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MIAMI, Aug. 01, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Next Group Holdings, Inc. (NGH) (OTCQB: NXGH), ("NGH" or the "Company"), a FinTech service provider delivering mobile banking, credit and telecommunications to the underbanked and underserved population, announced today the issuance of a shareholder update letter from its Executive Chairman and Chief Executive Officer, Arik Maimon.
Dear NGH partners and shareholders,
We wish to start by thanking our partners and shareholders for all your dedication and support. We strongly believe in our actions over the past two years and more specifically, recently, in building a strong and valuable company for the future.
These past two years have been extremely eventful and successful. Our restructuring and repositioning in 2016 & 2017 has led to solid growth in 2018, and has defined our innovation in both services and market positioning, establishing a strong outlook for our success towards the remainder of 2018 and beyond. To orchestrate the new phase of growth and opportunity, NGH's Board of Directors has unanimously voted to change the company's name to Cuentas Inc. due to the upcoming launch by us of the "Cuentas" brand of products and services. The name Cuentas and associated FinTech product branding provide an invitation and connection to Spanish speaking communities. "Cuentas" in Spanish means "Accounts". The official company's website is www.cuentas.com.
With Cuentas prepaid debit cards it's easy to shop online, pay bills and make everyday purchases. There is no upfront fee or credit check to order a card online, and no minimum balance required. Your money is protected against unauthorized transactions. You can manage your account online and track your spending 24/7 with our mobile app.
The company is expecting to reach 1 million customers during 2019 which would bring the total revenue for the group to $200 Million dollars.
An application has been submitted to FINRA to issue a new symbol along with a reverse share split to allow NXGH to meet the requirement to up list to NASDAQ.
We previously announced record revenue for fiscal year (FY) 2017 reaching more than $53.8 million, a more than 52-fold increase over revenue for FY2016. The gross profit for FY2017 was $2.4 million, versus a gross loss of $31,000 for FY 2016. The results for FY2017, which ended December 31, 2017, were included in the company's most recent Form 10-K. The Company's 2018-Q1 Report on Form-10Q reported revenues of $20.0 million compared to 2017-Q1 revenue of $0.5 million. Net Income before non-controlling interest for the three months ended March 31, 2018 was $1.5 million compared to a loss of $1.7 million for the same period in 2017.
Management has been focusing on improving the business units of the company and positioning for growth in underserved markets, while minimizing and retiring all convertible debt. The increase in revenue is mainly attributable to several acquisitions consummated by NXGH. The retirement of all convertible debt was a major stepping stone to improve the financial health of the company and protect its future value. The company currently has no convertible debt.
In March 2018, NGH entered into a Letter of Intent (LOI) with Cima Group (Cima), a global digital solutions provider and integrator, to acquire technology platforms from Cima's subsidiary companies Auris and Knetik, in exchange for a 25 percent equity stake in NGH based on a 50 Million Dollar valuation. We believe we have developed a leaner, more effective leadership and operational team with strong experiences in having successfully built software services and connection platforms. This will result in value creation for shareholders. We have streamlined our operations and processes and have seen the net positive effects throughout 2017.
NGH is currently anticipating capital raises, aggregating approximately $6-10 million based on NGH's valuation of 50 million dollars. This will address specific long-term strategies that we are executing, and, we believe, will establish NGH as a major player in this space.
We expect to be able to announce these initiatives over the next several weeks. We believe these fundamental plans will lead to increased long term shareholder value.
In addition, the capital raise will increase our shareholders' equity and is planned to result in meeting certain financial criteria for the Company'sup listing to NASDAQ.
Chief Executive Officer
Next Group Holdings, Inc. (OTCQB: NXGH)
About Next Group Holdings, Inc.
NGH is a corporation headquartered in Miami, Florida, which, through its operating subsidiaries, engages in the business of using proprietary technology and certain licensed technology to provide innovative mobile banking, mobility, and telecommunications solutions, including wireless MVNO, to underserved, unbanked, and emerging markets. For more information, visit www.nextgroupholdings.com.
Cautionary Note Regarding Forward-Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. The potential risks and uncertainties include, among others, that the reverse stock split may not have the intended benefits, that the Company may not meet applicable NASDAQ Capital Market requirements necessary for listing and/or NASDAQ may not approve the Company's listing application; and any capital raises.These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results, performance, prospects, and opportunities to may differ materially from those set forth in, or implied by, the forward-looking statements.
NGH Investor Relations:
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