UMAX Group Corp. - Acquisition of Trucking Company - PRNewswire

LAS VEGAS, Feb. 1, 2021 /PRNewswire/ -- UMAX Group Corp. (the "Company" or "UMAX" - Pink Sheets Alternative Reporting Pink: UMAX) – UMAX and its wholly-owned subsidiary, Home Foam Corporation, would like to announce the acquisition of a Las Vegas, Nevada based trucking company, Mazuma Transportation Company.

Mr. Fletcher (President and CEO of the Company), states…"We are pleased to announce the acquisition of Mazuma Transportation Company based in Las Vegas, Nevada. Mazuma Transportation will be the second fully owned and operational subsidiary of UMAX. Similar to the acquisition of Home Foam in November of 2020, we negotiated the acquisition through the use of our Series "B" Preferred Stock so that the current common stock shareholders would not experience any immediate dilution of their shares of Common Stock. Additionally, similar to the Home Foam acquisition, there is contractual rider which 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 three calendar years or Mazuma Transportation has four profitable consecutive quarters, whichever comes first. The purpose of this contractual rider is to insure that before the holders of the Series B Preferred Stock from this acquisition can convert to common stock, which will dilute ownership of the current shareholders of the Company, the subsidiary has added significantly to the top line revenue and is cash flow positive thus supporting the financial fundamentals of its parent company, UMAX."

UMAX acquired Mazuma Transportation pursuant to an equity exchange agreement executed on Friday, January 29, 2021. Pursuant to this Agreement, the Company acquired all outstanding equity of Mazuma Transportation (making it a wholly owned subsidiary) in exchange for 1,000,000 shares of Series B, Preferred Stock of the Company. Mazuma Transportation will have the following twelve (12) vehicles on its balance sheet:

Four (4)          2020 Peterbilt Cement Mixer Truck
One (1)           2010 International Day Cab
One (1)           2017 Freightliner Super 10 Dump Truck
One (1)           2008 Peterbilt Cement Mixer Truck
Two (2)           2009 Kenworth Cement Mixer Truck
One (1)           2010 Cement Powder Trailer
One (1)           1999 Freightliner Box Truck
One (1)           2009 International Box Truck

Mr. Fletcher further stated…"The Mazuma Transportation acquisition is a great transaction for UMAX in that it adds over $1,300,000 to our balance sheet in hard assets with debt of less than $200,000. This acquisition follows our business plan of acquiring operational business that have both significant assets and revenue, are in an industry that we feel has significant opportunities to generate significant profit on an ongoing basis and has cross uses with other operational subsidiaries that UMAX will eventually acquire. In passing, we plan on the possibility of retrofitting several of our older cement mixer trucks to become dump trucks due to the extreme demand for the dump truck type vehicles."

Mazuma Transportation currently has the two 26's box trucks leased out to a shutter and coating companies in the Las Vegas area. Three of the seven cement mixer trucks are currently leased out to a cement delivery company in the Los Angeles, California area. The four new 2020 cement mixer trucks, the super 10 dump truck, the 2010 International day cab and powder trailer will be leased to a new cement ready mix company estimated to open on or around April 1, 2021 in the Los Angeles metropolitan area. The company plans to add trucks as demand requires. The Las Vegas area is currently experiencing a construction boom with Super 10 dump trucks in high demand and Amazon plans on expanding to eight (8) total fulfillment warehouses in Las Vegas, Nevada which will require outside trucking contractors like Mazuma Transportation to assist them in the delivery of consumer goods pursuant to profitable daily drive contracts. Mazuma Transportation plans to fill the needs of both the Las Vegas and Los Angeles Markets as need for commercial trucks continue to grow.

About Us

UMAX Group Corp. is a Nevada corporation, is a public quoted Pink Sheet issuer under the ticker symbol "UMAX". Currently, UMAX has two wholly owned operational subsidiaries, Home Foam Corporation (Nevada Corporation) and Mazuma Transportation Company (Nevada Corporation). Home Foam which specializes in architectural foam (EPS) design products. This includes columns, caps, bases, medallions, railings, balconies, balustrades, shutters, window trims and sills, crown moldings and interior & exterior moldings. Additionally, they provide ornamental foam pop-outs such as window treatments for outside of new homes for stucco subcontractors and plaster companies. Additionally, Home Foam cuts foam for packaging inserts for shipping companies as well as geo-foam for highway and road development. The company also manufactures shutters for some of the largest regional home building companies for newly constructed residential homes. The company currently operates a 12,500 square foot warehouse located in Las Vegas, Nevada. The warehouse provides services for over 50 customer and currently has 13 full-time employees. Home Foam has plans to participate in the home building market in the Southwest Unites States during calendar year 2021. The company will eventually develop its own patented building system using EPS Foam products and a patented stucco-based coating. The coating insures higher R-values factors than traditional wood-built residences thus lower energy monthly cost. The company is also continually searching for companies that would expand the footprint in the home building industry for partnerships of acquisition. Mazuma Transportation specializes in the commercial transportation and delivery of cement, dirt, and consumer goods.

Forward Looking Statement

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 and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission from time to time, including our most recent Annual Report and subsequent Flings, which are available on Otcmarkets.com. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events or otherwise.

SOURCE UMAX Group Corp.

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