Social Decay, LLC dba Social Sunday becomes a 12 ReTech Subsidiary.
Las Vegas, NV & Hong Kong, Nov. 21, 2019 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTC: RETC) announced today that it has acquired Social Decay, LLC dba Social Sunday. As a result, we expect to consolidate Social Sunday’s financials into our own SEC financial reports beginning with the Company’s upcoming year end, FY2019 Form 10-K due in March of 2020.
Social Sunday is a growing fashion brand, founded in mid-2014, that has grown its revenues to $491K in 2017 and $607K in 2018. Management expects to finish 2019 with over $650K in sales that measure in with a 40% plus gross margin. They sell their products mainly through a variety of renowned fashion retailers such as Anthropologie, Bloomingdale’s, and Hudson Bay which owns Saks 5th Avenue and Neiman Marcus. Social Sunday, which has a strong focus on women’s tops, strongly complements the Company’s Rune NYC brand.
The Company acquired Social Sunday under an Equity Exchange Agreement whereby Founder and President, Samantha Sisca, exchanged 100% of her equity in Social Sunday for 30,000 Series D-6 Preferred Shares issued by the Company. (See the Company’s SEC Form 8K filed on November 21, 2019).
Angelo Ponzetta, 12 ReTech’s CEO stated “We continue to execute our business plan to acquire high growth synergistic operations with significant revenue. We believe that our acquired operations, when integrated, will provide us with both the opportunity to demonstrate the lift that our software technology can provide to retailers, and access to other retailers who are clients for our consumer brands to whom we can sell our technology. I am proud of our team as they are executing our business plan well.”
Mr. Ponzetta continued, “With Social Sunday, we gain additional revenue, a talented executive in Samantha Sisca, and when we combine Social Sunday’s products and sales channels with those of our Rune NYC fashion brand, we will get considerable growth in the revenues of both companies. By consolidating the operations of our fashion brands, together with our production factory we will be able to dramatically reduce our operating expenses also. I believe that by using our high traffic retail stores in airports and casinos recently added through our Bluwire Group acquisition to showcase all of our products and our software technology, we should see our organic annual revenues grow substantially from today’s $6 to $7 million annual run rate to a future $10 million or more annual run rate in 2020! We continue to look for other synergistic acquisitions to further accelerate our growth.”
Samantha Sisca, Founder and President of Social Sunday commented, “I am thrilled to be partnering with 12 Retech. While Social Sunday has a strong wholesale business and brand presence that we have built over the past 5 years, I have been looking for the right partner that will support my vision to grow the company into a flourishing lifestyle brand. I am looking forward to building product categories and assortments, increasing retail distribution channels and revenue, and in turn, boosting our charity initiatives that are a vital component of the ethos of the brand. 12Retech is an innovative company with strong resources that both compliment and benefit our mission.”
Samantha Sisca continued, “With the support of 12ReTech’s back office and our Red Wire Group factory in Utah, I will be able to further build out our USA production and sustainability efforts. In conjunction with our current factory partners, we now have the ability to expand our line very quickly. I am also very excited about 12 ReTech’s retailer technology which will help us to scale our unique quick apparel customization abilities. Our ability to quickly turn around custom orders for our customers differentiates our brand in the marketplace and appeals to many of our top retailer partners.”
Emily Santamore, Rune NYC’s President added, “During the due diligence process, Samantha and I have been planning the ways that we can work together to share resources, contacts and expertise. We have determined how we can leverage our combined contacts and sales channels to increase both revenues and earnings to benefit 12 ReTech’s shareholders. I am very excited to be working with Samantha and want to wish her a warm welcome to the team.”
Angelo Ponzetta concluded with “We started 2019 with great optimism for the future and I am proud of our team as they executed our business plan well. As we begin to close the gap on profitability, we are now able to work on adapting our software technology for deployment in new and exciting ways. at our Bluwire stores in the USA. “
About Social Decay, LLC dba Social Sunday:
Social Sunday is a lifestyle brand for modern women who strive for a balance between a busy life and self-care. Focused on creating community through empowering, relatable messages, our mission is to produce clothing that you’ll love the look and touch of, but also feel good about wearing. When you wear Social Sunday, you are supporting a company that strives to give back, empower others, spreads positivity, and supports small businesses.
Social Sunday is ethically made in the USA and hand-printed in their factory in Brooklyn, New York. Our apparel is currently sold by over 500 retailers around the world including brand stores such as Anthropologie, Bloomingdale’s, Hudson Bay and others, and has a growing e-commerce business. If you are interested in learning more about us or shopping our brand, please come visit us at www.socialsunday.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.lexiludancewear.com or www.socialsunday.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.
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.
Investors Relations Contacts:
Mark Gilbert
Magellan FIN, LLC
mgilbert@magellanfin.com
317-361-2392 (USA)
Corporate Headquarters
investors@12ReTech.com