UMAX Group Corp. – Completion of the Full Acquisition of Funny Media Group

Rhea-AI Summary

UMAX Group Corp. has successfully completed the acquisition of Funny Media Group, increasing its ownership to 100%. This strategic move, announced on April 14, 2022, utilizes Series B Preferred Stock to prevent immediate dilution of common shareholders. The acquisition involves an additional 1,000,000 shares issued, valued at enhancing the subsidiary's cash flow and revenue in the long term. CEO Mr. Fletcher highlighted plans for future acquisitions, including purchasing their headquarters for $2-3 million, aiming for robust growth in assets and market capitalization.

Positive

• Full acquisition of Funny Media Group strengthens UMAX's market position.
• Utilization of Series B Preferred Stock protects against immediate dilution for common shareholders.
• Acquisition expected to enhance revenue and cash flow from a growing library of comedic content.
• Future acquisition plans aim to bolster asset base and overall financial health.

Negative

• Dependence on Funny Media Group's profitability for two years may delay potential returns.
• The financial impact of the new acquisition may take time to reflect in UMAX's financial statements.

LOS ANGELES, CA / ACCESSWIRE / April 14, 2022 / UMAX Group Corp. (the "Company" or "UMAX" - Pink Sheets Alternative Reporting Pink: UMAX) - UMAX would like to announce that it has now completed the full acquisition of Funny Media Group, LLC ("Funny Media Group"), a Wyoming limited liability company, which is a Los Angeles based, talent agency and full-scale media production company that specializes in the development of comedy shows and music videos and albums.

Mr. Fletcher stated…" Acquiring the balance of the ownership equity of Funny Media Group was a smart move we have been considering since the Company initially purchase controlling interest. The library of comedic content that Funny Media Group continues to develop will only increase in value as its operations moves forward. In passing, this new transaction we completed was completed exactly like the initial transaction in May 2021 by using the use of our Series "B" Preferred Stock to not immediately dilute our Common Stock stockholders. It also contains the same contractual rider which states that the Series B Preferred Stock to be issued cannot be converted to the Common Stock of the Company for a period of two calendar years or Funny Media Group has four profitable consecutive quarters, whichever comes first. The purpose of this contractual rider is to guarantee that the holders of the Series B Preferred Stock from this acquisition cannot convert to common stock, which will dilute ownership of the current shareholders of the Company, until the subsidiary has added significantly to the top line revenue and is cash flow positive to UMAX which should allow for a stronger market capitalization."

In May of 2019, UMAX acquired operating control of Funny Media Group pursuant to an equity exchange agreement whereby it acquired 51.5% its outstanding equity in exchange for 5,000,000 shares of Series B, Preferred Stock of the Company. On April 13, 2022, the Company acquired the remaining 48.5% of Funny Media Group for an additional 1,000,000 shares of Series B, Preferred Stock of the Company making it a wholly owned subsidiary.

Mr. Fletcher (President and CEO of the Company), further states…" With the fiscal year end approaching for the Company on April 30th, we have decided to aggressively pursue various acquisitions to assist in the growth of our asset base and top line revenue over the coming year. With that said, we are currently starting negotiations to purchase the land and building on our Bay Avenue corporate headquarters in Los Angeles, California, which also houses our other subsidiary, Funny Media Studios, Inc. ("Funny Media Studios"). You can see the facility layout, equipment, and other amenities at the website for Funny Media Group. We anticipate the final purchase price for the Bay Avenue location to be between $2,000,000 USD to $3,000,000 USD. Hopefully we will be announcing this purchase some time in the next thirty to forty-five days. Our ultimate plan is to build a Company will both a strong balance sheet and income statement so that our market capitalization will grow accordingly for the benefit of our fellow shareholders."

About Us

UMAX Group Corp. is a Nevada corporation, is a public-quoted Pink Sheet issuer under the ticker symbol "UMAX". UMAX reports as an alternative reporting issuer with OTC Markets Group, Inc. and is current in its mandatory required filings (E.g., "Pink Sheet Current"). UMAX currently owns Funny Media Group, Inc. (Wholly Owned) and Funny Media Studios, LLC (Control Owned).

Disclaimer Regarding Forward Looking Statements

Certain statements that we make may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions.  In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would," as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties, and assumptions.  Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements.  We caution investors not to rely unduly on any forward-looking statements.

Company Information:

UMAX Group Corp.

2020 Bay Avenue

Los Angeles, California 90021

Website (FMG): https://funnymediagroup.com/

Website (FMS): https://BroadcastWest.com/

Instagram: https://www.instagram.com/funnymediagroupofficial/?hl=en

YouTube: https://www.youtube.com/c/FunnyMediaGroup

Jarod Ohi: http://www.jarodohi.com

Investor Relations: Jack Zietz

Email: investors@umaxgrpcorp.com

SOURCE: Umax Group Corp

View source version on accesswire.com:
https://www.accesswire.com/697466/UMAX-Group-Corp-Completion-of-the-Full-Acquisition-of-Funny-Media-Group

FAQ

What is the significance of UMAX's acquisition of Funny Media Group?

The acquisition enhances UMAX's market position and content library while preventing immediate dilution for common shareholders.

How many shares did UMAX issue for the acquisition of Funny Media Group?

UMAX issued an additional 1,000,000 shares of Series B Preferred Stock for the full acquisition.

What are UMAX's future acquisition plans?

UMAX plans to purchase its corporate headquarters, aiming to strengthen its asset base and revenue streams.

When did UMAX complete the acquisition of Funny Media Group?

UMAX completed the acquisition on April 14, 2022.

How does the acquisition affect UMAX's shareholders?

The use of Series B Preferred Stock helps to avoid immediate dilution for existing shareholders, benefiting their equity.