TAMPA, FL, July 28, 2023 – Umbra Applied Technologies Group, Inc (OTC PINK:UATG) (UAT Group), announced today that it has divested its corporate interests in NextCast and Bacter Scientific. Under previous agreements, UAT Group held a 26% interest in Next Casting Technologies Inc and a 10% interest in Bacter Scientific Inc. The acquisitions represent a $10.2M debt obligation that will no longer be reflected on UAT Groups financial statements going forward.
Chief Executive Officer, Alex Umbra commented, “In an effort to streamline the Company’s fiscal posture and better position UAT Group as an operationally bankable conglomerate, we are aggressively consolidating interests and resources. This begins with but, does not end with, repurposing previously allocated resources to existing interests and/or assets with a greater return potential. Originally, we accepted minority positions with the understanding that their management would perform as agreed upon. We reluctantly took this divestiture action after their management failed to deliver promised results or take corrective action”.
The Company further indicated that additional reviews are being conducted of all interests and assets which have not performed as initially agreed upon due to supply chain challenges, manufacturing delays due to shortages in skilled labor availability, management strain, increasing costs and late paying customers. Successful sales growth has been stunted on occasion due to payment delays, labor shortages and rising costs which has ultimately eroded margins.
The Company has begun re-allocating corporate resources to bolster existing assets with the greatest potential for both growth and industry impact. The Company had a policy of ongoing evaluation of new opportunities, particularly those which related to existing business. UAT Group will continue to evaluate new opportunities in the future, however the CEO has put a moratorium on new acquisitions through the end of the year.
Chief Financial Officer, Thomas Crom stated, “UAT Group has paid significant amounts (in excess of $17 million) for intellectual property which failed to deliver their promised results. We have already contacted those companies regarding their failure with the objective to see definitive results or return of our capital investment. We recognize that this might be viewed as an aggressive approach, but we believe we were left with no alternatives, given the substantial delays and lack of corrective action.”
The Company’s new efforts to streamline efficiencies and growth will also extend into legacy agreements that have either not performed or have complicated delivery to market metrics. Umbra added, “Over the next several weeks we will be executing several strategies to rid the Company of low performing assets and/or IP. This is a necessary step to ameliorate returns and meet end of year objectives. In the end, UAT Group will be much healthier as an industry leader within its operational segments as well as an investable security in the capital markets”.
About Umbra Applied Technologies Group, Inc.
The firm is located in Tampa Florida and focuses on advanced technologies across many disciplines. UAT Group is a holding company with interests in both public and private companies during the early stages of development as well as growth stages of companies with a synergistic business model to UAT Group subsidiaries.
For more information, visit www.uatgroup.com
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This news release may include “forward-looking statements” including forecasts, estimates, expectations, and objectives for future operations including but not limited to its ability to conclude a business combination with a third party, sale of assets, return of capital or initial public offering and a secondary listing on the OTC as a result of aforementioned and its ability to fund the exploration of its assets through the raising of equity or debt capital or through funding by a joint venture partner that are subject to a number of assumptions, risks, and uncertainties, many of which are beyond the control of Umbra Applied Technologies Group including but not limited to capital markets and securities risks and continued development success on technology. There can be and are no actual or implied guarantees that any of the above activities will be completed or completed on terms acceptable to the Company and its shareholders or approved by any regulatory authority having jurisdiction. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Umbra Applied Technologies Group does not assume the obligation to update any forward-looking statement, except as required by applicable law.
SOURCE: Umbra Applied Technologies Group, Inc.