MIAMI, August 11, 2016 /PRNewswire/ --
Next Group Holdings, Inc. (OTCQB: NXGH) announced that today it has completed the acquisition of Tel3 from Arik Maimon, who serves as NXGH's CEO and Chairman. Under the agreement, NXGH acquired the telecom marketing brand "Tel3" together with the assets and client database of Tel3 from Mr. Maimon for the amount of $10.00 (ten dollars). We previously announced a different transaction, but Mr. Maimon decided to show his support of shareholder value as well as commitment to, and faith in Next Group Holding's future by modifying his compensation to $10.00 (ten dollars) instead of 9,000,000 shares to prevent shareholder dilution.
Tel3 is a marketing group that had revenues over $3 million in 2015 with 31.5% gross margin, 25,000 active customers, and a database of 300,000 current and former clients.
Mr. Maimon, who recently acquired Tel3 from a third party, had agreed to sell Tel3 to NXGH on substantially similar terms to the terms of the transaction under which he personally acquired the Tel3 assets, subject to a fairness opinion, a unanimous vote in favor of the transaction by all disinterested members of NXGH's board, and other regulatory considerations. In order to prevent shareholder dilution, Mr. Maimon decided to show his commitment and faith in Next Group Holding's future and modified his compensation to $10.00 (ten dollars) instead of the 9,000,000 shares her personally paid out of his own personal shares, to initially acquire Tel3.
"Mr. Mammon's commitment to NXGH and faith in its future has been proven by his support of shareholder value by modifying the sale price of Tel3 from 9,000,000 shares to $10.00 (Ten Dollars). I believe that NXGH's acquisition of Tel3 at this fantastic price, will provide great value and substantial benefits to NXGH and its shareholders, as this deal will bring us a significant new revenue stream, additional profits and a large new customer base," said Michael De Prado, President and COO of NXGH. "This is a major step forward that will enhance NXGH's creative, disruptive technologies and position it in the markets for its telecommunications and financial products," added De Prado.
NXGH plans to offer enhanced financial and telecom services and products to those Tel3 customers that opt-In to receive special offers and rewards based on their daily use of NEXTCALA and M&M Telecom offerings.
NEXTCALA financial products will provide attractive pricing and extra benefits to unbanked and underbanked consumers. Rewards programs will also help to lower costs and improve lifestyle and family connections.
NXGH, through its wholly owned subsidiary, Meimoun & Mammon LLC (which does business as M&M Telecom) expects to increase the revenue streams that were historically achieved by Tel3. M&M Telecom has had FCC 214 "Common Carrier" Authority since 2011, and is a contributor to the FCC Universal Service Fund. As a result of NXGH's acquisition of Tel3, M&M Telecom will be able to offer and provide extra services, benefits and rewards to customers. Matthew Schulman, an executive with over 20 years in the telecommunications market has been appointed CEO of M&M Telecom, which also oversees the Tel3 and Next Mobility 360 brands.
"NXGH's acquisition of Tel3 assets represents a major step forward to help us develop M&M Telecom into a major telecom provider and bring NEXTCALA to the forefront in the everyday financial solutions markets," said Arik Maimon, NXGH's chairman and CEO. "We believe that bringing Tel3 under the umbrella of M&M Telecom will produce significant revenue growth and profitability for NXGH. I would hope all shareholders to support the company and show that in approximately 6 months from going public, we have turned the company around to produce revenues, acquire valuable assets and just started the process to buy out the convertible debt... With that being said, I ask for continued support to the company and its leadership as exemplified with our latest transaction, providing profitable revenues and customers by selling a successful business's to NGH for $10. This aggressive step shall pave the way to convert the Tel3 customer base into financial NXGH customers!" added Maimon.
About Us: NXGH is a corporation headquartered in Miami, Florida, which, through its operating subsidiaries, engages in the business of using proprietary technology and certain licensed technology to provide innovative mobile banking, mobility, and telecommunications solutions to underserved, unbanked, and emerging markets. NXGH's principal executive offices are located at 1111 Brickell Avenue, Suite 2200, Miami, Florida 33131, and its telephone number at that location is (800)611-3622. NXGH's web address is http://www.nextgroupholdings.com
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NEXT Group Holdings, Inc. (OTCQB: NXGH)
SOURCE Next Group Holdings, Inc.