Acquisition and expansion into payment processing expected to close before May 31, 2024
NEWPORT BEACH, Calif., May 21, 2024 (GLOBE NEWSWIRE) -- Neon Bloom, Inc. (OTC PINK: NBCO), announced today that it has finalized the terms of its acquisition of Advanced Executive Sales, LLC (AES), a leading financial services company specializing in electronic payment and card processing for all types of businesses. The two companies expect to close on the acquisition by May 31, 2024.
After months of due diligence and negotiations between Neon Bloom and Mr. Greg Bauer, the Managing Member of AES, the two parties finally came to a mutual agreement as to the structure and consideration for the acquisition. As part of the final agreement, Neon Bloom will be appointing Mr. Bauer as a member of the Neon Bloom Board of Directors and an executive officer of both Neon Bloom and AES.
“This is the culmination of months of development of a new strategic business plan for us,” said Fred Luke, Neon Bloom’s Secretary and Director, “one that I believe will enable us to provide our shareholders with what they have been waiting for, strong revenue with earnings, and great growth potential. And there is potential constructive interaction with our current subsidiary, Bazelet Health Systems, Inc. (Bazelet™) in its efforts to grow and provide its customers with the added feature of secure payment, e-Commerce and Point of Sale solutions.”
AES is a rapidly growing, leading provider of e-Commerce and Point of Sale transaction solutions, which enable it to provide secure interactions between merchants and customers for a wide range of industries with its payment processing platform; it is a certified partner with YNLO Ultratech, Payshield and has over 100 e-Commerce sites currently under contract, with plans for near-term expansion with the acquisition of several other FinTech firms with payment processing technology which will complement that currently utilized by AES.
For the year ended December 31, 2023, AES had $23,235,048 in gross revenue with a net profit of $1,655,613; for the first quarter of 2024 AES posted gross revenue of $5,521,430 with a net profit of $395,408.
Mr. Luke went on to say, “This transaction, as envisioned, is expected to immediately begin generating positive cash flow, which will help us with our own ongoing administrative operations and, hopefully, generate enough working capital to help with the additional acquisitions that Mr. Bauer has been negotiating with for some time now.”
Commenting on the acquisition, Mr. Greg Bauer said, “Joining forces with Neon Bloom makes Advanced Executive Sales part of a publicly held company which should allow us access to sources of working capital - equity and debt - that we have not been able to access as a privately held enterprise. And with Fred Luke’s corporate stewardship and unique ability to structure acquisitions, I believe this is going to be a very good marriage.”
Under the terms of the final agreement, Neon Bloom will be acquiring all AES Membership Interests in a combination Common and Preferred Stock-for-Membership Interest structure, with plans to immediately convert AES from a Limited Liability Company to a Florida C-Corp resulting in AES becoming a wholly owned subsidiary which will continue to operate as “Advanced Executive Sales Inc.”
About Neon Bloom:
Neon Bloom, Inc. (OTC PINK:NBCO) is a diversified enterprise group, currently engaged in the development of new life-science technologies, technologically improved financial services, and other emerging business with potentially high growth and other cross-industry segment synergistic qualities. Beginning in 2020 the company began to expand its leadership team. In 2021 it acquired Bazelet Health Sales, Inc. (“Bazelet”) in an all-stock transaction, and currently operates Bazelet as a wholly owned subsidiary. With the pending closing of the acquisition of Advanced Executive Sales LLC the company is expected to have two active subsidiaries with annual revenues in excess of $20,000,000 and growing. The Company intends to make additional acquisitions in the near future utilizing shares of its common stock, non-convertible promissory performance-based notes, and cash as available.
About Bazelet Health Sales, Inc:
Bazelet™, is the licensed US plant patent, trademark, and manufacturer of PAN2020, the world's first patented cannabis plant (US Plant Patent number US PP32,725 P2). PAN2020 is a new and distinct variety of cannabis sativa (L.) plant and contains 0.00% tetrahydrocannabinol (THC), making it the first and only federally legal cannabis plant. With Pan2020, Bazelet developed the proprietary ingredient PECSA (Plant-based EndoCannabinoid System Activator), used in the manufacturing and commercial supply of food, drug, and cosmetic products that comply with the Food, Drug and Cosmetic Act. Neither the Company regarding the PECSA products; these products are not intended to treat, diagnose, mitigate, prevent, or cure diseases, nor do they have any therapeutic effect as to any specific medically diagnosed conditions.
Forward-Looking Statements:
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