LAS VEGAS, Dec. 21, 2020 /PRNewswire/ -- UMAX Group Corp. (Pink Sheets (Alternative Reporting Pink: UMAX) – UMAX releases a review of important events in the past year as well as an overview of business plans for calendar year 2021.
Mr. Fletcher (President and CEO of the Company), states…"The calendar year 2020 has brought positive changes to the company and laid the foundation for the upcoming year. Since taking control of UMAX during the first quarter of this year I have been focused on taking the necessary actions to get UMAX current with OTC Markets and also taking the necessary actions to make changes in the capital structure necessary to make UMAX attractive to both market investors and potential acquisition targets. These corporate actions culminated with our first acquisition in the fourth quarter of this year with the acquired of Home Foam Corporation in November of 2020.
The changes to its capital structure included reducing the authorized common stock from 1,850,000,000 shares to 500,000 shares amended in the articles of Incorporation and the cancellation of 500,000,000 shares owned by the controlling shareholder. This reduced the issued shares by 89% and should be concluded by the end of January. Once these shares of Common Stock are cancelled, UMAX will trade at a more normalized market capitalization (with only 60,472,27 shares of Common Stock outstanding). Both of these corporate actions are pivotal to our acquisition plans for calendar year 2021."
As previously announced and stated above, UMAX acquired 100% of the equity of Home Foam Corporation ("Home Foam"), a commercial operation which specializes in architectural foam (EPS) design products. These products include columns, caps, bases, medallions, railings, balconies, balustrades, shutters, window trims and sills, crown moldings and interior & exterior moldings. Home Foam also provides ornamental foam pop-outs such as window treatments for outside of new homes for several of the largest stucco subcontractors and plaster companies in Las Vegas, Nevada. Additionally, Home Foam cuts foam for packaging inserts for shipping companies as well as geo-foam for highway and road development. The company also manufactures shutters for some of the largest regional home building companies for newly constructed residential homes. Home Foam has a basic web site at www.HomeFoamUSA.com which is currently being upgraded to be a full company and consumer facing, ecommerce-based web site.
Home Foam works expanded polystyrene (EPS) or extruded polystyrene (XPS), which is valued for its insulating and cushioning properties. Foam polystyrene can be more than 95 percent air and is widely used to make home and appliance insulation, lightweight protective packaging, surfboards, foodservice and food packaging, automobile parts, roadway, and road bank stabilization systems and more. Currently Home Foam fabricates shapes from polystyrene per specifications of its clients which includes event designs and packaging, as well as foam walls, columns, and crown molding for home builders. Utilizing heat cutting technology we can cut almost any shape and form.
Mr. Fletcher (President and CEO of UMAX) further stated…"The acquisition of Home Foam Corporation was an initial step for UMAX to acquire additional vertical and horizontal basis cash flow positive operations in the home building industry. With the current client base of Home Foam, it is anticipated that we will generate approximately $2.0M to $6m USD in revenue in calendar year 2021. What the most exciting reason we acquired this particular subsidiary is Home Foam is in the final process of completing the closing of several new clients during the first quarter of 2021 that would potentially increase revenue by a multiple of 5 to 7 times our projected current revenue. We anticipate making an announcement with regards to these new clients by the 2nd Quarter of 2021."
Home Foam currently operates a 12,500 square foot warehouse located in Las Vegas, Nevada. The current warehouse provides services for over 50 customers and currently has 13 full-time employees. During the first quarter of 2021, it will be moving to a new location which has 23,500 square feet of operational space due to the increased client base and increased work orders we are expecting in calendar year 2021. This location is brand new and currently being built out to Home Foam's specifications.
UMAX Group Corp. is a Nevada corporation, is a public quoted Pink Sheet issuer under the ticker symbol "UMAX". Currently, UMAX has one operational subsidiary, Home Foam Corporation (Nevada Corporation), which specializes in architectural foam (EPS) design products. This includes columns, caps, bases, medallions, railings, balconies, balustrades, shutters, window trims and sills, crown moldings and interior & exterior moldings. Additionally, they provide ornamental foam pop-outs such as window treatments for outside of new homes for stucco subcontractors and plaster companies. Additionally, Home Foam cuts foam for packaging inserts for shipping companies as well as geo-foam for highway and road development. The company also manufactures shutters for some of the largest regional home building companies for newly constructed residential homes. The company currently operates a 12,500 square foot warehouse located in Las Vegas, Nevada. The warehouse provides services for over 50 customer and currently has 13 full-time employees. Home Foam has plans to participate in the home building market in the Southwest Unites States during calendar year 2021. The company will eventually develop its own patented building system using EPS Foam products and a patented stucco-based coating. The coating insures higher R-values factors than traditional wood-built residences thus lower energy monthly cost. The company is also continually searching for companies that would expand the footprint in the home building industry for partnerships of acquisition.
Forward Looking Statement
Certain statements that we make may constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as believes, expects, anticipates, intends, plans, estimates, projects, forecasts, and future or conditional verbs such as will, may, could, should, and would, as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission from time to time, including our most recent Annual Report and subsequent Flings, which are available on Otcmarkets.com. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events or otherwise.
UMAX Group Corp.
Las Vegas, NV
SOURCE UMAX Group Corp.