GenTech’s SINFIT Acquisition Reports Tremendous Sales Growth in US as More Stores Come Online and New Worldwide Sales Contracts are Signed, Provides Guidance for 2020
NEW YORK, June 25, 2020 (GLOBE NEWSWIRE) — via OTC PR WIRE — GenTech Holdings, Inc. (OTCMKTS: GTEH) (“GenTech” or the “Company”), an emerging leader in the high-end Premium Coffee and Functional Foods marketplaces, is pleased to provide current and prospective shareholders with an update outlining the Company’s recent acquisition of Sinfit Nutrition (Sinfitnutrition.com) (“Sinfit”), a top-5 functional food brand currently sold in over 10,000 global physical and e-commerce stores across more than 10 countries around the world, including details related to GenTech’s successful initial month of operational control of the Sinfit brand.
David Lovatt, CEO of GenTech, stated “We spent months negotiating this deal to achieve best shareholder value possible. The deal was closed less than a month ago and we are already seeing incredibly strong International revenues. When the transaction closed, GenTech received c.$70k in accounts receivable, c.$70k in inventory, and more than $100k in packaging, as well as all customer relationships, IP, web presence, and goodwill in a deal that was cash only. The former owner trusted us to actualize the tremendous potential of the Sinfit brand and I am confident we will deliver on that trust provided. Our US sales team is just starting to ramp up, and our analysis suggests very promising signals from US distributors already very familiar with the brand as stores open back up and inventories are thin at best. I think I can already state that this was an extraordinarily productive use of $250,000 in cash to acquire SINFIT.”
Management importantly notes that the Sinfit brand brought in $2.2 million in revenues in 2019.
Also, in its release dated June 22nd, the Company announced that it was fielding international purchase orders of $80,000 from UAE and $70,000 from Singapore. Since that release, the Company is now fielding additional international purchase orders, including $50,000 from a Mexican distributor and $70,000 from a Canadian distributor.
The Company believes strongly in the functional foods market opportunity based on a number of powerful trends.
Functional food, defined as conventional and modified foods that include additional health benefits beyond basic nutrition, saw sales top $267 billion in February of this year on a global basis, with sales in the US reaching $63 billion, according to Euromonitor 2020. Global sales of organic food and drink topped $105 billion, up 6% in 2018 (Ecovia 2019). U.S. organic food sales reached $47.9 billion, up 5.9% in 2018 (OTA 2019). In 2019, 77% of U.S. adults used dietary supplements, an all-time high (CRN 2019). U.S. supplement sales are estimated to have reached $49.3 billion in 2019, up 6.2% (NBJ 2019).
“I think the majority of the investing public still do not fully appreciate the scale and trajectory in play right now in the functional foods market opportunity,” continued Lovatt. “It’s enormous, and only getting bigger every year. It’s also a tremendous sign that emerging markets in Asia are now the fastest growing regional markets for functional foods, with China leading the way. That suggests we have only just scratched surface in terms of where this is headed over the foreseeable future. And we now possess a true Top-five brand with an already established global network of distribution relationships.”
About GenTech Holdings, Inc.
GenTech Holdings, Inc. is a publicly traded company under the symbol GTEH. The Company launched a high-end Coffee Subscription service in early 2020 called Secret Javas and has recently closed on its acquisition of Sinfit Nutrition, which offers a range of high-end Functional Foods.
This press release may contain forward-looking statements, including information about management’s view of GenTech, Inc.’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of GenTech, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on GenTech’s future results. The forward-looking statements included in this press release are made only as of the date hereof. GenTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GenTech undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by GenTech.