LOS ANGELES--(BUSINESS WIRE)--WealthCraft Capital, Inc. (“WealthCraft” or the “Company”) [OTCBB: WCCP] is pleased to announce the acquisition of a majority interest in Geaux Industries (“Geaux”), a provider of security services for commercial, retail and industrial customers, with customized services and special patrol methods applicable for the cannabis industry, in exchange for $1,000,000 of the Company’s common stock at market value. The exchange agreement provides for the Company to acquire the minority interest, under certain terms and conditions. Geaux is licensed by California Department of Consumer Affairs. For selected security operations, it does business under the franchised name of Signal 88 Security.
The Company believes that the security industry will continue to grow at an overall rate of between 6% and 8% growth while in the cannabis industry; growth rate could be substantially in excess of the 10% to 30% predicted for those with an appropriate customer focused business plan. Geaux will continue to address the marketplace with innovative new technologies and services and creative business models for the traditional and non-traditional businesses.
At the closing, the Company provided $100,000 of additional expansion capital obtained as part of the proceeds of a private placement of convertible notes not to exceed $750,000 to be sold and issued and was or is available to investors under Section 4(a)(2) and Rule 506 of Regulation D.
At the closing, Adam Sexton, the Chief Executive Officer of the Company, was appointed to fill a vacancy on the Board of Directors of Geaux.
Will Mayhew, Jr., President and Chief Executive Officer of Geaux Industries comments: “We are very excited to be working with WealthCraft on expanding our elite specialized security services to protect businesses, property and individuals. We believe that our experience in the security industry in general and in providing specialized services to the medical and recreational cannabis businesses with the economic and business support of WealthCraft will facilitate the addition of additional locations and others in the emerging vertical growth cannabis industry.”
Adam D. Sexton, President and Chief Executive Officer of WealthCraft Capital, Inc. comments: “With the legalization of recreational cannabis in California on January 1, 2018, the Company believes that there is a significant market opportunity for Geaux Industries to be one of the leading providers of specialized security services. We believe that with Will’s leadership, its business operations will expand as cannabis production in the United States increases and as legalization of cannabis progresses. We will also be looking for other business opportunities that support the legal cultivation and processing of cannabis and opportunities in other growth businesses.”
Forward Looking Statements
This Press Release contains certain “forward-looking statements” [as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)]. These statements reflect our current expectations regarding our possible future results of operations, performance, and achievements. Wherever possible, the Company has tried to identify these forward-looking statements by using words such as “anticipate,” “believe,” “estimate,” “expect,” “plan,” “intend,” and similar expressions. These statements reflect our current beliefs and are based on information currently available to us. Accordingly, these statements are subject to certain risks, uncertainties, and contingencies, which could cause our actual results, performance, or achievements to differ materially from those expressed in, or implied by, such statements. Further, the safe harbor provisions of the Exchange Act may not apply to an issuer that issues penny stock. These statements speak only as of the date of this press release. Actual results may differ materially from those indicated by such forward- looking statements as a result of various important factors. The Company does not assume any obligation to update any forward- looking statements to reflect events or circumstances after the date of this Press Release except as required by applicable law.
About WealthCraft Capital, Inc.
WealthCraft is focused on the investment of capital in private companies that are interested in expanding their business by gaining better access to capital, management consulting, and business development. The Company provides financial and administrative services to start-up, emerging growth and mature businesses. We believe that we have access to investment capital and we will be able to identify and take advantage of a profitable business opportunity. The success of our plan of operation will depend on the availability of funding and the management of the business opportunity. Obtaining financing and consummation of a transaction may result in the issuance of our previously authorized and unissued shares of common stock that would result in a reduction in percentage ownership of shares owned by our present and prospective shareholders and the addition of others to our management.