Notice to Shareholders of Bantec Inc.

Rhea-AI Summary

Bantec, Inc. (OTCPINK: BANT) reported an operating profit of $102,000 for Howco in the first half of 2021, a notable turnaround from a $85,000 loss last year. Following the resignation of General Manager Matt Wiles, the company plans to potentially split Howco into two businesses. Bantec is also exploring franchise opportunities for Drone USA and the Bantec Sanitizing Mobile Franchise, with plans to begin marketing in New Jersey. Furthermore, the acquisition of a patent for a drone-operated delivery receptacle enhances its intellectual property portfolio, aligning with its strategy in the growing drone delivery market.

Positive

• Howco achieved $102,000 operating profit, reversing a $85,000 loss from last year.
• Potential separation of Howco into two businesses could optimize operations.
• Franchise opportunities in Drone USA and Bantec Sanitizing could expand revenue streams.
• Acquisition of a drone delivery receptacle patent strengthens intellectual property.

Negative

• Resignation of General Manager Matt Wiles may disrupt operations temporarily.
• -

LITTLE FALLS, N.J., June 8, 2021 /PRNewswire/ -- Bantec, Inc. (OTCPINK: BANT) ("Bantec" or the "Company")

Dear Shareholders,

I would like to share some of the exciting projects we are working on at Bantec. Below I discuss our businesses along with some new initiatives we are pursuing and considering.

Howco Distributing Co.

During the six months of 2021, Howco posted a $ 102,000 operating profit. This time last year, Howco posted an $ 85,000 operating loss. We are pleased with Howco's six-month performance. Recently, Matt Wiles, Howco's General Manger, resigned. We will miss Matt.  He decided to go back into manufacturing where he possesses a plethora of experience and ultimately feels more comfortable. We view Matt's departure as opportunity to cut costs at Howco.  Presently, two very capable managers run Howco. One runs the estimating and procurement department the other runs the logistics side of the business. Both are long term employees, and both have proven their worth time after time. Along these lines, we may separate Howco into two distinct businesses: Howco and Bantec Logistics. We believe the latter is a Franchisable entity. 

Drone USA

At Drone USA, we are considering making Drone USA a franchise. A Drone USA franchisee would sell drones, drone accessories, robots, training, certificates of authorization and waivers.  As the drone delivery package market grows, our  Drone USA franchisees could add drone package delivery services to their repertoire.   

Bantec Sanitizing Mobile Franchise

Both the Bantec Sanitizing Business Plan and Franchise Disclosure Document are complete.  Currently, we are finishing up the Franchise Operations Manual.  Following the Operations Manual's completion, we will finish the marketing portion and franchise landing website.  Once complete, we can begin selling in New Jersey which is a franchise non-filing state.  Then we will file in the adjacent states and begin selling as soon as possible.  Covid forever changed the way we look at cleaning; it is no longer "my desk is clean, or the carpet vacuumed" now it can be a matter of life or death.  Bantec Sanitizing embeds science in our cleaning process.  The science will protect our customers.  We take this seriously. Our customers' health and possibly their lives depend on it. 

Bantec Flooring

Currently, we are bidding industrial flooring projects.  Flooring ties in nicely with sanitizing.  Most flooring products are porous and allow microbes to settle in and make the floors difficult to sanitize.  Some of the products we offer are not porous and make sanitizing more effective.  This will probably be our next franchise.

Intellectual Property Portfolio

We intend to expand our intellectual property portfolio.  We recently acquired "a drone operated delivery receptacle receiving packages" patent.  The patent designed gates "are configured to open when a delivery drone is detected by a control unit of the delivery receptacle".  This patent constitutes one step on our path towards the drone delivery market that we know will be big.  In addition, we acquired dozens of domain names and initiated work on important trademarks.

Conclusion

Every initiative we pursue will fall under our overall corporate strategy:

"Bantec Inc, a product and service company, through its subsidiaries and divisions sells to facility managers, engineers, maintenance managers, purchasing managers and contract officers who work for Universities, manufacturers, hospitals, property managers, state governments and the US government. Our difference that matters consists of establishing lifelong customer and supplier friendships, responding immediately to our customers' needs, and providing products and services through a highly organized, technically trained, motivated and incentivized workforce."

Each new initiative will complement and add value to our existing businesses by providing a difference that matters to our existing and newly acquired customers.

Forward-Looking Statements

Certain statements in this press release may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of growth; and assumptions relating to the foregoing. Such forward-looking statements are generally qualified by terms such as: "plans, "anticipates," "expects," "believes," or similar words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. These factors are discussed in greater detail in our Form 10 filed with the U.S. Securities and Exchange Commission.

Michael J. Bannon
Chairman of the Board

Contacts:
Michael Bannon
Chairman & CEO
mike@bantecinc.com
(203) 410-8924

View original content:http://www.prnewswire.com/news-releases/notice-to-shareholders-of-bantec-inc-301307356.html

SOURCE Bantec Inc.

FAQ

What is Bantec's operating profit for Howco in 2021?

Bantec reported a $102,000 operating profit for Howco in the first half of 2021.

How did Howco's performance change compared to last year?

Howco's performance improved from a $85,000 operating loss last year to a $102,000 profit this year.

What are Bantec's plans for Drone USA?

Bantec is considering franchising Drone USA, which would include selling drones, accessories, and delivery services.

What is the significance of the newly acquired patent for Bantec?

The patent for a drone-operated delivery receptacle is a strategic asset, enhancing Bantec's position in the drone delivery market.

When does Bantec plan to start marketing their sanitizing franchise?

Bantec plans to begin marketing the Bantec Sanitizing Mobile Franchise in New Jersey as soon as the Franchise Operations Manual is complete.