It would be an exaggeration to call it the most nonsensical press release we have ever seen, but nonsense it certainly is. The company basically claims that it needs to grow to be listed on a major exchange, so it will be undertaking acquisitions and spinoffs. Unlike some of the other companies we’ve looked at, this one actually has a little revenue, but still, not much to speak of. There are certainly not a complex group of divisions begging to be spun off to unlock value. And we still don’t understand how spinning off divisions will help with asset growth. But, we guess that’s because its a “concept”:
Epazz, Inc, a leading provider of cloud based business software solutions announced today that the Company is effectively transitioning to a holding company. The key concept with the holding company is that businesses are acquired, developed and spun off with a dividend being paid to shareholders. At this time, Epazz, Inc. has multiple spin-offs and stock dividends in the process of being brought to completion. Upcoming announcements will detail the first spin-off and will name the second spin-off.
The company will be acquiring additional software companies to help grow our revenues and assets for a possible listing on a senior stock exchange.
Asset value is a key ingredient for listing on a senior stock exchange. For the year ended December 31, 2012 we had assets of $1,378,030 compared to assets of $1,035,222 for the year ended December 31, 2011, an increase of $342,808 or 33% from the prior period. Through acquisitions, Epazz management expects a similar or greater rate of growth through 2013 and beyond.
Epazz, Inc.’s CEO, Shaun Passley, said, “The holding company model is the best way to reward shareholders of our Company. We are aggressively pursuing additional acquisitions and have several spin-offs which we are working on and expect to begin announcing as early as this week. We are cleaning up the balance sheet and continuing to grow at the same time. I expect the remainder of 2013 and into 2014 to be a good time for shareholders of EPAZ.”
Epazz, Inc., a leading provider of cloud based business software solutions announced that for the year ended December 31, 2012 we had revenue of $1,193,217 compared to revenue of $735,972 for the year ended December 31, 2011, an increase of $457,245 or 62% from the prior period. The increase in revenues is mainly attributable to the sales generated by our newly acquired subsidiaries. Epazz also announced a 300 percent increase in its client base in 2012 and expects those numbers to continue to climb and that with the pending acquisitions expects revenues to double in 2013. Finally, Epazz reported that Project Flex, which is a patent pending new technology that will change the way cooling technology is used has passed all beta tests and is at the next stage which will lead to a spin-off of the new Company with a dividend being paid to shareholders.
So the company will acquire firms and then spin them off? Exciting! Lots of motion, sounds like three-card monty. We know better than to play games like that. All of the company’s growth numbers are the result of acquisitions and earnings numbers are conspicuously absent from this release. There is a vague teaser about a nebulous technology with a cool codename that will be spun off. That’s something, right?
The company calls itself “a leading provider of cloud based business software solutions”, but the only cloudy thing here is the company’s claims and promises. Move along, there is nothing to see here.
Disclosure: The author holds no position in any stock mentioned
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