UMAX GROUP CORP. - Acquisition of Home Foam Corporation
23 Nov, 2020, 06:30 ET
LAS VEGAS, Nov. 23, 2020 /PRNewswire/ -- UMAX Group Corp. (OTC Markets: UMAX), a Nevada corporation, has completed the acquisition of Home Foam Corporation (Nevada Corporation), a Las Vegas based custom manufacturer of EPS (polystyrene foam) shapes, shutters, coatings and castings for a variety of regional commercial clients and home builders.
Mr. Fletcher (President and CEO of the Company), states…"We negotiated the acquisition through the use of our Series "B" Preferred Stock so that the current common stock shareholders would not experience any immediate dilution of their shares. Additionally, there is contractual Ryder which states that the Series B Preferred Stock to be issued as part of this acquisition cannot be converted to the Common Stock of the Company for a period of three calendar years or Home Foam has four profitable consecutive quarters, whichever comes first. We felt by structuring the transaction in this manner the current shareholders would not face dilution if the acquired company performed less than expected."
The Company acquired Home Foam Corporation pursuant to an equity exchange agreement executed on Friday, November 20, 2020. Pursuant to this Agreement, the Company acquired all outstanding equity of Home Foam (making it a wholly owned subsidiary) in exchange for 1,000,000 shares of Series B, Preferred Stock of the Company.
Mr. Fletcher further stated…"After a little over a year of operations, Home Foam had its first profitable month in October and looks to be in position to grow its revenues significantly over the next calendar year. Additionally, the Company has well over $350,000 USD in assets (e.g. replacement value) which includes nine high speed foam cutting machines and 2 box trucks used for customer deliveries. The company has no long-term debt to service. The Company felt that Home Foam was a strategic acquisition for the Company due to the fact that its current business operations have many vertical and horizontal avenues through which we can expand our business footprint and aligns with the current business plan moving forward."
Home Foam specializes in architectural foam (EPS) design products which includes columns, caps, bases, medallions, railings, balconies, balustrades, shutters, window trims and sills, crown moldings, as well as interior & exterior moldings. Additionally, they provide ornamental foam pop-outs such as window treatments for the outside of new homes for both stucco subcontractors and plaster companies. The Company cuts foam for packaging and inserts for shipping companies as well as geo-foam for highway and road development. The company also manufactures shutters for regional home building companies for installation on newly constructed residential homes. The company currently operates a 12,500 square foot warehouse located in Las Vegas, Nevada from which it services over 35 customer clients and currently has nine full-time employees.
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SOURCE UMAX Group Corp.
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