LAS VEGAS, NV / ACCESSWIRE / January 14, 2022 / UMAX Group Corp. (OTC PINK:UMAX), a Nevada corporation, has announced the acquisition of a California corporation, Funny Media Studios ('FMS'), a full-scale production studio with crew, equipment, and a shoot-ready soundstage in Los Angeles.
Rondell Fletcher (UMAX President and CEO) says that FMS will become a majority-owned subsidiary of the Company. Similar to the acquisition of Funny Media Group, LLC ('FMG') in May 2021, the Company negotiated the acquisition through the use of its Series 'B' Preferred Stock, Mr. Fletcher says.
'This assures that the current common stock shareholders would not experience any immediate dilution of their shares of Common Stock,' Mr. Fletcher says. 'Additionally, there is a contractual rider that states that the Series B Preferred Stock to be issued as part of this acquisition cannot be converted to the Common Stock of the Company for a period of two calendar years or FMS has four profitable consecutive quarters, whichever comes first.'
The purpose of this contractual rider is to ensure 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, Mr. Fletcher explains.
UMAX acquired FMS pursuant to an equity exchange agreement executed on Monday, January 11, 2022 (the 'Agreement'). Pursuant to this Agreement, the Company acquired 51% of all outstanding equity of Funny Media Studios (making it a majority owned subsidiary) in exchange for 1,500,000 shares of Series B, Preferred Stock of the Company.
'The acquisition of FMS goes hand-in-hand with our acquisition in May 2021 of Funny Media Group, LLC,' Mr. Fletcher says. 'Both operations work with each other on a myriad of projects. It was a natural acquisition for the Company as we move forward with our updated business plan.'
After these acquisitions, UMAX has now fully transitioned into comedy development as the vehicle to achieve a cash-flow positive operation and to provide the best return on shareholder's investment.
FMS is currently doing business under the dba Broadcast West. The facility is located at 5727 West Adams Blvd., Los Angeles, California 90016. FMS has a 2,600 sq.ft. soundstage, a full-scale gourmet kitchen set for television production, ample green screens, and a state-of-the-art media control room. The studio has current clients that include Fox, Bloomberg, and Comedy Central among others. It also is satellite-ready, and is frequently used for SMTs (Satellite Media Tours).
For more information on FMS, please visit: https://BroadcastWest.com/
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').
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UMAX Group Corp.
2020 Bay Avenue
Los Angeles, California 90021
Website (FMG): https://funnymediagroup.com/
Website (FMS): https://BroadcastWest.com/
Investor Relations: Jack Zietz
Email: [email protected]
SOURCE: UMAX Group Corp.
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