Las Vegas, NV & Hong Kong, Oct. 16, 2019 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTC: RETC), announced today that it has executed definitive agreements to acquire a controlling interest in Bluwire Group, LLC (“Bluwire”) and completed that acquisition transaction. Bluwire operates 12 retail stores in select airports and casinos located in the USA.
Under the terms of the Exchange of Equity Agreement, 12 ReTech is exchanging 500,000 of its Series A Preferred Shares for a controlling interest in Bluwire Group, LLC. Bluwire is a profitable retailer of consumer electronics and travel related products in 11 premium airport terminals and one East Coast casino that booked over $5.3 million in annual revenue in 2018.
Bluwire has received over $650,000 in new funding for working capital purposes in connection with this acquisition. A significant portion of this working capital was provided by the sellers back into Bluwire. This working capital financing is not convertible into 12 ReTech stock under any scenario and is based on the operations of Bluwire.
Angelo Ponzetta, Founder and CEO of 12 ReTech commented, “Bluwire Group is a perfect fit for our Company as it allows us to operate high-volume, profitable retail locations in the United States where we plan to demonstrate our cutting-edge retail technology to other USA operating retailers. This will also allow us to delight consumers with our technology’s ease of use. In addition, Bluwire’s principals will remain with our Company. As a result, we gain their expertise and experience for our efforts to grow our newly acquired operations.”
Christopher Burden, President of Bluwire commented, “We are excited to join the 12 ReTech team. Becoming part of 12 ReTech allows us to leverage our retail experience with 12 ReTech’s technology. This should result in greater sales per retail square foot than we have ever generated in the history of our stores. In addition, we have many opportunities to expand our brand into additional airports, casinos and other appropriate venues that we will bring to the table.”
Mr. Ponzetta continued, “What we have discovered in trying to penetrate the USA market was that American retailers discounted the success that we had achieved at our ITOYA, Japan customer sites. Therefore, I have determined that we need to demonstrate COMP Sales growth and earnings lift at a USA retailer in order to gain traction here. So, we decided to acquire a profitable high traffic retailer where we could demonstrate our technology’s benefits and Bluwire fit all of our requirements, beautifully.”
Maurice Ojeda, who will continue as Bluwire’s Chief Marketing Officer added, “Bluwire can also function as an innovation lab for additional enhancements to the software and applications as well as testing new products from 12 ReTech’s other micro-brands.”
Emily Santamore, CEO of Rune NYC — one of 12 ReTech’s fashion micro-brands — stated, “Bluwire becomes another sales channel where we can sell some of our existing products and introduce newly designed travel related garments. Bluwire’s high traffic locations will provide tremendous visibility for our brand, building better brand acceptance across all of our sales channels, both wholesale and online. Chris and Maurice bring so much experience to our team as well as being a delight to work with.”
Mr. Ponzetta continued, “Many of our shareholders were dismayed when we recently announced that we were doing a reverse stock split. However, reverse stock splits aren’t necessarily bad for shareholder value if they are done for the right reason and management has a plan. The company formerly known as Priceline now known as Booking.com, for example did a six to one reverse stock split in mid-1993 and because management executed on their business plan, their stock price has increased from a $22 post reverse split to what is currently over $2,000 per share since then. We have a plan too, and our reverse stock split allowed us to acquire the Bluwire Group which I’m sure our shareholders can now appreciate. With Bluwire we can now begin to deploy our technology to enhance all our brands and provide proof of the “lift” in revenue and earnings that our software can achieve to other retailers.”
“In addition, we have targeted additional acquisitions that will complement our brands, who can benefit from the synergies of working together and create a true omni-channel environment. We believe that over time these actions may provide significant value for our shareholders,” concluded Mr. Ponzetta, CEO of 12 ReTech Corporation.
About Bluwire Group, LLC:
”The Essence of Cool”
Bluwire’s contemporary and interactive stores attract customers with the most current portable electronics and latest technology innovations. Whether shoppers are looking for the coolest gadgets, the most comfortable last-minute travel clothes or a proven travel solution, Bluwire stays ahead of trend to deliver that ‘WOW’ experience to every shopper. Our staff of “Solutioneers” assist each customer to find exactly what they need to make their travel easier and more enjoyable. Over the last 11 years, Bluwire has continued to expand from its flagship store at Newark International Airport to 12+ locations in some of the nation’s busiest airports and casinos. For more information about our Company or to discover a Bluwire store near you, please visit www.bluwiregroup.com. If you would like us to consider selling your innovative products in our stores please email us at vendors@bluwire1.com.
About 12 ReTech Corporation:
“RETAIL REINVENTED”
12 ReTech Corporation has REINVENTED RETAIL for both our own retail outlets and other merchants who would want to license our cutting-edge retail software to experientially engage with consumers, increase revenues, reduce expenses and provide superior service to their customers. In addition to our software licensing business, the company operates twelve retail outlets that sell electronics and travel related products at premium U.S.A. airport and casino locations under our Bluwire brand. We create and sell fashionable apparel under our Rune NYC, Emotion Fashion & Lexi-Lu brands. We make clothing and travel accessories at our Red Wire Group factory.
As a vertically integrated omni channel retailer 12 ReTech’s technology team is able to truly understand and develop what merchants need in order to thrive in today’s difficult retail environment. We give our retailer clients the abilities and tools that enable them to compete effectively with the likes of Amazon, Walmart and others.
For more information about our Company visit us at www.12ReTech.com. To have your products carried in our stores visit www.shopbluwire.com. To learn about our apparel manufacturing capabilities, contact us at sales@redwiregroup.com or visit www.redwiregroup.com. To shop our brands please visit www.runenyc.com, www.emotionapparelinc.com, www.lexiludancewear.com. For retailers who would like to learn more about our cutting-edge software, contact us in the U.S.A at 530 539 4329 or at solutions@12Retech.com.
12 Retech Corporation is publicly listed on the OTC Markets under the symbol RETC.
About Rune NYC, LLC:
“Do Good/Feel Good”
Our Creative Director and Founder, Emily Santamore started Rune in 2013 with a simple sustainable philosophy, “You’ll feel good while doing good when wearing Rune NYC leggings; fashion that is wearable and slimming. Apparel that any ‘Rune Woman can feel good about.” The Rune Woman is modern, savvy, strong, and empowered, who defines her own identity and style. Whether she finds our products in a boutique, on our website, with our label or designs that we create for other retailers, she enjoys a high quality, comfortable garment with NYC Pizazz that’s always made in America. Made to order with no excess inventory created. Today, we are more than just great leggings!
For more information about our design services email us at designteam@runenyc.com. For more information about our brand or to shop, visit our website at www.runenyc.com.
Safe Harbor: This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.
Investor Relations Contacts:
Mark Gilbert
Magellan FIN, LLC
mgilbert@magellanfin.com
317-361-2392 (USA)
Corporate Headquarters
investors@12ReTech.com
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