Here to Serve Holding Corp. to Acquire DCE Construction, Inc., dba Mesa Garage Doors, in Transformative Share Exchange Agreement

Rhea-AI Summary

Here To Serve Holding Corp. (OTC PINK:HTSC) has entered into a definitive Share Exchange and Reorganization Agreement to acquire DCE Construction, Inc., doing business as Mesa Garage Doors. The acquisition is expected to close in November 2023. Key highlights include the issuance of 1.4 billion restricted shares of HTSC common stock to MESA shareholders, the appointment of Dwight Esnard as HTSC's new CEO, and the spin-out of HTSC's legacy business into a separate public entity.

Positive

• HTSC is acquiring Mesa Garage Doors, a leader in home improvement solutions, which could lead to significant growth and fortify HTSC's market position. MESA has an enterprise value of approximately $41 million and is projected to achieve revenue of approximately $23.5 million for 2023. MESA also has plans for diversification and growth through strategic acquisitions.

Negative

• None.

ANAHEIM, CA / ACCESSWIRE / October 26, 2023 / Here To Serve Holding Corp. (OTC PINK:HTSC) (the "Company" or "HTSC"), is pleased to announce that it has entered into a definitive Share Exchange and Reorganization Agreement for the acquisition of DCE Construction, Inc., doing business as Mesa Garage Doors ("MESA"), a Southern California-based leader in home improvement solutions focused on the sale, service and installation of garage doors, entry door and custom gates. Subject to satisfaction of certain closing conditions, the acquisition is expected to close in November 2023.The agreement marks a significant milestone for both companies as they prepare to embark on a new chapter.

Below are some key highlights of the transaction:

1. Share Acquisition: At closing, HTSC will acquire all outstanding shares of MESA in exchange for the issuance of 1.4 billion restricted shares of HTSC common stock to the shareholders of MESA in a tax-free reorganization.

2. Preferred Stock Acquisition: At closing, MESA's shareholders will also purchase all Series A and Series C Preferred Stock of HTSC, all of which are held by an affiliate of HTSC.

3. At closing, HTSC's current officers will resign, and Dwight Esnard (CEO of MESA) and Michael Layman (CFO of MESA) will be appointed as HTSC's new CEO and CFO, respectively.

4. At closing, HTSC's current directors will also resign, and MESA's directors, Dwight Esnard and Michael Layman will be appointed as the sole members of HTSC's board.

5. Ownership Equalization: At closing, Paul Riss, CEO of HTSC, will receive an additional 43,200,000 shares of HTSC common stock as consideration for the cancellation of certain debt owed to Mr. Riss, maintaining a 4% total ownership stake in HTSC post-closing. Pursuant to the agreement, dependent upon the value of HTSC's common stock one year from the closing date, Mr. Riss may also be entitled to receive certain additional shares of HTSC common stock.

6. Spin-out of Legacy Business: In connection with, and as promptly as possible after closing of the MESA acquisition, it is anticipated that HTSC's legacy business and subsidiaries will be spun-out into a separate public entity to the holders of HTSC's common stock as of a record date prior to closing of the acquisition. The Company has filed the necessary Issuer Company-Related Action Notification with FINRA in connection with the spin-out, seeking a record date of November 2, 2023. Details regarding the anticipated spin-out will follow in a separate disclosure.

7. After closing of the MESA acquisition, the Company will promptly file an Issuer Company-Related Action Notification with FINRA to complete a name and ticker symbol change to better align HTSC's name with its new business.

Until the MESA acquisition closes, HTSC and MESA will remain separate, independent companies and will operate as such.

Executive Commentary:
Paul Riss, outgoing CEO of HTSC, stated, "This strategic transaction with MESA fortifies our market position and sets the stage for significant growth. I am confident that Dwight Esnard, our incoming CEO, will steer the Company to unprecedented success."

Financial Valuation and Outlook:
MESA obtained an independent valuation as of July 31, 2023 showing that the company has an enterprise value of approximately $41 million. MESA generated unaudited gross revenue of approximately $20.3 million for the year ended December 31, 2022, and is on track to achieve revenue of approximately $23.5 million for the year ended December 31, 2023. By 2025, MESA projects a revenue target of $30 million, with a 10% year-over-year growth rate anticipated for 2026.

MESA Operational Enhancements:
Technological upgrades and workforce training have improved closing ratios, while a high-impact marketing campaign has boosted average sales and appointment success rates. MESA has plans to horizontally diversify into other home improvement areas in addition to garage door installation/repairs, as well as grow through an aggressive M&A campaign of strategically aligned businesses throughout the US.

Financial Audits and Transparency:
MESA is currently undergoing a two-year audit by a PCAOB-registered audit firm that is expected to be complete in the near term. HTSC has had a PCAOB audit for the past two years. The Company plans to register as a reporting company with the Securities and Exchange Commission after the audit work is completed.

Closing Remarks:
Dwight Esnard, incoming CEO, commented, "This agreement marks a pivotal moment for MESA as we transition into a public company. We are committed to delivering significant value to our stakeholders and believe we are poised for a period of dynamic growth and innovation."

About Here To Serve Holding Corp.
Here to Serve Holding Corp. ("HTSC") utilizes a two-pronged approach in its business strategy to profit from de-carbonization. It invests in properties containing metals for electric vehicle batteries, and it sells subscriptions for a real-time AWS-based software platform for electric building systems. One subsidiary, Fortune Nickel and Gold Inc. ("Fortune"), explores for battery metals. Fortune owns 190 mining claims in the mineral-rich Timmins Mining District in Ontario, Canada. It targets the growing demand for class one nickel from the electric vehicle battery sector. Fortune has received exploration permits to drill in the townships of Gowan, Beck, Ottaway and Lennox. A second subsidiary, ICF Industries Inc. ("ICF"), provides real-time energy measurement services to more than 100 building systems. Buildings and municipalities increasingly seek to take advantage of low carbon electric infrastructure. ICF provides the cloud-based measurement and reporting tools that allow buildings and communities to see the impact of their decisions to create a long-term low-carbon impact.

About DCE Construction, Inc. (dba Mesa)
Founded over 30 years ago, MESA (www.mesagaragedoors.com) is a Southern California leader in the otherwise highly fragmented business of sales, installation, and service for garage doors. Over these 30 years, MESA has serviced well over a half million customers utilizing its own staff of installers, technicians, and repair employees. With a strong reputation and extensive customer base, MESA has leveraged its financial strength, scalability, operations and service call center and professional management to become one of the largest garage door specialty companies in the United States. While MESA's current corporate name certainly implies garage doors, the Company has expanded over the years to include other related installations and services for entry doors, custom wood gates, and garage door openers and is planning additional expansion over the coming months.

Safe Harbor Statement
This release contains "forward-looking statements". Forward-looking statements also may be included in other publicly available documents issued by HTSC and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance.

Examples of forward-looking statements include, among others, statements relating to closing of the MESA acquisition and transactions contemplated thereby, the enterprise value of the Company post-closing, the Company's ability to successfully integrate the MESA business, the success of the Company post-closing, M&A related prospects for the Company post-closing, completion of the spin-out, changes to the Company's corporate name and ticker symbol, future sales, revenues, earnings, cash flows, results of operations, uses of cash, and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause HTSC's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but are not limited to economic conditions, changes in the laws or regulations, demand for HTSC's products and services, the effects of competition, and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this press release.

For more information about the Share Exchange and Reorganization Agreement or other matters related to Here To Serve Holding Corp. and DCE Construction, Inc., d/b/a Mesa Garage Doors, please contact:

Company Contact:
Paul Riss
CEO
paul@heretoserve.tech
855-464-2535

SOURCE: Here to Serve Holding Corp.

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FAQ

What is the acquisition agreement between HTSC and MESA?

HTSC will acquire all outstanding shares of MESA in exchange for 1.4 billion restricted shares of HTSC common stock. Dwight Esnard and Michael Layman will be appointed as HTSC's new CEO and CFO, respectively.

What is the valuation and revenue outlook for MESA?

MESA has an enterprise value of approximately $41 million and is projected to achieve revenue of approximately $23.5 million for 2023. They anticipate a revenue target of $30 million by 2025 with a 10% year-over-year growth rate for 2026.

What are MESA's plans for growth and diversification?

MESA plans to horizontally diversify into other home improvement areas and grow through strategic acquisitions of aligned businesses throughout the US.

What is the status of MESA's financial audits?

MESA is currently undergoing a two-year audit by a PCAOB-registered audit firm, and HTSC has had a PCAOB audit for the past two years. HTSC plans to register as a reporting company with the SEC after the audit work is completed.

Who will be the new CEO of HTSC?

Dwight Esnard, the current CEO of MESA, will be appointed as HTSC's new CEO.