12 ReTech Corporation (OTC Pink: RETC) operates as a micro-brand roll up acquisition company, which primarily offers technology solutions to help retailers be in a better position to compete with Amazon.com, Inc. (NASDAQ: AMZN) and Walmart, Inc. (NYSE: WMT). Shares of the software company are soaring 66.67%, through afternoon trading on Thursday, April 25, 2019. Over the past month, 12 ReTech Corporation has seen average daily volume of 31.86 million shares. However, volume of 251.82 million shares or dollar volume of $251,820, has already exchanged hands through afternoon trading on Thursday.
Shares of 12 ReTech Corporation are surging today, after the company announced that its access and eligibility for traditional financing options are growing, as the business and its subsidiaries continue to develop. The company’s acquisition of Red Wire Group had provided 12 ReTech access to a $50,000 secured revolving line of credit with Red Wire’s bank in Utah. Another subsidiary, Rune NYC, LLC, just recently executed a $1.5 million revolving factoring credit line with Capital Funding Solutions. In addition, 12 ReTech also recently executed a PIPE funding agreement with institutional and accredited investors, which includes $500,000 in gross proceeds from the sale of convertible, preferred stock. Here is the full press release detailing of the traditional funding options:
12 ReTech Corporation Press Release:
Las Vegas, NV & Hong Kong, April 25, 2019 (GLOBE NEWSWIRE) — 12 ReTech Corporation (OTC: RETC) announced today that it has evolved to the point where the Company and its subsidiaries now have access to more traditional financing than the convertible debt instruments that it has relied on previously.
With the acquisition of Red Wire Group, the Company now has access to a $50,000 traditional secured revolving bank-line of credit (RLOC) with Red Wire Group’s local Utah based bank. This credit line functions as an overdraft tied to Red Wire’s checking account and has an annual interest rate of Prime plus 2.5%
Rune NYC, LLC has just executed a $1.5 million dollars revolving factoring credit line with Florida based Capital Funding Solutions (“CFS”). Factoring is a standard form of financing in the Fashion Industry and the amount offered is indicative of the faith that CFS has in the growth of Rune NYC, 12 ReTech’s newest subsidiary.
12 ReTech itself has executed a PIPE (Private Investment in a Public Entity) funding agreement with an institutional and accredited investor whereby the investor will provide funding to the Company with up to $500,000 by purchasing preferred shares that are convertible at a later date into common shares in a no discount to the market formula (see Form 8-K dated March 20, 2019). The Company has already drawn down $115,000 under this arrangement.
Angelo Ponzetta the Company’s CEO commented, “We are very pleased with the progress our Company is making on many fronts. With our recent acquisitions we are now generating significant revenues and the traditional finance industry is beginning to recognize our improved footing.”
Emily Santamore, manager of Rune NYC stated, “Working with the team at 12 ReTech has been awesome. The factoring credit line with CFS really allows us to “put the pedal to the metal” as far as growth is concerned. Combined with the cost savings that we receive through Red Wire Group’s manufacturing operations, we are able to do business with many additional retail customers as we are now able to deliver against their purchase orders in a timely fashion.”
Greg Porter, a principal of CFS said, “We really took the time to underwrite Rune NYC to understand where we could help Rune achieve its goals. We found the management team at both Rune and 12 ReTech to be very transparent and easy to work with. We are looking forward to a long-term relationship with both teams.”
Mr. Ponzetta concluded, “These new funding arrangements will allow our subsidiaries to grow and will reduce management’s reliance on convertible note financing to fund our technology and public entity expenses in the foreseeable future. This should over time reduce the ongoing effect of the dilution we have experienced and going forward, we hope to begin building shareholder value. We are continuing to pursue the completion of our Form S-1 to register shares for our $12 million Equity Line of Credit which is our long-term financing solution.”
About 12 ReTech Corporation:
At our core, we are a software company whose technology allows retailers to combat the dual threats of Walmart and Amazon — both online and in physical stores. Our microbrand rollup acquisition strategy allows us to demonstrate the effectiveness of our software, devise and test new products, while providing shareholder value through immediate revenue and earnings growth. The Company operates through our subsidiaries on three continents: 12 Hong Kong, Ltd., 12 Japan, Ltd., 12 Europe A.G., 12 Retail Corporation (and its subsidiaries in North America, including Emotion Fashion Group, Inc., Red Wire Group, LLC and Rune NYC, LLC). For more information please visit our website at www.12ReTech.com.
12 ReTech Corporation is publicly listed on the OTC Markets under the symbol RETC.
About Capital Funding Solutions, Inc.:
When you work with Capital Funding Solutions (CFS), you are working with a company that prides itself on the guiding principles of character and honesty. We will strive to find the best and most effective financial solution for your business. CFS is a partner in your long-term success.
We are a direct lender of accounts-receivable financing. Through our partners, affiliates and network of lenders, we directly fund and generate financial products and packages for a wide variety of businesses and industries.
The owners of CFS are entrepreneurs who come from private industries and understand the needs of today’s businesses. Whether you are a start-up, a growing business or an established entity looking for a new funding source, we can help you.
We look at and evaluate the business as a whole, the products or services being delivered, the transactions being financed and the credit quality of the buyer. If it all makes sense, we will fund the deal.
We understand how difficult and time consuming it can be to find the right lender, and that is why we have simplified the process. If we are not the right fit, we’ll let you know and we will give you alternatives to evaluate. If someone else has a better product or program, we will match you with the ideal funding solution.
Bottom line, we will let you know as soon as possible so that you can take care of your business. If you are tired of the runaround, give us a call at 877-545-1311 and we’ll give you a prompt and straight-forward answer. Visit our website at www.cfsfunds.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.