Infrax Systems, Inc. Rescinds Acquisition of Mi Pulpe LLC

Rhea-AI Summary

Infrax Systems, Inc. (OTC PINK:IFXY) has terminated its Purchase Agreement with Mi Pulpe LLC due to the latter's inability to provide essential financial information for the quarter ending September 30, 2022. This decision follows the revelation of unfulfilled financial obligations that constitute a material adverse event not disclosed prior to the agreement. Consequently, IFXY will not report any financial results related to Mi Pulpe in its upcoming quarterly disclosure, which is expected to be filed within five days.

Positive

• None.

Negative

• Termination of the Purchase Agreement with Mi Pulpe due to undisclosed financial obligations.
• Potential revenue loss as financial results from Mi Pulpe will not be included in upcoming disclosures.

SPRING, TX / ACCESSWIRE / November 14, 2022 / Infrax Systems, Inc. (OTC PINK:IFXY) announced today that the company has received notice from Mi Pulpe LLC stating that it is unable to provide requested financial information for the quarter ended September 30, 2022, causing IFXY to terminate the Purchase Agreement with Mi Pulpe and rescind the acquisition.

Per the notice, subsequent to the execution of the Purchase Agreement for the acquisition of Mi Pulpe, Mi Pulpe was provided with notice of certain unfulfilled financial obligations constituting a material adverse event.

The existence of these obligations was not disclosed to IFXY management prior to the execution of the Purchase Agreement. Mi Pulpe's current situation is a material adverse event as described in the Purchase Agreement. As a result, IFXY has informed Mi Pulpe that it is terminating the Purchase Agreement and rescinding its acquisition of Mi Pulpe.

IFXY will file its quarterly disclosure statement for the period ending September 30, 2022, within five days. The Company's disclosure statements will not include any financial results pertaining to Mi Pulpe.

About Infrax Systems, Inc.

Infrax Systems, Inc. is a brand incubator and accelerator. The company plans to build a portfolio of revenue-generating product brands to develop new sales channels and increase brand awareness and revenues.

Contact Information:

https://twitter.com/InfraxInc
https://twitter.com/jpineda100

Shareholder/Investor inquiries for Infrax Systems, Inc.:

Infrax Systems, Inc.
1-888-204-4134
ir@infraxinc.com

Safe Harbor Statement: In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief, or expectations of the Company and members of its management team with respect to the Company's future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause these differences include, but are not limited to, failure to complete anticipated sales under negotiations, lack of revenue growth, client discontinuances, failure to realize improvements in performance, efficiency and profitability, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company's business units or the market price of its common stock. Additional factors that would cause actual results to differ materially from those contemplated within this press release can also be found on the Company's website. The Company disclaims any responsibility to update any forward-looking statements.

SOURCE: Infrax Systems, Inc.

View source version on accesswire.com:
https://www.accesswire.com/725428/Infrax-Systems-Inc-Rescinds-Acquisition-of-Mi-Pulpe-LLC

FAQ

Why did Infrax Systems terminate the acquisition of Mi Pulpe?

Infrax Systems terminated the acquisition due to Mi Pulpe's failure to provide requested financial information and undisclosed financial obligations that constituted a material adverse event.

What impact does the termination have on Infrax Systems' financial reporting?

The termination means that Infrax Systems will not include any financial results related to Mi Pulpe in its quarterly disclosure, which could impact revenue projections.

What is the next step for Infrax Systems after rescinding the Mi Pulpe acquisition?

Infrax Systems will file its quarterly disclosure statement for the period ending September 30, 2022, within five days, excluding any financial results pertaining to Mi Pulpe.