GEGI Announces Control Change, Business Acquisition, Divestiture, Debt Cancellations and New Management, Affirms More Diverse Business Strategies
Press Release | 01/17/2024
January 17, 2024
OTC Disclosure & News Service
Salt Lake City, UT —
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GEGI 01-17-24 - Changes.pdf
GEGI Announces Control Change, Business Acquisition, Divestiture, Debt Cancellations and New Management, Affirms More Diverse Business Strategies
SALT LAKE CITY, UT, January 17, 2024 Genesis Electronics Group, Inc. (OTC: GEGI) (the Company), announced that Travis T. Taylor has acquired voting control of the Company. In conjunction with this change in control, the Company acquired 235 Travel Stop, Inc., d/b/a Fifth Wheel Truck Stop. (Fifth Wheel), a Fresno, California, retail truck stop with annual revenues in excess of $11 million, divested itself of its Glid-related assets, which cancelled $2 million in debt and all shares of Series C Preferred Stock, completed an additional $575,000 in debt-to-equity conversions, and installed new management.
The Companys newly appointed CEO and Chairman of the Board, Travis T. Taylor, stated, Our team is extremely excited to embark on the journey ahead. The acquisition of the Fifth Wheel asset is the first of many anticipated acquisitions of similar assets across the country, which effort will be spearheaded initially by our Senior Vice President of Acquisitions, Steven Zabarsky. We believe these efforts will open up opportunities for us to add wholesale and retail assets in the renewable energy and emerging renewable technology markets. Mr. Taylor continued, From my experience in the finance industry, I believe that we have an ability to bring other cash-flow positive businesses within multiple target industry segments into the company, to grow our business organically and to achieve cash flow to the bottom line with every deal. We have a 2026 target of $100 million in company revenues, and we are committed to getting there and growing into our cap structure.
The Company also provided a further explanation regarding the transactions surrounding Mr. Taylors acquiring control. After nearly a year and a half of dedicated efforts, the Companys prior management had been unable to secure adequate funding, including through governmental and private-sector grants, needed to start, in earnest, the process of bringing the capital intensive Glid products to market. In light of those results, and given the extended period of limited liquidity in the micro-cap space, prior management determined it to be in the best interests of the Companys shareholders to bring a more broad-based, yet dynamic, business opportunity into the Company, along with a new highly-focused management group. Thus, the Glid-related business was divested by the Company. A more detailed description of the change-in-control-related transactions, including the acquisition of 235 Truck Stock for 25,000,000 shares of common stock, the Glid divestiture, which cancelled $2 million in debt and all outstanding Series C Preferred Stock cancellation, the additional $575,000 in debt-to-equity conversions and Series D Preferred Stock purchases by members of new management can be found in the Companys Supplemental Report filed with OTC Markets here.
Information Concerning New Management
Travis T. Taylor, CEO and Chairman of the Board, joins the Company with over 23 years of corporate experience, including the last 13 years as President of SpotOn Financial, a Colorado Springs, Colorado-based financial services company. Mr. Taylor has built his career in business development, business financing, and M&A activities. His prior experience has enabled him to provide financing to both public and private companies structuring financing ranging from simple to complex arrangements both in the United States and abroad. Mr. Taylor has built a reputation of being an innovator and his solid understanding of renewables and clear ability to explain these issues to shareholders, partners, and employees has him uniquely positioned to lead the Company forward.
Steven G. Zabarsky, Senior Vice President of Acquisitions and Board Member, is the former owner of Fifth Wheel. Mr. Zabarsky owned Fifth Wheel from January 2011 until the Companys recent acquisition of it. From May 2000 to 2011, Mr. Zabarsky was the owner/manager of Value Sports, a California-based operator of multiple franchise locations of Play It Again Sports, a retailer of new and used sports equipment. Prior to that endeavor, Mr. Zabarsky held executive positions in the financial services and communications industries. Mr. Zabarsky earned a B.A. Degree in Economics from the University of California, Los Angeles.
Eric Newlan, Vice President, General Counsel and Board Member, has, since 1987, practiced law in the North Texas area and is currently managing member of Newlan Law Firm, PLLC, Flower Mound, Texas, a firm engaged principally in the area of securities regulation. Since January 2020, Mr. Newlan has served as Vice President and Director of Black Bird Biotech, Inc., a publicly-traded company (symbol: BBBT) that is a purveyor of MiteXstream, an EPA-registered biopesticide, which he founded in 2018. Mr. Newlan earned a B.A. degree in Business from Baylor University, Waco, Texas, and a J.D. degree from the Washburn University School of Law, Topeka, Kansas. Mr. Newlan is a member of the Texas Bar.
