WHEAT RIDGE, COLORADO, July 12, 2021 (GLOBE NEWSWIRE) -- GenTech Holdings, Inc. (OTC Pink: GTEH) (“GenTech” or the “Company”) (www.gentechholdings.com), an emerging leader in the Functional Foods marketplace (www.sinfitnutrition.com), is pleased to provide current and prospective shareholders with a 2021 Mid-Year Update, highlighting key accomplishments midway through what Company officials believe to be a pivotal year for GenTech.
Management highlights the Company’s recent series of four fully completed value-add acquisitions, including Yourganics (www.yourganicsnutrition.com), MPB Snacks (www.mpbsnacks.com), NxtBar (www.nxtbar.com), and Fizzique (www.drinkfizzique.com). The Company is also in the process of closing a fifth, after signing an LOI to acquire Nature Soothie (NatureSoothie.com). The Company expects to close the Nature Soothie acquisition before the end of July.
The Company has also been proactively engaged in balance sheet improvements driven by a combination of cash from operations and mutually beneficial renegotiations.
During the first half of 2021, the Company has settled with multiple convertible noteholders, removing more than $1 million in convertible notes from the balance sheet. This debt reduction initiative will continue throughout 2021. The Company plans to have no outstanding convertible debentures on its books by the end of Q2 2022. At present, only one major convertible noteholder remains outstanding: ‘East Capital Investment Corp’. The Company is actively engaged in proactive discussions with this creditor. The Company announced early in 2021 that it had settled an outstanding judgement of $1.09 million from 2017 at that time.
In total, GenTech has proactively reduced total outstanding liabilities by $2 million, or 62%, so far this year, leaving the Company in a significantly strengthened position as management looks forward to explosive growth potential in 2022.
In addition, the Company has begun to see dramatic sales growth in 2021. As of June 30, leaving out the contributions of recent acquisitions and only focusing on the core SINFIT Nutrition segment, total revenues were approximately $300k during the first half of the year. If acquisitions are included, that number, expressed as a semi-annualized run rate, grows to well over $650k. However, significant additional commercialization involving acquired products will roll out over coming months, pushing that run rate substantially higher by year end.
David Lovatt, GenTech CEO, commented, “The Fizzique acquisition is the most important deal in GenTech history. We have already engaged an outsourced beverage specialist to handle all provisioning, manufacturing, and third-party contract packing. We are ordering 4 million cans – 1 million of each of Fizzique’s four flavors – in a production run that should be completed in August, ready to ship. Our topline expectation from this tranche of product exceeds $6 million in SINFIT sales.”
Lovatt added, “SINFIT Nutrition has also contracted with an expert outsourced sales agency to secure contracts with major retailers, which we believe is a very feasible plan given our understanding of past negotiations involving Fizzique’s products – Fizzique is already approved for sale in Walmart stores, for example. We hope that a production run of approximately 4 million cans of Fizzique each quarter by Q1 of 2022 will become ‘run-rate business’ for the Fizzique brand. That could give us a conservative 2022 Fizzique sales forecast range of $15-20 million.”
SINFIT Nutrition currently has post-acquisition cash assets totaling approximately $3 million, leaving the Company well positioned to drive successful commercial execution of all of the opportunities arising from its 2021 acquisitions.
“It’s important to place the past six months in a larger context,” concluded Lovatt. “Our consolidated revenues for 2019 were virtually nothing, and we did only approximately $250k in 2020. So, the growth we are seeing this year is huge. Once our cash requirements are met – which we expect to be in very short order – we believe the pressure on our shares will lift and it will have an opportunity to price according to the strong fundamentals we have lined up over recent months, and the growth potential they imply for coming quarters. Hence, we see no need at present for a reverse split.”
About GenTech Holdings, Inc.
GenTech Holdings, Inc. is a publicly traded company under the symbol GTEH. The Company owns and operates leading functional foods brand, Sinfit Nutrition, which offers a range of high-end Functional Foods and is actively buying revenue generating brands.
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of GenTech, Inc.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of GenTech, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on GenTech's future results. The forward-looking statements included in this press release are made only as of the date hereof. GenTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GenTech undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by GenTech.
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