San Diego, California, Feb. 10, 2023 (GLOBE NEWSWIRE) -- HUMBL, Inc. (OTCQB: HMBL) announced the spin-off of Tickeri, Inc. in a strategic move to focus resources exclusively on developing and releasing HUMBL’s own core technologies and customer funnel. Spinning off this subsidiary allows HUMBL to tailor capital allocation strategies, reduce burn rate and make company-specific investment decisions to drive long term growth and value.
In an agreement executed with the Tickeri founders on January 31, 2023, the parties mutually released all liabilities and the Tickeri assets were transferred back to its founders, cancelling related promissory notes. The spin-off will strengthen HUMBL’s balance sheet by significantly reducing company debt by $10,852,916 and enhancing shareholder’s equity.
Although this subsidiary provided top-line gross revenues to the Company, this ultimately did not result in bottom-line profits and actually increased day-to-day operating expenses for HUMBL. Divesting of this subsidiary will help to reduce operating losses each fiscal quarter. Focusing on the Company’s core technology will help to lower overhead and the reliance on dilutive financing.
“With this strategic move, we are focusing our capital and time on our own Web 3 platform and reducing our burn rate,” said Brian Foote, CEO of HUMBL. “The move allows HUMBL to further own its customer journey from start-to-finish across the HUMBL digital wallet, search engine, advertising, social media, ticketing, merchandise and digital collectibles. This decisive split is an integral step towards our goals of driving organic sales revenues, reducing debt and uplisting to a major national exchange.”
About HUMBL
HUMBL is a Web 3 platform with product lines including the HUMBL Wallet™, HUMBL Search Engine™, HUMBL Social™, HUMBL Tickets™, HUMBL Marketplace™ and HUMBL Authentics™. The company also has a commercial blockchain services unit called HUMBL Blockchain Services™ (HBS) for private and public sector clients.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, the Company's ability to successfully execute its expanded business strategy, including by entering into definitive agreements with suppliers, commercial partners and customers; general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technical advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, regulatory requirements and the ability to meet them, government agency rules and changes, and various other factors beyond the Company's control. Except as may be required by law, HUMBL undertakes no obligation, and does not intend, to update these forward-looking statements after the date of this release.
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