Hawkeye Systems Provides Shareholder Update

Rhea-AI Summary

Hawkeye Systems, Inc. (OTCQB: HWKE) announced corporate updates aimed at expanding its footprint in pandemic management and PPE markets. CEO Corby Marshall emphasized plans for strategic acquisitions and increasing revenue streams. Key achievements include a Letter of Intent to acquire IKON Supplies, partnerships for manufacturing FDA-approved sanitizer and N95 masks, and a project to produce 5.4 million boxes of nitrile gloves annually. The company aims for an SEC-compliant status by mid-February 2021. Notably, a $9 million PPE order was canceled due to supply misrepresentation.

Positive

• Execution of a Letter of Intent to acquire IKON Supplies, enhancing PPE capabilities.
• Partnership established for FDA-approved sanitizer manufacturing.
• Exclusive license with DemeTECH for US-made N95 masks.
• Planned annual production of 5.4 million boxes of nitrile gloves, ensuring competitive pricing.

Negative

• Refund issued on a $9 million order due to supplier issues, impacting financials.

SAVANNAH, Ga., Feb. 4, 2021 /PRNewswire/ -- Hawkeye Systems, Inc. (OTCQB: HWKE), a technology holding company focused on pandemic management products and services, is pleased to provide the following corporate update to its shareholders.

 

 

Company CEO, Corby Marshall, stated, "We are excited to calibrate shareholders with our corporate mission to grow exponentially this fiscal year through strategic acquisitions and a variety of new and recurring PPE revenue streams. Additionally, we want to extend our appreciation for the support we received while navigating a very challenging pandemic landscape. While we are pleased with the achievements being highlighted here today, we are focused on increasing new opportunities to build financial strength as we execute our goal to realize a senior exchange listing later this year."

The Company has achieved a number of key milestones over the last six months, culminating with the completion of its fiscal year-end June 2020 audit and 10-K filing following the hiring of new CFO Chris Mulgrew. Most notable additional milestones achieved include the following.

1. Execution of a Letter of Intent (LOI) to acquire IKON Supplies, an FDA and CDC registered global trading company specializing in Personal Protective Equipment (PPE) supply chain management. Hawkeye management expects to complete the definitive agreement later this month.
2. Development and implementation of a seasoned production relationship with a reputable South Korean manufacturer to provide FDA Approved sanitizer, Kiil, at a reasonable price in a sustainable manner. Kiil is now sold on Amazon.com.
3. Development of an exclusive license with industry leader DemeTECH to provide US made, NIOSH approved, N95 masks which outperform foreign imports and provide the advantage of 100% US made, US sourced in a scalable, repeatable way regardless of government regulations regarding PPE (excise tax, foreign raw materials, PPE import blocks, etc.)
4. Development of a project to manufacture and control 5.4 million boxes of nitrile gloves per year at a price point which will remain competitive post pandemic. The Company is currently working to fund this project with viable financial partners to ensure it has reliable nitrile rubber supply given this is the rate limiting step in providing gloves globally at this juncture.

Marshall commented further, "Conjunctively, we have significant potential revenue events at various stages of completion, including both new organic sales opportunities and strategic accretive acquisitions. We are confident in our position to navigate the Company toward long-term shareholder appreciation while increasing our transparency and communication with shareholders. Management expects to become fully SEC compliant by the middle of February, with our 10-Q filings for the quarters ended September 30, 2020 and December 31, 2020."

Of note, for the recently reported three months and fiscal year ended June 2020, the Company received a payment for a $9 million order from a customer related to PPE that it had sourced from a supplier who misrepresented the product was in stock. Upon realizing the product would need to be manufactured, the Company required the customer to pull the order for which Hawkeye issued a refund.

About Hawkeye Systems, Inc.

Hawkeye Systems, Inc. is a technology holding company focused on cutting edge technology, pandemic management products and services. The Company is committed to leveraging its extensive resources in support of its ongoing mission to help our government and medical infrastructure keep civilians safe.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to the body camera system, the potential success of the body camera system, our growth strategy and product development including that of the body camera system, acquisition of Radiant Images, and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; our dependence on third-party suppliers and partners; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. Important factors that may cause the actual results to differ from those expressed within may include, but are not limited to: the success or failure of Hawkeye's efforts to successfully market its products and services as scheduled; Hawkeye's ability to attract and retain quality employees; the effect of changing economic conditions; increased competition; the ability of Hawkeye to obtain adequate debt or equity financing. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.

For more information, please contact:
Corby Marshall, CEO
Number: +1 (800) 531-8799
Email: info@hawkeyesystemsinc.com 
Website: hawkeyesystemsinc.com
Investor relations -  ir@hawkeyesystemsinc.com

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SOURCE Hawkeye Systems, Inc.

FAQ

What is the latest update from Hawkeye Systems (HWKE) as of February 2021?

Hawkeye Systems announced a corporate update focusing on growth through strategic acquisitions and revenue diversification in PPE markets.

What acquisition is Hawkeye Systems planning?

Hawkeye Systems has executed a Letter of Intent to acquire IKON Supplies, a PPE supply chain management company.

What new products is Hawkeye Systems introducing?

Hawkeye is launching FDA-approved sanitizer and US-made N95 masks, along with plans to produce nitrile gloves.

What financial challenges did Hawkeye Systems face recently?

Hawkeye had to issue a refund for a $9 million PPE order due to misrepresentation by the supplier.

When does Hawkeye Systems expect to be fully SEC compliant?

Hawkeye Systems anticipates full SEC compliance by mid-February 2021.