Frisco, Texas, Sept. 16, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Verde Bio Holdings, Inc. (OTC:VBHI), a growing oil and gas company, issued an update to shareholders today:
To Our Valued Friends and Shareholders:
We hope that this finds you well. We at Verde continue to execute our strategy and want to bring you an update on our 10-K filing along with highlights of our past fiscal year.
• As mentioned in our prior release, we encountered an unforeseen delay in the filing of our 10-K this year. This was due to accounting level changes we were not prepared for because we are viewed as an “oil and gas” company by the government like Texaco or Exxon. We apologize for the delay and are glad that we now have the oil and gas accounting team added to our mix and will not have these issues on a go-forward basis.
• The past year transformed Verde to a true oil and gas company with a tremendous opportunity and a proven strategy. We continue to be bullish on oil and gas and the future of Verde as a viable and very profitable company. As commodity prices continue to rise, so does our revenue and thus net profits. That is one of the best things about our strategy, increased revenue with no increased cost to Verde and our investors. Some highlights from the year include:
• We raised $10 million in five months through a successful Reg A+ Offering. As stated in our business plan, we have deployed much of that capital into revenue producing assets.
• To date we have closed 15 acquisitions and are able to forecast significant revenues based on current oil and gas prices once we are in pay status on all properties. These acquisitions allowed us to post positive cash flow for the first time as a company.
• Due to the U.S. Securities & Exchange Commission pricing requirements for Reserve Reporting, and getting such a late start in our fiscal year with the acquisitions, net Income was not realized. However, we are very excited about the current year and the high levels of cash-flow we project as well as the acquisition and divestment opportunities in the current markets.
• To further right our Company and to increase shareholder value, we cleaned up our balance sheet by eliminating more than $1.5 million (including penalties and interest) in convertible debt, most of which we inherited when we took over the company in late 2019. We are very proud to announce we are now debt-free.
• We continue to have a healthy deal-flow and are evaluating potential acquisitions which complement our portfolio, as well as seeking opportunistic divestments in which we can make large profits, while actively managing the portfolio to make sure we are maximizing revenue based on current commodity environments.
• We will also be looking to work with energy funds and bankers to establish a credit facility in order to facilitate larger acquisitions which we believe have the power to transform our Balance Sheet in a tremendous way.
• In the upcoming year, we look to expand our portfolio and begin to look at acquiring some strategic non-operated working interest in stable areas. This allows for significant revenues and also tax benefits as we are now faced with dealing with revenue and reinvestment opportunities.
• To further better communication with Shareholders, we updated our website to allow better access to Company updates and news. We also have an animation to help investors and the public understand our strategy better. The animation can be found on our website.
• With respect to our path to up listing, we continue to target listing on the OTCQB or the OTXQX as soon as practically possible. In summary, we remain focused on execution and are selectively investing in our continued growth, with an emphasis on creating an incredibly dynamic and profitable company with significant shareholder value. Going forward, along with our required quarterly filings, we plan to provide these shareholder letter updates frequently given the overwhelming interest in our Company. In the meantime, please reach out to us if you have questions. We will continue to keep you posted on our progress, accomplishments, and results.
Sincerely,
Scott A. Cox, CEO
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release that are not strictly historical are “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. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of the Company’s products and services, the ability to complete software development plans in a timely manner, changes in relationships with third parties, product mix sold by the Company and other factors described in the Company’s most recent periodic filings with the Securities and Exchange Commission, including its 2019 Annual Report on Form 10-K and quarterly reports on Form 10-Q.
Contact:
Paul Knopick E & E Communications
pknopick@eandecommunications.com
940.262.3584
