$COHO Crednology Holding Corp Nearing Completion of New Acquisition
By Michael Luke - May 16, 2018277
We always like to include a rundown of company’s that are new to the pages of Street Register, and Crednology Holding Corp (OTCMKTS: COHO) qualifies today. COHO is engaged in the cloud computing segment of the tech sector as well as Electronic Waste and Recycling. Its main products and services include cloud computing, disaster recovery, and various other managed corporate services, as well as the recycling and disposal of E-Waste.
COHO’s Private Cloud solution provides a fully working environment through its data centers located around the US, as well as real time redundancy and replication of the client’s data to eliminates loss of data and minimize down time close to zero. Cloud Computing as an industry is experiencing rapid growth of over 20% per annum. E-Waste is also growing at a significant pace with double digit increases anticipated annually over the next few years.
This week, Crednology Holding Corp (OTCMKTS: COHO) filed its financial statements for the 1st quarter, (3mo. Period ending on 03/31/18), and while the Trump Administration’s trade conflicts with China resulted in a temporary downturn in the e-waste recycling business, the company was able to offset the effects of that by cutting its expenses.
Orie Rechtman, CEO of Crednology Holding Corp. commented: “Although the year started slowly, business has improved significantly since the beginning of April, with a 60% increase in the E-Waste division’s revenues. We anticipate exceeding last year’s Revenues and EBITDA for the full year. The acquisition which we will close on May 31, 2018 will help improve our numbers. We continue to gain market share in our E-Waste as well as the cloud computing division. Our management strengths and our technological knowhow have helped us control our overheads resulting in lower selling, general and administrative costs. We continue to strive to achieve improved shareholder value.”(Source: Globe Newswire)
The acquisition to which Mr. Rechtman was referring was a company in the cloud computing business. Apparently, COHO has been negotiating the specifics of this transaction for quite a while and have finally agreed to terms.
Mr Rechtman commented, “I am excited to confirm that we have reached a final agreement on this transaction. We have been negotiating for some time but our due diligence process resulted in a very significant lowering of the purchase price. Last year the target company went through restructuring, after the company saw a significant reduction of revenues. This occurred due to their two largest clients, responsible for 70% of their total revenue, not renewing their contracts and bringing IT support in-house. We continued to watch the company making sure that the remaining revenues and client base were stable before we entered into a final agreement. We are confident we can increase the Company’s revenues by offering many of the added services we provide. Furthermore, the Company that has been in business for many years has a stellar reputation and together with our marketing efforts, we believe will result in the addition of more customers. We anticipate adding a minimum of $60-70,000 per year to our bottom line profit.” (Source: Globe Newswire)