Upexi Provides Shareholder Update on Restructuring to Reduce Debt and Increase Working Capital
Upexi (NASDAQ:UPXI) has provided a shareholder update on its restructuring efforts to reduce debt and increase working capital. The company has eliminated $16.1 million in debt and accrued interest, added $7.4 million in cash to strengthen its balance sheet, and cut approximately $1.5 million in excess operational costs without affecting operations. Key transactions include:
1. Sale of E-core/Neti and Tytan Tiles, reducing debt by $12 million and increasing cash by $2 million.
2. Closure of two Las Vegas locations, reducing workforce by 30% and cutting annual costs by over $1.5 million.
3. Sale of Clearwater, Florida warehouse, eliminating $2.6 million in debt and adding $1.4 million in cash.
4. Sale of a wholly owned subsidiary for $4 million in cash, with potential for $2 million more in the next 15 months.
CEO Allan Marshall expressed confidence in the company's ability to focus on profitability and shareholder value moving forward.
Upexi (NASDAQ:UPXI) ha fornito un aggiornamento agli azionisti sui suoi sforzi di ristrutturazione per ridurre il debito e aumentare il capitale circolante. L'azienda ha eliminato 16,1 milioni di dollari di debito e interessi maturati, aggiunto 7,4 milioni di dollari in contante per rafforzare il proprio bilancio e ridotto di circa 1,5 milioni di dollari i costi operativi eccessivi senza compromettere le operazioni. Le transazioni chiave includono:
1. Vendita di E-core/Neti e Tytan Tiles, riduzione del debito di 12 milioni di dollari e aumento del contante di 2 milioni di dollari.
2. Chiusura di due sedi a Las Vegas, riduzione della forza lavoro del 30% e taglio dei costi annuali di oltre 1,5 milioni di dollari.
3. Vendita di un magazzino a Clearwater, Florida, eliminando 2,6 milioni di dollari di debito e aggiungendo 1,4 milioni di dollari in contante.
4. Vendita di una controllata interamente posseduta per 4 milioni di dollari in contante, con la possibilità di 2 milioni di dollari in più nei prossimi 15 mesi.
Il CEO Allan Marshall ha espresso fiducia nella capacità dell'azienda di concentrarsi sulla redditività e sul valore per gli azionisti in futuro.
Upexi (NASDAQ:UPXI) ha proporcionado una actualización a los accionistas sobre sus esfuerzos de reestructuración para reducir deuda y aumentar capital circulante. La empresa ha eliminado 16,1 millones de dólares en deuda e intereses devengados, añadido 7,4 millones de dólares en efectivo para fortalecer su balance, y reducido aproximadamente 1,5 millones de dólares en costos operativos excesivos sin afectar las operaciones. Las transacciones clave incluyen:
1. Venta de E-core/Neti y Tytan Tiles, reduciendo la deuda en 12 millones de dólares y aumentando el efectivo en 2 millones de dólares.
2. Cierre de dos ubicaciones en Las Vegas, reduciendo la plantilla en un 30% y recortando costos anuales en más de 1,5 millones de dólares.
3. Venta de un almacén en Clearwater, Florida, eliminando 2,6 millones de dólares en deuda y añadiendo 1,4 millones de dólares en efectivo.
4. Venta de una subsidiaria de propiedad total por 4 millones de dólares en efectivo, con la posibilidad de 2 millones de dólares más en los próximos 15 meses.
El CEO Allan Marshall expresó confianza en la capacidad de la empresa para enfocarse en la rentabilidad y el valor para los accionistas en el futuro.
Upexi (NASDAQ:UPXI)는 채무를 줄이고 운영 자본을 늘리기 위한 구조 조정 노력에 대한 주주 업데이트를 제공했습니다. 회사는 1,610만 달러의 부채와 발생 이자를 삭제했습니다, 740만 달러의 현금을 추가하여 재무 상태를 강화했습니다 그리고 약 150만 달러의 불필요한 운영 비용을 절감했습니다 운영에 영향을 미치지 않으면서. 주요 거래는 다음과 같습니다:
1. E-core/Neti 및 Tytan Tiles 판매, 부채를 1,200만 달러 줄이고 현금을 200만 달러 늘림.
2. 라스베가스에 있는 두 곳의 폐쇄, 인력을 30% 줄이고 연간 비용을 150만 달러 이상 절감.
3. 플로리다주 클리어워터의 창고 판매, 260만 달러의 부채를 삭제하고 140만 달러의 현금을 추가.
4. 전액 소유의 자회사를 400만 달러에 판매하며, 향후 15개월 내에 200만 달러를 추가로 받을 가능성이 있습니다.
CEO 앨런 마셜은 회사가 향후 수익성과 주주 가치를 더욱 강화할 수 있을 것이라고 확신한다고 전했습니다.
Upexi (NASDAQ:UPXI) a fourni une mise à jour aux actionnaires sur ses efforts de restructuration pour réduire la dette et augmenter le fonds de roulement. L'entreprise a éliminé 16,1 millions de dollars de dettes et d'intérêts accumulés, ajouté 7,4 millions de dollars de liquidités pour renforcer son bilan, et réduit d'environ 1,5 million de dollars les coûts opérationnels excessifs sans affecter les opérations. Les transactions clés comprennent :
1. Vente d'E-core/Neti et Tytan Tiles, réduisant la dette de 12 millions de dollars et augmentant les liquidités de 2 millions de dollars.
2. Fermeture de deux établissements à Las Vegas, réduction de la main-d'œuvre de 30 % et économies de plus de 1,5 million de dollars de coûts annuels.
3. Vente d'un entrepôt à Clearwater, en Floride, éliminant 2,6 millions de dollars de dettes et ajoutant 1,4 million de dollars en liquide.
4. Vente d'une filiale entièrement détenue pour 4 millions de dollars en espèces, avec un potentiel de 2 millions de dollars supplémentaires dans les 15 mois suivants.
Le PDG Allan Marshall a exprimé sa confiance dans la capacité de l'entreprise à se concentrer sur la rentabilité et la valeur pour les actionnaires à l'avenir.
Upexi (NASDAQ:UPXI) hat eine Aktionärsinformation über seine Umstrukturierungsmaßnahmen zur Reduzierung von Schulden und zur Erhöhung des Betriebskapitals bereitgestellt. Das Unternehmen hat 16,1 Millionen Dollar an Schulden und aufgelaufenen Zinsen eliminiert, 7,4 Millionen Dollar in bar hinzugefügt, um die Bilanz zu stärken, und etwa 1,5 Millionen Dollar an übermäßigen Betriebskosten gesenkt, ohne die Abläufe zu beeinträchtigen. Wichtige Transaktionen sind:
1. Verkauf von E-core/Neti und Tytan Tiles, wodurch die Schulden um 12 Millionen Dollar gesenkt und die liquiden Mittel um 2 Millionen Dollar erhöht wurden.
2. Schließung von zwei Standorten in Las Vegas, Reduzierung des Personals um 30 % und Einsparung von über 1,5 Millionen Dollar an jährlichen Kosten.
3. Verkauf eines Lagers in Clearwater, Florida, wodurch 2,6 Millionen Dollar Schulden eliminiert und 1,4 Millionen Dollar in bar hinzugefügt wurden.
4. Verkauf einer vollständig im Besitz befindlichen Tochtergesellschaft für 4 Millionen Dollar in bar, mit der Möglichkeit von 2 Millionen Dollar mehr in den nächsten 15 Monaten.
CEO Allan Marshall äußerte Vertrauen in die Fähigkeit des Unternehmens, sich zukünftig auf Rentabilität und den Wert für die Aktionäre zu konzentrieren.
- Eliminated $16.1 million in debt and accrued interest
- Added $7.4 million in cash to strengthen the balance sheet
- Cut approximately $1.5 million in excess operational costs without affecting operations
- Reduced workforce by 30% through facility consolidation
- Potential for additional $2 million in payments over the next 15 months from subsidiary sale
- Sale of multiple assets and subsidiaries to reduce debt
- Closure of two locations in Las Vegas
- Reduction in workforce by approximately 30%
Insights
Upexi's restructuring efforts appear to be a significant positive step towards improving its financial health. The company has successfully reduced its debt by
The operational cost reduction of
While the restructuring appears positive for short-term financial health, the long-term implications for growth and profitability remain uncertain. The company's pivot to focus on Contract Manufacturing, Logistics and select DTC businesses could lead to a more streamlined operation, but may also limit diversification benefits.
Upexi's restructuring strategy demonstrates a decisive shift towards financial stability and operational efficiency. By divesting non-core assets and consolidating operations, the company is streamlining its business model to focus on its most promising segments. This approach aligns with best practices for turnaround situations, potentially setting the stage for more sustainable growth.
The management's emphasis on profitability and shareholder value is encouraging, as it suggests a move away from growth-at-all-costs strategies that often plague e-commerce companies. However, the success of this pivot will depend on Upexi's ability to leverage its remaining assets effectively and capitalize on opportunities in high-growth sectors.
Investors should pay close attention to the upcoming Form 10-K and updated corporate presentation to gauge the company's new strategic direction and growth prospects in its core business segments. The ability to execute on this leaner business model while identifying new growth avenues will be important for Upexi's long-term success.
TAMPA, FL / ACCESSWIRE / August 5, 2024 / Upexi, Inc. (NASDAQ:UPXI) (the "Company" or "Upexi"), a multi-faceted Amazon and Direct-to-Consumer ("DTC") brand owner and innovator in aggregation, today is providing shareholders with an update on its restructuring to reduce debt and increase working capital through the sale of assets.
After the closing of several transactions since the nine month period ended, March 31, 2024, the Company has:
$16.1 million eliminated in debt and accrued interest$7.4 million in cash to strengthen the balance sheetApproximately
$1.5 million eliminated in excess operational costs, without affecting operations
Allan Marshall, CEO of Upexi, commented, "The Upexi management team has completed four major steps in the restructuring process. The corporate reset has positioned the Company to execute on its current business segments in Contract Manufacturing, Logistics and remaining DTC businesses in Pets, heath and CBD. While we have completed the majority of our short-term restructuring objectives, the significant reduction in debt and increase in working capital will allow management to continue to look at disruptive ways to grow in the short and long term. We now have the capital to operate and grow the organic business and be open to opportunities in high growth sectors to enter. I have full confidence that with the time and resources created by the reset, management can continue building the business with a focus on profitability and shareholder value."
Transaction Overview:
On August 1, 2024, the Company completed the sale of E-core/Neti and Tytan Tiles, reducing debt by approximately
$12 million and increasing cash by$2 million .In July, the Company completed the closing of two Las Vegas locations and transitioned the workforce to a single facility in Florida resulting in the reduction of workforce by approximately
30% and a reduction in annualized operational costs by over$1.5 million .On July 9, 2024, the Company completed the sale of its warehouse located in Clearwater, Florida, eliminating approximately
$2.6 million in debt and providing approximately$1.4 million in cash for working capital.On June 13, 2024, the Company completed the sale of its wholly owned subsidiary for immediate cash of
$4 million and additional payments up to$2 million in the next fifteen months.
Management expects to file its Form 10-K for the fiscal year ended June 30, 2024, in September and will provide a more detailed financial and business overview as well as a updated corporate website and investor presentation.
About Upexi, Inc.:
Upexi is a multi-faceted brand owner with established brands in the health, wellness, pet, beauty, and other growing markets. We operate in emerging industries with high growth trends and look to drive organic growth of our current brands. We focus on direct to consumer and Amazon brands that are scalable and have anticipated, high industry growth trends. Our goal is to continue to accumulate consumer data and build out a significant customer database across all industries we sell into. The growth of our current database has been key to the year over year gains in sales and profits. To drive additional growth, we have and will continue to acquire profitable Amazon and eCommerce businesses that can scale quickly and reduce costs through corporate synergies.
FORWARD LOOKING STATEMENTS:
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with business strategy, potential acquisitions, revenue guidance, product development, integration, and synergies of acquiring companies and personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward- looking statements. Although we believe that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Company Contact
Andrew Norstrud, Chief Financial Officer
Email: andrew.norstrud@upexi.com
Phone: (702) 332-5591
Investor Relations Contact
KCSA Strategic Communications
Valter Pinto, Managing Director
Email: Upexi@KCSA.com
Phone: (212) 896-1254
SOURCE: Upexi
View the original press release on accesswire.com
FAQ
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