Exxe Group Inc. Announces Dramatic
Jump in Quarterly Revenue and Asset Growth
Revenue Jumps Nearly 500%, Equity Rises by 164%
in September 2019 Quarter
New York, NY -- November
19, 2019 -- InvestorsHub NewsWire -- Exxe Group,
Inc. (OTC
PINK: AXXA), a diversified company focused on
synergistic acquisitions in real estate, sustainable technology,
media, financial services and agribusiness, announced today strong
year-over-year and quarterly financial results for the period ended
September 30, 2019.
Operating
Snapshot
Revenue grew by a substantial 484%
to $2,610,756 as compared with $448,021 for the same period last
year. On a quarter-to-quarter basis, top-line rose by an impressive
117%, as compared with the June 2019 period. Operating income
jumped by 31% to $245,921 versus $187,141 in the corresponding
quarter in 2019. Net loss for the quarter was ($270,713),
reflecting financing costs related to the series of acquisitions
executed during the period. For the first six months of the fiscal
year, Exxe Group recorded $3,826,192 in revenue and a net loss of
($1,007,092) versus $796,460 and net profit of $294, 830, for the
same period last year, respectively.
While growth in revenue was
diverse and across multiple holdings, the primary drivers of the
sales growth included new holdings, including DHE Group, and the
Company’s recently acquired agribusinesses, and others. Sales
momentum is building rapidly in our key holdings and we expect to
continue to generate significant gains in revenue for the quarter
ending December 31, 2019, which will include additional, acquired
firms and cross-holdings sales. In addition, as the integration of
the recently closed transactions continues, our gross and operating
profitability will be favorably impacted as well due to cost-saving
measures. We are also exploring alternative financing sources which
could reduce our financing costs, thereby raising our overall
profit profile.
Importantly, shareholder’s equity
rose to $99,750,462 versus $37,753,734 in the corresponding quarter
in 2018, a 164% increase. Moreover, shareholder’s jumped by 20%
from the previous quarter. The shareholder’s equity figure is a key
measure that demonstrates that the company’s aggressive, targeted
acquisition and operations strategy is succeeding and its growth is
accelerating. While integration of our new transactions are
underway, management is committed to enter into new Letters of
Intent during the current quarter and in 2020 in order to further
penetrate and establish a large footprint in our targeted
industries across the globe. As these transactions close, we will
further increase our reach and enhance our overall financial
performance.
M&A
Review
During the September quarter, Exxe
Group acquired a 51% interest in three agribusiness entities
engaged in processing, storage, trading, transport, and logistics
for $16,000,000, in exchange for an $8,000,000 three-year note and
4,000,000 Series C preferred shares. These entities accounted for
roughly a third of total quarterly revenue along with modest
profitability. We expect recent and pending transactions,
will have a material and positive effect on our financials for the
current quarter and beyond.
Financial
Transactions
During the September quarter, Exxe
Group entered into a share agreement with its largest shareholder
which has provided a very positive effect on our total share count.
The shareholder agreed to convert 50 million common AXXA shares
into Series B preferred on a dollar for dollar basis, thereby
reducing shares outstanding by over 10%.
Separately, Exxe Group has elected
to seek funding through the Securities and Exchange Commission
(SEC) qualified Regulation A-plus (Reg A+) offering of common
stock. Regulation A-plus IPO was promulgated into a law under Title
IV of the Jobs Act 2012, which falls under the Securities Exchange
Act of 1933. This allows companies in their early stages to seek
investments from the public. Exxe Group plans to raise up to
$3,000,0000 in this offering, slated to commence this
quarter.
Dr. Eduard Nazmiev, Ph.D., CEO
stated “Exxe Group is proud of its high value shareholder’s equity
and we appreciate the long-term view in which many of our
shareholders take with respect to our strategy. These factors,
including the big gap between our market value and equity were key
considerations as to why we expect to raise funds at a premium to
our current share price. Moreover, we believe this approach will
also limit the dilutive effect of a fund-raising
event.”
About Exxe Group
Exxe Group is a diversified corporation focusing on acquisitions in
the following sectors: real estate, sustainable technology, media,
agribusiness, and financial services. Exxe Group is an
acquisition-driven company. The Company strategy is to acquire
controlling equity interests in undervalued companies and undertake
an active role in improving their performance - accelerating their
growth by providing both access to capital and management
expertise. For additional information go to www.exxegroup.com
CONTACT: Exxe Group
IR: info@exxegroup.com
Forward-Looking Statements
This press release contains 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.
In some cases, you can identify forward-looking statements by the
following words: "anticipate," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "ongoing," "plan,"
"potential," "predict," "project," "should," "will," "would," or
the negative of these terms or other comparable terminology,
although not all forward-looking statements contain these words.
Forward-looking statements are not a guarantee of future
performance or results and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved. Forward-looking statements are based on
information available at the time the statements are made and
involve known and unknown risks, uncertainties and other factors
that may cause our results, levels of activity, performance or
achievements to be materially different from the information
expressed or implied by the forward-looking statements in this
press release.
Exxe (PK) (USOTC:AXXA)
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