TOCCOA, GA / ACCESSWIRE / January, 21 2020 / Galaxy Next Generation, Inc. (OTCQB:GAXY) ("Galaxy" or the "Company), a provider of interactive learning technology solutions, learned about certain promotional activity involving the trading of its common stock on January 15, 2020 when it was notified of such activity by OTC Markets ("OTC"). At that time, the Company was informed that promotional articles were published on the internet by a non-affiliated third party source.
The source of the promotional activity was two (2) online articles, by "OTC tip Reporters" and by "Stock Street Wire". The OTC tip Reporters Team article combined several information from previous press releases and research reports and claimed alongside this info and increase in the Company's stock price in one year and a substantial increase in earnings. Stockonion.com carried the same article.
The Company had no prior knowledge of the unauthorized promotional activity and neither the Company nor its officers or directors were involved with the creation or distribution of the promotional materials. Moreover, the Company had no editorial control over the content of the promotional materials. Apparently, the only affect the promotional activity had was to increase the trading volume for two days. There were no significant changes in trading price at or around the date of the promotional activity.
There were certain factual statements in the promotional materials that were true; however, there were statements as to future events regarding earnings and revenue growth (so called "Forecasts") that we have no way of knowing if they will prove to be true or false. Therefore, we believe these statements could be misleading if the reader does not understand that the statements were not based on facts, but instead were based on predictions.
After inquiry, the Company confirms that its officers, directors, material third party service providers and controlling shareholders (i.e., shareholders owning 10% or more of the Company's securities), have not, except as described below, directly or indirectly been involved in any way with the creation distribution or payment for the promotional materials in the last 90 days, nor have they purchased or sold the Company's securities within the past 90 days.
The Company encourages those interested in the Company to rely solely on information included in its press releases and its filings and disclosures made with the S.E.C. (through the EDGAR Database) and OTC Markets Group.
The Company has issued convertible instruments which allow such securities to be converted to its equity securities at prices constituting a discount to the market rate at the time of issuance. These convertible securities were disclosed in the Company's SEC filings and specifically the Company's 10-Q filed for the period ending September 30, 2019. The Company has made one recent issuance under these instruments for 380,952 shares on January 16, 2019 at a 25% discount to the then current market price.
Investor relations services on behalf of Galaxy over the past 12 months have been provided by Magellan, Inviticus also known as World Wide Holdings, Redchip, and SCA. The Company has inquired with all its third party vendors and they all denied any involvement in the promotional activity. These payments and the promotions themselves were made without the prior knowledge or direction of the Company or its officers and directors.
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 United States 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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