UMAX GROUP CORP. – UMAX Announces Acquisition of Funny Media Studios
LAS VEGAS, NV/ACCESSWIRE/January 14, 2022/ UMAX Group Corp. (OTC PINK: UMAX), a Nevada-based company, announced the acquisition of California-based Funny Media Studios (“FMS”), a full-scale production studio with crew, equipment and soundstage ready to shoot in Los Angeles.
Rondell Fletcher (President and CEO of UMAX) states that FMS will become a majority-owned subsidiary of the company. Similar to the acquisition of Funny Media Group, LLC (“FMG”) in May 2021, the company negotiated the acquisition using its Series “B” preferred stock, Mr. Fletcher said.
“This ensures that current common stock shareholders will not experience any immediate dilution of their common stock,” Mr. Fletcher said. “In addition, there is a contractual addendum which provides that the Series B preferred stock to be issued in connection with this acquisition may not be converted into common stock of the company for a period of two calendar years or FMS has four consecutive quarters profitable, whichever comes first.”
The purpose of this contractual addendum is to ensure that the holders of Series “B” preferred shares resulting from this acquisition cannot be converted into common shares, which will dilute the ownership of the current shareholders of the Company, until that the subsidiary has added significantly to capital-line revenue and is cash flow positive, says Fletcher.
UMAX acquired FMS pursuant to a share exchange agreement signed on Monday, January 11, 2022 (the “Agreement”). Pursuant to this agreement, the Company acquired 51% of all outstanding shares of Funny Media Studios (making it a majority-owned subsidiary) in exchange for 1,500,000 shares of Series B, preferred stock of the Company.
“The acquisition of FMS is consistent with our May 2021 acquisition of Funny Media Group, LLC,” Mr. Fletcher said. “The two operations are working together on a myriad of projects. This was a natural acquisition for the Company as we move forward with our updated business plan.”
After these acquisitions, UMAX has now fully shifted to developing comedy as a vehicle to achieve a cash flow positive operation and provide the best shareholder return on investment.
FMS currently operates under the dba Broadcast West. The facility is located at 5727 West Adams Blvd., Los Angeles, CA 90016. FMS is 2,600 square feet in size. a sound stage, a full-scale gourmet kitchen for television production, large green screens and a state-of-the-art multimedia control room. The studio’s current clients include Fox, Bloomberg and Comedy Central, among others. It is also satellite ready and is frequently used for SMT (Satellite Media Tours).
For more information about FMS, please visit: https://BroadcastWest.com/
UMAX Group Corp. is a Nevada corporation, is a publicly traded Pink Sheet issuer under the symbol “UMAX”. UMAX reports as an alternative reporting issuer to OTC Markets Group, Inc. and is current in its required mandatory filings (eg, “Pink Sheet Current”).
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UMAX Group Corp.
2020 Bay Avenue
Los Angeles, California 90021
Website (FMS): https://BroadcastWest.com/
Investor Relations:Jack Zietz
E-mail: [email protected]
THE SOURCE: UMAX Group Corp.
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