FORT WORTH, Texas, Nov. 22, 2016 /PRNewswire/ -- Galenfeha, Inc. (OTC: GLFH) today announced the sale of the company's battery and stored energy division. Fleaux Services, LLC purchased the division for a cash consideration of $350,000 and royalty payments on each battery sold for the next 2 years.
Mr. James Ketner, Galenfeha's President and CEO, explained why the company sold the division: "Galenfeha benefits from the sale by receiving cash to improve the company's balance sheet; significantly reduce SG&A costs; and move forward toward profitability. Our overhead costs necessitated a price point not conducive to high sales volumes. Operational costs that were fixed in our pricing were the main barrier preventing the company from meeting sales projections and becoming profitable. Fleaux Services can move the operation under their roof with a minimal increase to their operating costs, thereby reducing the price of the batteries; which in turn will make these products more affordable to customers."
Since his reinstatement as Galenfeha's Chairman and CEO on October 27, 2016, founder James Ketner has aggressively attacked short-term challenges facing the company. Galenfeha recently extinguished all convertible notes; the sale of the battery division will greatly reduce operational costs and bring the company closer to profitability.
Mr. Ketner continued: "We will use most of the cash from this sale to pay off debt. Some of this debt repayment was to related parties, and I would like to thank them for their cooperation in waiving the interest accrued for the final payment and closure of their notes. With the recent termination of all convertible notes, and the proceeds from this sale, Galenfeha has reduced more than half of the debt reported in our last quarterly report, which will be beneficially reflected on our year-end financial reports. These recent developments, and what we have planned in the near future, will allow the company to stand on its own two feet, not requiring any more additional paid-in capital or dilutive financing."
Galenfeha disclosed the complete terms of this sale on Form 8-K, filed with the Securities and Exchange Commission earlier this morning. The company was founded in 2013, and its stock has been actively traded (GLFH) since September 2014.
For information on Galenfeha batteries and stored energy products, please visit www.fleaux.com.
About Galenfeha, Inc.
Galenfeha (GLFH) is an engineering, manufacturing, and product development company that designs new technology to help reduce and/or eliminate detrimental impacts to the planet's environment.
For more information, please visit www.galenfeha.com.
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SOURCE Galenfeha, Inc.