$GAXY Galaxy Next Generation Received $2.4 Million in Purchase Orders and Committments Over the Past Month Since the Initial Outbreak of COVID-19 in the U.S.
Monday, April 13, 2020 8:30 AM
TOCCOA, GA / ACCESSWIRE / April 13, 2020 / Galaxy Next Generation, Inc. (OTCQB: GAXY) ("Galaxy" or the "Company), a provider of interactive learning technology solutions, is pleased to provide a corporate and business update following the COVID-19 outbreak in the U.S. approximately a month ago.
Galaxy has received over $2.4 million in purchase orders and commitments for its interactive panels, intercom and audio technology solution products since the March announcement of the COVID-19 pandemic in the U.S. Galaxy has been able to source product both overseas and state-side to quickly fulfill the increase in orders.
Here is a recap of recently announced new business:
Valdosta City School District, Georgia for $350,000
Thomspn County School District, Colorado for $225,000
Newton County, Georgia for $200,000
Thompson County School District, Coloarado for $100,000
Stephens County, Georgia for $100,000
In addition, Galaxy also received a new purchase order from its OEM audio partner for approximately $1 million. The Company has laready begun the production of this classroom audio product and expects to fulfill and deliver in June.
Gary LeCroy, Galaxy's Chief Executive Officer, commented, "While school closures would seem to be a negative for us given that 95% of our business is selling into the K-12 school market, it has actually proven to be beneficial to us. Most schools would wait until the summer time to implement new technologies into their classrooms. However, given the fact that most schools have completely closed for the remainder of the school year, we are seeing a huge influx of new orders."
Magen McGahee, Galaxy's Chief Financial Officer, commented, "We understand our stock price has been negatively affected by debt converting into equity and being sold into the market in an aggressive fashion. With that said, we believe it is important for us to inform our shareholders about the business operations and sales of the company."
McGahee, concluded, "In mid-February, we received an additional equity financing from an existing shareholder in order to pay off some of the converting debt and were successful in eliminating approximately $500,000 worth of eligible convertible debt. Since the beginning of 2020, we have also eliminated an additional approximate $750,000 in debt with the debt converting into equity and being sold out into the market. This has led to an increase in the shares outstanding. We will continue to work through the debt that was brought on to get the Company to the point it is at now, including the recent acquisition from September 2019. We understand that this is frustrating to the shareholder community but will continue to make the best decisions we can in order to protect the investments of all."
