Bantek, Inc. (OTC Pink: DRUS), formerly Drone USA, Inc., currently operates as a provider of drone programs to the US Government. Shares soared 128.57% through early trading on Friday, December 28, 2018. Over the past month, Bantek has seen an average daily volume of 34,363,231 shares. However, through Friday morning, already 209.96 million shares have traded hands, equating to $335,940 in dollar volume.
Shares surged Friday morning after Bantek announced that a subsidiary of Bantek, Inc., Howco Distributing, has received $1.6 million in contracts from the US Defense Logistics Agency. In addition, Bantek announced it is looking into secondary packaging options in Columbus, Ohio, which would help the current packaging operations in the mid-west and East Coast. Michael Bannon, CEO of Bantek, commented, “We are continuously exploring different ways to increase our sales with the U.S. government. When visiting Ohio, we paid a visit to a well-established and capable packing company that can help us more efficiently and at a lower cost package our mid-west and eastern supplier products.” Here is the full press release detailing the awarded contracts and potential expansion of packaging operations:
Bantek, Inc. Press Release:
Bantek, Inc. (OTCPINK: DRUS) (“Bantek” or the “Company”), a service provider and reseller of drones, insulation jackets and distributor of products to the U.S. Government, today announced that its subsidiary, Howco Distributing (“Howco”), received approximately 1.6 million in contracts in the last eleven days from the US Defense Logistics Agency. In addition, the Howco team visited Columbus, Ohio to explore using a secondary packaging option which will help us package our mid-west and east coast supplier products and visited with the Defense Logistics Land and Maritime contract post-award team and members of the small business administration office.
Michael Bannon, Bantek’s Chief Executive Officer, commented, “We are continuously exploring different ways to increase our sales with the U.S. government. When visiting Ohio, we paid a visit to a well-established and capable packing company that can help us more efficiently and at a lower cost package our mid-west and eastern supplier products. We were thoroughly impressed with their operation and we look forward to working with them.”
Matt Wiles, Howco’s COO stated, “We recently had an excellent visit with the DLA Land and Maritime in Columbus, Ohio including members of the post-award contract team, and members of the small business administration office. These meetings were productive and helped Howco understand how we can better serve the needs of the DLA and support our troops.”
Lindsay Somics, Howco’s Vice President of Business Development, stated, “During our recent trip to Ohio, we were informed that Howco had a best in class on-time shipping performance rating of 93.4% with the DLA. On-time delivery is something we pride ourselves on and as we grow, to make sure we continue with the pattern we have established we have enlisted a secondary packaging house to support our growing business. This will allow us to reduce freight costs and increase margins on items where we didn’t have a competitive edge.”
About Howco Distributing Co.
Howco Distributing, a subsidiary of Bantek, Inc., is a premier supplier of spare and replacement parts to a wide variety of Federal Government agencies, U.S. military prime contractors and commercial customers worldwide. Founded in 1990 and located in Vancouver, Washington, Howco’s services encompass bid solicitation, contract management, packaging and logistics for construction, transportation, mining and heavy equipment spare and replacement parts to customers worldwide utilizing a wide variety of supply chain solutions. Howco was the winner of 2017 United States Department of Defense Logistics Agency’s Commander’s Choice Supplier Award and the 2012 United States Department of Defense Logistics Agency’s Bronze Supplier Award.
About Bantek, Inc.
Bantek, Inc. (OTCPINK: DRUS), headquartered in Pine Brook, NJ., consists of three separate divisions. First, through Howco Distributing Co., we sell products primarily to U.S. Department of Defense. Second, through Drone USA we sell drone programs, which consists of drones, training, COA’s and waivers and other drone-related services, to law enforcement, firefighters, security companies, local, state and our US government. Third, we sell insulation jackets, slates, and insulation services to hospitals, universities, and manufacturers.
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of growth; and assumptions relating to the foregoing. Such forward-looking statements are generally qualified by terms such as: “plans, “anticipates,” “expects,” “believes” or similar words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. These factors are discussed in greater detail in our Form 10 filed with the U.S. Securities and Exchange Commission.
Article By: Andrew Rego