FORT LEE, NJ, May 21, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- GD Entertainment and Technology (OTC: GDET) (“GDET” or the “Company”) is pleased to provide current and prospective shareholders with an update as the Company streamlines operations to focus the full scope of its operational and capital resources more narrowly to maximize long-term top and bottom line performance. The centerpiece of this focus will be online sales of CBD-based products primarily through TheGreeneryCo.com store.
Anil Idnani, CEO of GDET, commented, “After analyzing our business model, GDET has undertaken a substantial realignment in operational and strategic focus to maximize returns from our most promising segment: e-commerce primarily centered around CBD-based products through TheGreeneryCo.com store. This realignment has entailed a series of cost-saving and cash-generating actions that will help to support the growth of the online CBD business by creating and diverting resources that can now be directed toward driving sales growth and customer acquisition.”
The Company has already divested its cryptocurrency mining operations and equipment as well as all assets involved in its cryptocurrency ATM business. Proceeds from the sale of this equipment are being used to improve the Company’s balance sheet and fund future marketing activities designed to expand awareness of The Greenery brand and drive accelerating sales from CBD e-commerce operations.
In addition, the Company closed its physical CBD retail business, further reducing expected expenses to emphasize its highest-margin path to aggressive sales growth. Management notes that the online CBD model represents the long-term future of the Company going forward.
“We have already begun the process of exploring a range of options to drive expanding sales performance,” continued Idnani. “At this point, we are considering a number of strategies, including aggressive marketing investments as well as potential M&A moves designed to widen our end market footprint. We haven’t been this excited about the road ahead in a long time.”
Management notes that market conditions for CBD-based products continue to present a powerful opportunity. Brightfield Group research suggests that the overall CBD-related products market grew over 700% in 2019, pushed along by uptake and distribution from mainstream big-brand US retailers (such as Kroger’s, Walgreens, Walmart, Rite-Aid, and others) who began to carry CBD products in plain sight of browsing customers. This mainstreaming trend is expected to continue in the quarters and years ahead. According to research from MRFR, the global CBD market is estimated to register continued strong growth at a CAGR of 125% from 2019 to 2026.
About GDET
GD Entertainment & Technology, also known as GDET, focuses on high growth industries to fulfill a diverse selection of premium products nationwide. The company is now solely focused on building the #1 online source for high-quality CBD-based products at TheGreeneryCo.com.
Safe Harbor Provision Cautionary statement for purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. Please also review GD Entertainment and Technology annual and quarterly financials for a more complete discussion of risk factors. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of these securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of these securities under the laws of any such state.
Contact:
GD Entertainment and Technology
732-851-3756
anil@gdet.co
www.gdet.co
1 Bridge Plaza
2nd Floor
Fort Lee, NJ 07024