AI Signal: Sign In to See
EDXC Releases Audited 10K Financial ReportApr 4th, 2022 8:30 EST
Endexx Reduces Liabilities While Rebooting Sales Momentum
CAVE CREEK, AZ, April 04, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Endexx, Inc. (OTC: EDXC) today released a special letter to shareholders addressing the 10K and recent major events in the hemp industry. The shareholder updates from CEO Todd Davis are included in their entirety below.
The “Covid Pandemic”, politics, and the conflict in Ukraine consume the headlines daily. Endexx remains driven and on track to achieving its objectives and long-term growth initiatives through continued expansion toward 20,000 Food/Drug/Mass retail stores. Driving sales with better products and lower price points, supported by online marketing and sales growth is the backbone of Endexx’s growth mandate. Based on current company financials and adherence to compliance, we are optimistic that we can now successfully apply for up listing to the OTCQB markets, with a long-term initiative to become Nasdaq listed.
Endexx is in the business of hemp derived products formulated to provide a better quality of life for the entire family, pets included. Coming out of two years of the “Pandemic” and into international chaos at the start of the year, Endexx’s enterprise is more valuable than ever.
Recent proposed bills in Congress and the Senate, supported by permanent shifts in public sentiment, are paving the way to a viable and sustainable industry for CBD and hemp-derived products. Limitations are easing in advertising and education and the potential to gain full access to U.S. based financial banking (Safe Bank Act) will unlock value and opportunities for the success of the industry in the decade to come. Additionally, we’ve seen recent changes within the investment banking community showing a strong interest in investments in companies like Endexx. Because of these changes and trends, we believe the U.S. Capital markets will soon drive a paradigm shift in the prospects of the entire Hemp and Cannabis industries.
Endexx has been positioning for the last 8 years as a thought leader and premium product innovator in the CBD/Hemp industry. Placing high performing products in 20,000 plus retail stores nationwide, will secure Endexx as a market leader built on a foundation of science and backed by fully compliant high-quality products. Recent industry reports covering the last six months clearly show current volume and sales in our balm and cream products are trending as number one and two SKUs in high-profile F/D/M national stores. Month after month, sales are increasing and product demand is growing. When you combine that with our continued store growth, that sets the stage for the revenue growth discussed last year. The market has been disrupted by Covid, supply chain issues, and staffing challenges at all levels and have delayed reaching our goals but has not deterred Endexx’s mission. We are confident that reaching 20,000 stores and $50,000,000 in annual sales is a realistic goal.
In addition to our store growth, Endexx management negotiated lower interest rates on all our current debt and reduced overall derivative liability significantly by 68 percent. During the last 6 months, we improved the balance sheet, setting the stage for a possible OTCQB qualification with the OTC markets.
“The Big Shift”- From Q3 to Q4 showed a 364% increase in sales. Why? How? Endexx positioned high quality products at a price point that has driven customer loyalty and repeat sales in 4,000 F/D/M stores beginning in July. As CEO, I am proud of our teams, for working hard to revamp our marketing program and product positioning on shelf and to establish a new plan for the online sales platform. The primary focus for the past 3 years has been ‘points of distribution’ and the store count. We have not forgotten the importance of online sales and have nurtured that along the way. With the changes in the legal landscape, we will increase concentration in online marketing to drive ecommerce and support shelf placement in national retailers.
Political fallout and world events are driving up the costs of everything. Endexx has been driving efficiency, lowering COGS and delivering a higher quality product which drives more sales and improves customer retention.
By optimizing the potential for each store with our high-quality products, growing our store count and increasing our overall sales revenue will put our company as a leader in the hemp derived product Industry.
Science has advanced the understanding of CBD and Hemp Derived nutrients since the launch of the Hemp Pilot Program in 2014. Consumer demand for natural products that potentially help relieve symptoms and improve the quality of life for their loved ones and pets remains constant. The pandemic has accelerated the market’s demand for knowledge and solutions that meet their needs. We believe Endexx has contributed greatly providing solutions to this pursuit.
Endexx was the 8th publicly traded company to enter the Cannabis Industry. A lot has changed since early 2013. After multiple waves of interest and excitement in the public markets, restrictions, lack of legislation and rules to comply with have prevented the cannabis market from sustaining long term capital gains and a growing infrastructure to support the growth. When the U.S. based investment banks are permitted to invest and fund the cannabis industry, prepare to witness a great growth story in capital market history. Endexx has positioned the company to fully capitalize on this wave. Our shareholder base has grown organically from 2,000 shareholders to over 11,000 today. We greatly appreciate the support our investors and shareholders provide. Endexx is making investments to grow our shareholder base and position the company to be an industry leader and potential acquisition target.
Lastly, updates found in previous news and investor presentations:
1) M&A Campaign: The company has been in exploratory meetings seeking to expand our capabilities further through acquisitions, potential mergers and joint ventures. Recently, we have seen some potential opportunities that lead us to believe confidently that 2022 and 2023 will result in a significant expansion of our operation in the key areas of focus that drive sales and revenue efforts.
2) OTCQB and NASDAQ Up-listing: The company has concentrated on improving all financial aspects and reducing liabilities which improves qualification metrics for the OTCQB marketplace. In addition, we are in talks with mid-tier to large banking institutions on a pathway to NASDAQ. While we have some significant milestones to reach to get qualified, we believe that we are taking the right steps in preparing for an up-list application.
3) 20,000 Store Count Objective: In Q1 we announced expansion into 2800 new stores carrying our products. We have grown in the last six months from 3800 to 6600 F/D/M stores. Both our core value products and our new Blesswell™ line can be bought in the two largest Pharmacy and Health store chains in America, online and in select stores like CVS Pharmacy and Walgreens (see store locator for availability). Retail Buyers are back and are now prepping their planograms and new product placements for late 2022 and 2023. Endexx has two of the top selling products in the U.S. and the buyers of F/D/M are noticing.
Thanks for your support. Please know that management and the Independent Board of Directors remain committed to working every single day to achieve our business and corporate objectives.
CEO and Chairman of the Board
About Endexx Corporation
Endexx Corporation, through its operating division CBD Unlimited, develops and distributes all-natural CBD products derived from the cannabis sativa-L plant (Hemp), containing less than 0.01% THC. Its products range from oils, capsules, topicals, and pet products, all with the shared purpose of therapeutic and pain relief for humans and pets. Phyto-Bites are CBD soft chews for animal use that are formulated to promote health and support the reduction of separation anxiety, pain, and inflammation. The science behind these products involves over half a decade of clinical research in the field and lab work to provide accuracy in dosage and delivery of optimal absorption per serving.
Safe Harbor Notice
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the company’s business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements.
Contact:For further investor and media information, contact:Endexx CorporationTodd DavisChairman & CEO[email protected]480-595-6900