Las Vegas, NV & Hong Kong, Jan. 14, 2019 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTCQB: RETC) announced today
that it has signed a definitive Exchange of Equity Agreement to acquire Salt Lake City, Utah based Red Wire Group, LLC (“Red Wire”)
in a stock for stock transaction. Closing is scheduled to occur before the end of this month.
Red Wire Group, LLC (“Red Wire”) is a profitable and efficient contract “Cut and Sew” manufacturer generating
significant revenue and is located less than 100 yards from the Company’s Emotion Fashion Group (“EFG”) facility. Red Wire Group
has maxed out its own existing facilities capacity and can benefit from the excess capacity that EFG currently possesses.
Angelo Ponzetta, 12 ReTech’s CEO stated, “We believe that Red Wire is very synergistic to our current EFG
operation. In addition to the revenue and profits that Red Wire brings to the group we add efficiency and expertise to continue to
drive down our production costs that began with our relocation of EFG from Los Angeles to Salt Lake City. This extra capacity and
efficiency will allow Red Wire to take on many more jobs that should catapult its revenue from its current $650,000 to three to
four times that annually, while increasing our margins.”
Hub Blanchett, President of EFG stated, “Being acquired by 12 ReTech was just the catalyst for future
acquisitions. I am thrilled to team up with Red Wire. Their production team is outstanding and will allow our team to focus on
revenue growth and delivery fulfillment.”.
Angelo Ponzetta, 12 ReTech’s CEO continued, “We have been working on this acquisition throughout the holiday
season and while we executed non-binding Letters of Intent we decided to wait until the signing of the Exchange Agreement to
announce this news as our past experience with acquisitions has taught us that Murphy’s law typically applies at the signed Letter
of Intent stage”.
Greg Haehl, Managing Member of Red Wire commented, “I am excited to become part of 12 ReTech team. Being a
technology expert myself, I have seen what they are doing to help retailers improve themselves. The technology that is available at
12 ReTech is very exciting and I plan to lend my own expertise to their efforts. At the same time, Red Wire’s capabilities will
help EFG’s own manufacturing floor operations and their extra capacity will allow us to substantially grow our own business.” He
continued, “I have seen first-hand the commitment and assistance the whole 12 ReTech Team brings to every acquisition and this
strongly influenced our decision to be acquired.”
Angelo Ponzetta added, “We have been informed that due to our current stock price OTC Markets intends to shortly
remove us from their QB group. They have indicated that once our stock reaches and maintains the mandatory $0.01 threshold price
for 10 days it’s a simple matter to regain the QB status. Historically, the QB designation hasn’t yet really benefitted our
investors but the reporting requirements which we maintain as a QB stock will continue to be maintained. We are optimistic that
with the important acquisitions we are closing, the investing public will view our Company more favorably and our stock should
respond accordingly, allowing us to be re-certified as a QB stock.
Angelo Ponzetta finished, “The target date for the completion of this acquisition is on or about January 23,
2019. The closing of this transaction is still subject to completion of due diligence and a few other details. Red Wire acquisition
coupled with EFG acquisition provides us with a strong operating base for additional acquisitions we hope to announce
soon.
About Red Wire Group, LLC
Red Wire Group's primary goal as an apparel and clothing manufacturer is to capture your vision and translate
that into a high quality sewn product. We have extremely skilled pattern-makers, graphic designers and production workers who work
together to produce the top clothing and sewn goods in the market.
WHAT DRIVES US
Red Wire Group is a group of designers and makers with a unified purpose. Seeing our client's products be developed is inspiring to
us and the products are inspiring to others. We thrive on creativity and feed off of the creativity of our customers and clients.
Our happiest moments are the reveals whether it is during a fit test or the presentation of a newly designed logo. These moments
are what we work for to make them amazing and memorable for our customers so that momentum can continue forward and reach all the
customers that purchase our final products.
THE RED WIRE GROUP CLOTHING FACTORY
Our factory is located near 33rd South and West Temple in Salt Lake City, Utah. We are working to offer a high-tech clothing
factory to apparel brands located in Utah and the surrounding states. A place where brand owners can visit and watch their clothing
being made.
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.). For more information
please visit our website at www.12ReTech.com.
12 ReTech Corporation is publicly listed on the OTCQB 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.
Investors Relations Contacts:
Mark Gilbert
Magellan FIN, LLC
mgilbert@magellanfin.com
317-361-2392 (USA)
Corporate Headquarters
investors@12ReTech.com
