Endexx Reduces Liability While Restarting Sales Momentum
CAVE CREEK, AZ, April 04, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — Endexx, Inc. (OTC:EDXC) today released a special letter to shareholders regarding the 10K and recent major events in the hemp industry . Shareholder updates from CEO Todd Davis are included in full below.
The “Covid pandemic”, politics and conflict in Ukraine are in the daily headlines. Endexx remains committed and on track to achieve its long-term growth goals and initiatives through continued expansion to 20,000 food/drug/mass retail stores. Sales growth with better products and lower prices, supported by online marketing and sales growth, is the backbone of Endexx’s growth mandate. Based on the company’s current financials and compliance outlook, we are optimistic that we can now successfully apply for listing on the OTCQB markets, with a long-term initiative to become listed on the Nasdaq.
Endexx is in the business of hemp-derived products formulated to provide a better quality of life for the whole family, pets included. Coming out of two years of “pandemic” and in international chaos at the start of the year, Endexx’s business is more valuable than ever.
Recent bills proposed in Congress and the Senate, supported by ongoing shifts in public opinion, are paving the way for a viable and sustainable industry for CBD and hemp-derived products. Advertising and education restrictions are easing and the ability to gain full access to US-based financial banking services (Safe Bank Act) will unlock value and opportunities for industry success in the coming decade. Additionally, we have seen recent changes within the investment banking community showing strong interest in investing in companies like Endexx. Due to these shifts and trends, we believe the U.S. capital markets will soon lead to a paradigm shift in the outlook for the entire hemp and cannabis industries.
Endexx has been positioning itself as a thought leader and premium product innovator in the CBD/hemp industry for 8 years. By placing high-performing products in more than 20,000 retail stores nationwide, Endexx will position itself as a science-based market leader backed by high-quality, fully compliant products. Recent industry reports spanning the last six months clearly show that the current volume and sales of our balms and creams are trending towards the number one and two SKUs in top-tier national F/D/M stores. Month after month, sales increase and demand for products increases. When you combine that with the continued growth of our stores, it sets the stage for the revenue growth discussed last year. The market was disrupted by Covid, supply chain issues and personnel issues at all levels and delayed the achievement of our goals, but did not deter Endexx’s mission. We are convinced that reaching 20,000 stores and $50,000,000 in annual sales is a realistic goal.
In addition to our store growth, Endexx management negotiated lower interest rates on all of our current debt and significantly reduced overall derivative liabilities by 68%. Over the past 6 months, we have improved the balance sheet, setting the stage for eventual OTCQB qualification with the OTC markets.
‘The Big Shift’ – From the third to fourth quarter, sales increased by 364%. Why? How? ‘Or’ What? Endexx positioned high-quality products at a price that built customer loyalty and renewed sales in 4,000 F/D/M stores from July. As CEO, I’m proud of our teams, for working hard to rethink our marketing program and product positioning on the shelves and to establish a new plan for the online sales platform. Over the past 3 years, the focus has been on “distribution points” and number of stores. We haven’t forgotten the importance of online sales and we’ve nurtured it along the way. With changes in the legal landscape, we will increase focus in online marketing to drive e-commerce and support shelf placement at national retailers.
Political fallout and world events drive up the costs of everything. Endexx has boosted efficiency, reduced COGS, and delivered a higher quality product that drives more sales and improves customer retention.
By maximizing the potential of each store with our high-quality products, increasing the number of our stores and increasing our overall sales, our company will be a leader in the hemp-derived products industry.
Science has advanced the understanding of CBD and hemp-derived nutrients since the Hemp Pilot Program was launched in 2014. Consumer demand for natural products that potentially help relieve symptoms and improve the quality of life of their loved ones and their pets remains constant. The pandemic has accelerated market demand for knowledge and solutions that meet their needs. We believe that Endexx has been instrumental in providing solutions to this lawsuit.
Endexx was the 8th publicly traded company to enter the cannabis industry. A lot has changed since the start of 2013. After multiple waves of interest and excitement in the public markets, restrictions, lack of legislation and rules to follow have prevented the cannabis market from sustaining gains in long-term capital and growing infrastructure to support growth. When US-based investment banks are allowed to invest in and finance the cannabis industry, get ready to witness a great growth story in capital market history. Endexx has positioned the company to take full advantage of this wave. Our shareholding has grown from 2,000 shareholders to more than 11,000 today. We greatly appreciate the support of our investors and shareholders. Endexx is investing to expand its shareholder base and position the company as an industry leader and potential acquisition target.
Finally, updates found in previous news and investor presentations:
1) M&A Campaign: The company has participated in exploratory meetings aimed at further expanding its capabilities through acquisitions, potential mergers and joint ventures. Recently, we have seen potential opportunities that lead us to confidently believe that 2022 and 2023 will see significant expansion of our operations in key areas that are driving sales and revenue efforts.
2) OTCQB and NASDAQ Listing: The company has focused on improving all financial aspects and reducing liabilities, which improves the qualification measures for the OTCQB market. Additionally, we are in talks with mid to large sized banking institutions on a path to NASDAQ. Although we have important steps to take to be qualified, we believe that we are taking the right steps to prepare an application at the top of the list.
3) Target of 20,000 stores: In the first quarter, we announced the expansion into 2,800 new stores carrying our products. We have gone over the last six months from 3800 to 6600 F/D/M stores. Our staples and new Blesswell™ line can be purchased at America’s two largest drugstore and health store chains, online and at select stores like CVS Pharmacy and Walgreens (see store locator for availability) . Retail buyers are back and readying their planograms and new product placements for late 2022 and 2023 now. Endexx has two of the top selling products in the US and F/D/M buyers are taking notice.
Thanks for your help. Please know that management and the independent Board of Directors remain committed to working every day to achieve our business and corporate goals.
CEO and Chairman of the Board
www.endexx.com & www.cbdunlimited.com
About Endexx Corporation
Endexx Corporation, through its CBD Unlimited operating division, develops and distributes all-natural CBD products derived from the cannabis sativa-L (hemp) plant, containing less than 0.01% THC. Its products range from oils, capsules, topicals, and pet products, all with the common goal of pain relief and therapy for humans and pets. Phyto-Bites are CBD chews for animal use that are formulated to promote health and help reduce separation anxiety, pain and inflammation. The science behind these products involves over half a decade of clinical field research and laboratory work to provide precision in dosage and delivery of optimal absorption per serving.
Safe Harbor Notice
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities, and are therefore forward-looking. Forward-looking statements include all statements that are not statements of historical fact regarding the current intention, belief or expectations of the company, its directors or its officers. Investors are cautioned that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those set forth in the forward-looking statements are risks and uncertainties associated with the company’s business and finances generally, including the ability to pursue and manage its growth. , competition, global economic conditions and other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements.
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