LAS VEGAS, NV / ACCESSWIRE / May 27, 2021 / UMAX Group Corp. (OTC PINK:UMAX), a Nevada corporation, would like to provide an update on the proposed cancellation of 500,000,000 shares of its Common Stock and the subsequent lowering of the Company's authorized Common Stock.
Mr. Fletcher (President and CEO of the Company), states…"On November 2, 2020, we announced the proposed cancellation of the 500,000,000 shares of common stock. These shares are owned by Red Mountain Labs, Inc. (the "Cancellation"), a Wyoming limited liability company, which is the controlling shareholder of the Company. The delay in the Cancellation of the shares was due to the difficulty in getting the required gold medallion signature guarantee due to the large face value of the certificates. We are pleased to announce that all required paperwork to effectuate the Cancellation has been gathered and executed. The documentation shall be forwarded to our stock transfer agent, Transhare Corporation ("Transhare"), no later than June 1, 2021. Barring any unforeseen delays, the 500,000,000 shares of Common Stock should no longer be considered issued and outstanding and should record within ten (10) business days of receipt of the Cancellation package by Transhare,"
The Company currently has 565,472,274 shares of Common Stock issued and outstanding as of the date of this release. Upon the cancellation of the 500,000,000 shares of Common Stock the issued and outstanding will be lowered to 65,472,274 shares of Common Stock. This is an 89% reduction in the amount of issued and outstanding Common Stock of the Company. This Cancellation is being completed to make the Company more attractive to both potential candidates for acquisition and for purchasers of our common stock in the public market, and to adjust our market capitalization to an amount more in line with the current operations and future potential of the Company.
Mr. Fletcher further stated…"Upon completion of the Cancellation, the Company will immediately amend its articles of incorporation registered with the Secretary of State of Nevada to lower its authorized Common Stock from 1,850,000,00 shares to 500,000,000 shares. The Company will also notify OTC Markets Group, Inc. of this corporate action. The lowering of the Company's authorized Common Stock is part of the Company's efforts to restructure the capitalization of the Company to benefit shareholders and to become attractive to future company acquisitions.
The Cancelation and lowering of he authorized Common Stock are part of our efforts to make the Company more attractive to future acquisitions and install an anti-dilutive, pro-investor capital structure. As previously stated in a prior press release, once the authorized Common Stock is lowered, the Company has agreed to not effectuate an increase in the amount of stock authorized for a minimum period of three calendar years. The goal of management with the Common Stock cancellation and the lowering of the authorized common stock is to trade at a relatively normalized market capitalization with the market's understanding that as we make our future acquisitions, for the benefit of the current and future shareholders, they will not suffer significant dilution of their holdings. As we grow the future business of the Company, we want our public shareholders to understand that we have one goal in mind which is to maximize shareholder value.
About Us
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.
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Company Information: UMAX Group Corp.
4114 North Pecos Road, Suite 107
Las Vegas, NV 89115
Web Site: https://funnymediagroup.com/
Instagram: https://www.instagram.com/funnymediagroupofficial/?hl=en
Investor Relations: Ted Campbell
Phone: (702) 750-7639
SOURCE: UMAX Group Corp.