GAXY identifies itself as a holding company. Their primary purpose is to acquire other struggling businesses at a steep discount. Their school product line appears to be an orchestrated front (most likely for tax purposes) to acquire these other businesses. Explains the continuous decline in share price (tax write off) for the company. Investors in their school product line services receive nothing in return from their investments but provide the company with cash to provide further acquisitions. Remember that the company paid $3,000,000 in CASH to acquire Interlock Concepts and Ehlert Solutions Group back in 2019.
Galaxy Next Generation, Inc. (OTCPK:GAXY) signed an agreement to acquire Interlock Concepts, Inc. and Ehlert Solutions Group, Inc. from Brad Ehlert for $4.4 million on September 3, 2019. The purchase price, subject to adjustment, to be paid as follows: (a) upon signing of agreement Brad Ehlert will receive 1.35 million shares of common stock of Galaxy; (b) as part of the closing the Galaxy shall deliver a promissory note in the amount of $1 million, subject to adjustment based on the successful completion of due diligence, and two other promissory notes in the amount of $1 million each; (c) (i) the second promissory note shall be adjusted based upon the gross revenues earned by Interlock and Ehlert from the date September 3, 2019 through August 31, 2020 and (ii) the third promissory note shall be adjusted based upon the gross revenues earned by Interlock and Ehlert from September 1, 2020 through August 31, 2021. On the completion, Interlock and Ehlert will be wholly owned subsidiaries of Galaxy. For the period ending June 30, 2019, Interlock Concepts and Ehlert Solutions together reported total assets of $0.85 million, Stockholders' Deficit of $1.2 million, revenues of $4.4 million, operating loss of $0.51 million and net loss of $0.51 million. As per the terms, Brad Ehlert shall resign for any and all officer and director positions on closing of the transaction. The transaction is subject to execution of employment agreement between Galaxy and Brad Ehlert. The transaction is expected to close in the end of September 2019. Galaxy Next Generation, Inc. (OTCPK:GAXY) completed the acquisition of Interlock Concepts, Inc. and Ehlert Solutions Group, Inc. from Brad Ehlert on September 4, 2019.
A holding company is a parent business entity—usually a corporation or LLC—that doesn't manufacture anything, sell any products or services, or conduct any other business operations. Its purpose, as the name implies, is to hold the controlling stock or membership interests in other companies.
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