Chicago, IL, May 03, 2019 (GLOBE NEWSWIRE) -- 2050 Motors, Inc. (US ETFM) is providing this shareholder update regarding recent developments and planned corporate actions and activity:
Updated SEC Filings Progressing
On May 2, 2019, 2050 Motors filed its Form 10-Q for the three-month and nine-month periods ended September 30, 2019 (3Q18). The filing provides updated information regarding financing activities, corporate actions, and developments that pertain to the corporate strategy described below. With the filing of this Form 10-Q, management is pleased to report that the Company is on track to bring 2050 Motors current with its SEC reporting requirements.
Updated Corporate Strategy
2050 Motors, Inc. has refreshed its corporate website at www.2050motors.com with new information on its current growth strategy. Contingent upon adequate financing, management is implementing a business incubation plan that is aligned to its environmental, social and governance (ESG) mission. The Company is developing direct investment and other involvements of majority- or minority owned businesses or through joint venture agreements that will allow emerging growth companies access to the public markets for expansion capital and possibly a spin-out option to become their own stand-alone public companies.
Updated Electric Vehicle (EV) Game Plan
Previously, 2050 believed a growth plan anchored around EV distribution, supplemented by acquisitions of bicycle sales outlets and augmented by an eBike rental and sales platform, was a viable business strategy. After further analysis of the market, however, management determined that product distribution was far too capital intensive and untenable for the Company to pursue, as evidenced by innumerable competitors importing machines and/or parts from China and selling into the U.S.
Consistent with developing a rental and sales platform, on April 22, 2019, 2050 agreed to invest in ERide Club Corp. (www.erideclub.com), an Internet business owned by our Advisory Board member, Aldo Baiocchi, that will offer EV rentals, sales and services worldwide. When the system is proven across sales outlets, tested by consumers, and reviewed by our staff and advisors, no later than August 1, 2019, 2050 and ERide intend to move from the current LOI to a definitive agreement on bilateral investment between the Companies. To this end, if consummated, we will issue ERide 100,000 newly-created Series B Preferred Shares in exchange for 10% of ERides equity. Further details of the Agreement are available in an 8-K filing on EDGAR dated April 23, 2019.
On April 18, 2019, 2050 signed a Definitive Agreement to purchase 50% of CLEC Networks, Inc., a facilities-based communications provider, from EDGE FiberNet, Inc., a telecommunications provider in NYC owned by our Advisory Board member Ted Flomenhaft. We have committed to fund the business $175,000 in tranches over seven (7) months, which will enable the venture, to be renamed 2050Tel Corp. or similar, to file for appropriate licenses and interconnections with Verizon in 10 states in the Northeast. EDGE is committing a switch to the venture worth at least $150,000 and substantial man hours and management time. As part of the Agreement, 2050 will issue EDGE 100,000 newly-created Series B Preferred Shares. Among other things, the venture intends to offer wholesale telecommunications carrier origination services, DIDs, ports and value-added services to consumers and businesses in the U.S. and abroad. The total addressable market (TAM) for these services in this region is quite large. Approximately half the wholesale monthly recurring cost of every phone service today is Origination. The Company believes that its proven network design will permit it to enter this market at a substantial discount to competitors and still earn a high gross profit margin. According to Ted Flomenhaft, EDGEs CEO most independent Origination service providers to carriers have been acquired or its such a small part of their business mix that that they dont drive it competitively. Its a small niche to the large companies like Level 3 (CenturyLink). For us, even 1% market share would be a large opportunity, scalable and with a considerable price umbrella. 2050 sees a unique window of opportunity to build a sizable telecommunications business over the next 12-24 months enabled by a proprietary network architecture developed by the ventures engineers. Further details of the Agreement are available in an 8-K filing on EDGAR dated April 22, 2019.
We intend to add further assets to our portfolio, which include investments in other private and public companies, that will further diversify our base and provide additional growth opportunities and upside for 2050 shareholders. The new 2050, among other opportunities that are under development, expects to enter the EV market with a B2C/B2B Internet plan. Our 2050 communications venture is a natural fit with our CEOs background as a telecom analyst and banker for 25 years. Investment in other technology fields has the potential to provide additional long-term growth.
About 2050 Motors, Inc.
2050 Motors, Inc. (www.2050motors.com) is a publicly-traded company focused on business incubation. The Company invests in, provides assistance and support with management and Board representation/guidance, and advises emerging growth companies aligned with its environmental, social, and governance (ESG) mission. 2050 is developing direct investment and affiliations - majority- and minority-owned as well as in joint venture formats - that afford emerging companies access to the public markets for expansion capital as well as spin-out options to become their own stand-alone public companies.
Statements in this press release about our future expectations, including without limitation, the likelihood that 2050 Motors will be able to meet US DOT requirements, meet minimum sales expectations, be successful and profitable in the US market, bring significant value to 2050 Motors' stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. 2050s business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing and materially decreases its convertible debt. No information in this press release should be construed in any form shape or manner as an indication of the Companys future revenues, financial condition or stock price.
2050 Motors, Inc.