NEW YORK, Nov. 19, 2019 (GLOBE NEWSWIRE) -- Exxe Group, Inc. (OTC PINK: AXXA), a diversified company focused on synergistic acquisitions in real estate, sustainable technology, media, financial services and agribusiness, announced today strong year-over-year and quarterly financial results for the period ended September 30, 2019.
Revenue grew by a substantial 484% to $2,610,756 as compared with $448,021 for the same period last year. On a quarter-to-quarter basis, top-line rose by an impressive 117%, as compared with the June 2019 period. Operating income jumped by 31% to $245,921 versus $187,141 in the corresponding quarter in 2019. Net loss for the quarter was ($270,713), reflecting financing costs related to the series of acquisitions executed during the period. For the first six months of the fiscal year, Exxe Group recorded $3,826,192 in revenue and a net loss of ($1,007,092) versus $796,460 and net profit of $294, 830, for the same period last year, respectively.
While growth in revenue was diverse and across multiple holdings, the primary drivers of the sales growth included new holdings, including DHE Group, and the Company’s recently acquired agribusinesses, and others. Sales momentum is building rapidly in our key holdings and we expect to continue to generate significant gains in revenue for the quarter ending December 31, 2019, which will include additional acquired firms and cross-holdings sales. In addition, as the integration of the recently closed transactions continues, our gross and operating profitability will be favorably impacted as well due to cost-saving measures. We are also exploring alternative financing sources which could reduce our financing costs, thereby raising our overall profit profile.
Importantly, shareholder’s equity rose to $99,750,462 versus $37,753,734 in the corresponding quarter in 2018, a 164% increase. Moreover, shareholder’s equity jumped by 20% from the previous quarter. The shareholder’s equity figure is a key measure that demonstrates that the company’s aggressive, targeted acquisition and operations strategy is succeeding and its growth is accelerating. While integration of our new transactions are underway, management is committed to enter into new Letters of Intent during the current quarter and in 2020 in order to further penetrate and establish a large footprint in our targeted industries across the globe. As these transactions close, we will further increase our reach and enhance our overall financial performance.
During the September quarter, Exxe Group acquired a 51% interest in three agribusiness entities engaged in processing, storage, trading, transport, and logistics for $16,000,000, in exchange for an $8,000,000 three-year note and 4,000,000 Series C preferred shares. These entities accounted for roughly a third of total quarterly revenue along with modest profitability. We expect recent and pending transactions will have a material and positive effect on our financials for the current quarter and beyond.
During the September quarter, Exxe Group entered into a share agreement with its largest shareholder which has provided a very positive effect on our total share count. The shareholder agreed to convert 50 million common AXXA shares into Series B preferred on a dollar for dollar basis, thereby reducing shares outstanding by over 10%.
Separately, Exxe Group has elected to seek funding through the Securities and Exchange Commission (SEC) qualified Regulation A-plus (Reg A+) offering of common stock. Regulation A-plus IPO was promulgated into a law under Title IV of the Jobs Act 2012, which falls under the Securities Exchange Act of 1933. This allows companies in their early stages to seek investments from the public. Exxe Group plans to raise up to $3,000,000 in this offering, slated to commence this quarter.
Dr. Eduard Nazmiev, Ph.D., CEO, stated, “Exxe Group is proud of its high value shareholder’s equity and we appreciate the long term view in which many of our shareholders take with respect to our strategy. These factors, including the big gap between our market value and equity were key considerations as to why we expect to raise funds at a premium to our current share price. Moreover, we believe this approach will also limit the dilutive effect of a fund-raising event.”
About Exxe Group
Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, sustainable technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information go to www.exxegroup.com
CONTACT: Exxe Group IR: email@example.com
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