Carson City, NV & Hong Kong,, Oct. 17, 2017 (GLOBE NEWSWIRE) -- 12 Retech Corporation (OTC: RETC) announced that as part of its agreement with EP Acquisition Vehicle Corp to acquire Active Fashion Group, 12 Retech will be assigned $12 million in equity funding commitments to fuel the Company's growth. Separately the Company entered into a debt agreement with SBI Investments, LLC to borrow up to $1 million in funds to bridge the Company's needs until the acquisition of AFG is completed.
EP Acquisition Vehicle has in place a $12 million Equity Line Agreement that will be assigned to 12 Retech upon close of the Active Fashion Group transaction. This Agreement will allow the Company to put shares to L2 Capital, LLC as capital is needed and it requires L2 to immediately purchase the shares for "At the Market" prices less brokerage fees of 5%. There are no requirements for the provision of "commitment shares" from the Company. The funds will be available immediately after the approval of an S-1 filing with the United States Securities and Exchange Commission.
SBI Investments, LLC agreed to provide loans to the Company for up to $1 million dollars until the “At the Market" facility becomes functional. These loan advances are not convertible unless the Company defaults on the repayment. The Company intends to repay any advances from the proceeds of the Equity Line to minimize dilution. The Company has only drawn down $150,000 from the $1 million available to pay expenses related to the acquisition closing costs and as working capital.
Angelo Ponzetta, 12 Retech's CEO commented, "We wanted a funding mechanism that minimized the dilution to our shareholders while providing funds as needed. This format accomplishes that goal providing funding when we need it and allows us to execute our plans to increase revenue and earnings and enhance shareholder value in a timely fashion.”
Mr. Ponzetta, continued, "We have been interviewing several candidates for the position of Chief Marketing Officer so that as soon as we acquire AFG we will be ready to increase the company's e-commerce revenue throughout 2018 and beyond. Active Fashion Group sells mostly wholesale to retailers throughout the United States and we plan to expand its direct to consumer revenues dramatically."
About 12 Retech Corporation:
12 Retech Corporation (OTC: RETC) is “Leading the Profitable Convergence of Retail and Online Commerce through Technology©”. The Company currently has three subsidiaries: 12 Hong Kong Limited, 12 Japan Limited and 12 Retail Corporation.
12 Retech Corporation manages our licensed technologies and is the developer, installer and operator of the proprietary technologies used in the Unifying Shopping eXperience System (“USXS”) hosted on the 12 Mirror (our interactive electronic mirrors) and the 12 Kiosk (our interactive digital displays) which can be installed in any high-traffic location and enhanced through our 12 Mobile-App. All the Company's products are uniquely designed to bridge the convergence between physical and virtual Commerce by getting consumers back out to the brick and mortar shopping centers and malls, to enjoy the next level of shopping experiences utilizing their smart phones with the 12 Mobile-App, with our in-store technologies and/or our online technologies which allow consumers to purchase products directly from videos posted online. Our technologies are created to build loyal repeat customers for our brand partners the world over. When our interactive products are placed in high-traffic locations like train stations, bus stops, airports, shopping venues and others, they provide media awareness with the ability for consumers to make purchases anywhere. 12 Retech Corporation operates through three subsidiaries; the technology development company 12 Hong Kong Limited, the operating subsidiary 12 Japan Limited which deploys our products and 12 Retail Corporation which will hold our future consumer brands and retail operations.
12 Retail Corporation — our wholly owned subsidiary — is a USA Company that is the only vertically integrated company using all of our technologies to enhance Commerce through all channels. Through them, we will continue to design, manufacture, import, export, sell online, have retail boutiques and sell to big-box retailers. With our direct experience in all aspects of Commerce we are uniquely positioned to understand the convergence of Online and Retail as well as the issues with their implementation. This allows 12 Retech Corporation to design and provide solutions that stay ahead of the market and solve potential implementation challenges.
For more information visit our website at www.12retech.com.
12 Retech Corporation is publicly traded in the United States on the OTC Markets under the symbol: RETC.
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.
Source:12 Retech Corporation