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TOCCOA, GA / ACCESSWIRE / January 19, 2021 / Galaxy Next Generation, Inc. (OTCQB:GAXY) ("Galaxy" or the "Company), a provider of interactive learning technology solutions, is pleased to provide the following Shareholder Update Letter.
It is a top priority for management that we continue to actively communicate with our shareholders and the Wall Street community. With the Company evolving and expanding so rapidly, we have summarized some exciting events that took place over the last few months or are currently in the works that we believe will positively influence the direction of the Company.
One of the most significant milestones has been the successful completion of our first purchase order ever received from an OEM partner. Prior to developing and manufacturing audio equipment for other companies, we were only developing for our own ‘G2' brand. This new opportunity to manufacture products for others is a major step in accelerating our revenue growth, as we will not be solely dependent on our channel size and customer base for these particular products. A successful OEM channel takes potential competitors and turns them in to Galaxy customers.
Another important catalyst for the Company was the elimination of all remaining variable rate convertible debt and a more recent fixed priced equity investment from an institutional investor that is only eligible for sale under Rule 144 in six months. In the early stages of the Company, there was a lack of quality capital, so we were forced to take on some convertible ‘toxic' debt that caused a strain on the stock price and dilution that was greater than expected. We are truly pleased to begin 2021 with all of that convertible debt eliminated and move forward with a clean slate. We are equally pleased to have the new equity investor as a "partner" in financing for the Company with a structure that allows the Company to better control the timing, dilution and pricing in which equity is purchased. Moving from debt to equity is something that was necessary to reach our goal of up-listing to a national U.S. exchange.
We have worked diligently to clean up our marketing message so that our customers, as well as the market, are more aware of our capabilities. We have an extensive product offering so it has been a challenge to express how important each component we develop or provide actually is. We are not just a "school" company because many of our products fit in to all other verticals where any presenting environment is needed, or emergency messaging may be necessary. We are not just a "Covid-19" company, but we do offer products for PPE specifically designed for schools and online learning software to assist in the lock down periods our customers have experienced. We aren't just a "brand" anymore either as some portion of our revenues are now coming directly from sales made by other companies and their brands, that we are manufacturing products for. But, what I can say that we are, is all of the above, with the ability to continuously adapt, develop, and grow to meet our customers' needs and meet our shareholders expectations.
The most recently filed S-1 Registration Statement (previously outlined in the 8K filed on January 5, 2021), upon effectiveness, provides us available equity up to $10 million. We are viewing this equity instrument as a "financial security blanket" to move forward with our business growth plan. The addition of Mr. Brinkman (previously highlight in a press released dated December 14, 2020), has brought structure to our sales organization and as such, we currently have 3 open sales positions for regional sales managers. This will allow us to focus geographically on new territories where there has been growing demand for our products. We believe a local presence will materialize into triple the sales we are currently able to capture with the limited personnel we have had in the past.
This availability of additional growth capital enables us to focus more on sales and marketing efforts as it will give us the freedom to make sure product inventory and manufacturing cost are not hindering us from capturing as many customers as possible for fear of not being able to meet expected timelines. With the new stimulus package focusing so much on schools' need for not only PPE materials but technology to support their return to the classroom, we want to make sure we are in a position to deliver not only all the products suggested under the "stimulus guidelines" but deliver them quickly with inventory in hand at all our locations across the U.S.
As our business continues to transform, we feel the need to be a bit protective of our new clients, partners, and opportunities. In many past press releases, we disclosed names of our partners or clients, who were then overwhelmed with inquisitive phone calls and/or emails from shareholders. We promise to keep you, our shareholders, as informed as much as possible about our growth and new business opportunities without jeopardizing our relationships. Additionally, we continue to grow our OEM channel, with a lot of these larger annual contracts for manufacturing being held to certain confidential standards, and we will protect those rights of our customers, while still making sure any material contracts are reflected in our quarterly and annual financial reports.
We will continue to prepare ourselves and the Company for the next level, with accretive acquisitions, and a focus on organic growth. I believe that the majority of our shareholders believe in what we are thriving to achieve and with your help, we will accomplish all of our goals. This past quarter ended December 31, 2020 beat our internal expectations and the corresponding 10Q filing is due by February 15, 2021. At that time, we will likely provide an additional update with an earnings conference call.
Your continued support is important to us as a Company and is greatly appreciated by me personally.
Magen McGahee, CFO
About Galaxy Next Generation, Inc.
Galaxy Next Generation (OTCQB: GAXY) is a provider of interactive learning technology solutions that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy's distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company's products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products - comprising nearly 90% of Galaxy's sales.
For additional information, please visit our website at: www.galaxynext.us
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Galaxy Next Generation, Inc.
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