GenTech Announces Share Buyback Initiative & Reduces Authorized Share Capital

Rhea-AI Summary

GenTech Holdings, Inc. (GTEH) announced an 18% reduction in its Authorized Share Capital effective October 27, 2021. This decrease aims to limit further dilution for shareholders. The new Authorized Share Capital is now set at 33 billion shares. Furthermore, the company is initiating a share buyback program, initially authorized to repurchase up to 1 billion shares from December 1 to December 31, 2021. CEO David Lovatt stated significant growth is driven by their Reg A offerings, with plans for a further capital reduction in December depending on buyback outcomes.

Positive

• Reduction of Authorized Share Capital by 18%, limiting future dilution for existing shareholders.
• Initiation of a share buyback program for up to 1 billion shares, potentially enhancing shareholder value.

Negative

• None.

Wheat Ridge, Colorado , Oct. 27, 2021 (GLOBE NEWSWIRE) -- GenTech Holdings, Inc. (OTC Pink: GTEH) (“GenTech” or the “Company”), (a/k/a Supplement Group (USA) Inc.) (www.gentechholdings.com) an emerging leader in the Functional Foods (www.sinfit.com) and Nutritional Supplement (www.americanmetabolix.com) marketplaces, is pleased to announce that the Authorized Share Capital of the Company has been reduced by 18% effective as of today’s date as well as work commencing on share buyback initiative.

GenTech has an effective Reg A with a capital raise limit set at 40bn shares, but management states that they can hit their capital raise targets with a significant reduction in the Authorized Share Capital and have reduced the amount of shares available for further dilution of shareholders. Effective today, the Authorized Share Capital is now listed as 33bn shares, signaling an end to significant further dilution as management lays out a plan to further reduce the Authorized Share Capital in December 2021 and begins work on a share buyback initiative.

The Company will also begin a Share Buy Back Initiative with the Board initially authorizing the re-purchase of a maximum of 1bn shares of the Company’s common stock to be reviewed at the end of December 2021, based on results. The stock repurchase program, which starts on December 1^st and ends Dec 31^st, 2021, allows the company to repurchase its shares from time to time in the open market as well as in negotiated transactions.

David Lovatt, CEO of GenTech Holdings commented that “We have had an incredible growth year and that is fueled exclusively through the Reg A that we have had in effect since June 2021. We have had zero reliance on toxic funders and have reduced the debt on our balance sheet by well over $2m in 2021. Our expectations are being exceeded for retail interest, but with that success comes significant additional costs for placement in the stores to drive consumer uptake of the products. We now feel comfortable in capping out our funding raise abilities, but be clear, we will take further action in December to reduce the authorized share capital further, once we are able to judge the success of any share buyback transaction that occurs. 33bn is not the final number, a further reduction will be made at the end of the year.”

GenTech Holdings, Inc. recently applied to FINRA for approval on a Change of Corporation Name to Supplement Group (USA), Inc. which management anticipate will be granted and effective before the end of November 2021. No change to the Ticker has been requested and no other corporation action, such as a stock split, has been applied for or is anticipated by management in the near term.

There is no guarantee as to the number of shares that will be repurchased, and the repurchase initiative may be extended, suspended or discontinued at any time without prior notice at the Company’s discretion.

About GenTech Holdings, Inc.
GenTech Holdings, Inc. (a/k/a Supplement Group (USA) Inc., www.supplementgrp.com) is a publicly traded company under the symbol GTEH. The Company owns and operates leading functional foods brand, SINFIT Nutrition, which offers a range of high-end Functional Foods as well as American Metabolix, Inc. which provides a diverse range of Nutritional Supplements through its brands American Metabolix, Storm Lifestyles and Core Natural Sciences.

www.sinfit.com www.americanmetabolix.com www.stormlifestyles.com www.nxtbar.com www.naturesoothie.com www.swftstims.com www.yourganics.com www.mpbsnacks.com

Forward-Looking Statements
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.

Corporate Contact:
invest@gentech.group
www.gentechholdings.com

Public Relations:
EDM Media, LLC
https://edm.media

FAQ

What is the new Authorized Share Capital for GenTech Holdings (GTEH)?

The new Authorized Share Capital for GenTech Holdings is set at 33 billion shares after an 18% reduction.

What does the share buyback program for GTEH entail?

GenTech Holdings plans to repurchase up to 1 billion shares between December 1 and December 31, 2021.

Why did GenTech reduce its Authorized Share Capital?

The reduction aims to limit further dilution of shareholders and strengthen the company's capital structure.

When will GenTech Holdings begin its share buyback program?

The share buyback program will start on December 1, 2021, and end on December 31, 2021.

How does the reduction in Authorized Share Capital impact GTEH shareholders?

The reduction in Authorized Share Capital is expected to enhance shareholder value by limiting dilution.