$RETC 12 ReTech Announces Significant European Re
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Posted On: 05/01/2019 9:07:52 AM
$RETC
12 ReTech Announces Significant European Revenue Commitments Coupled With Expense Reductions.
Las Vegas, NV, Hong Kong and Zurich Switzerland, May 01, 2019 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTC: RETC) announced today that it has signed technology license agreements with Coppola A.G. whereby they will license 12Sconti and continue efforts to grow and support its recent deployment in Zurich. They have also agreed to license the 12 AdScreen software, purchase and install hardware in order to launch the Visore advertising concept in six or more major European cities.
This new structure has the effect of eliminating almost all the expenses of 12 Europe A.G. and allows the Company to turn the European operation into a royalty based business model and profit center. The Company will continue to generate revenues from the Company’s proprietary technology and applications while eliminating almost all of the ongoing operating costs and the significant investment required for the expansion of 12Sconti and the implementation of Visore. Initial revenues will be derived from our licensing fees for 12Sconti, which is gaining ground with Jelmoli and additional Zurich based retailers.
Angelo Ponzetta the Company’s CEO commented, “We had been investing heavily in the European market and started to see progress. Our initial efforts proved out the viability of our technology and retailing concepts. Now, we are transforming our operations into a more profitable business model in Europe. Our partner, Coppola A.G. will invest in all aspects of Visore and 12Sconti, continuing to build on our initial efforts. Our projected licensing fees are equivalent to the operating income that we had previously projected had we continued to develop and expand our own organization in Europe.”
To highlight the cost savings, we point readers to the Company’s recently filed FY2018 Form 10-K, where we reported that the 12 Europe AG operation had incurred a net loss of $51,671 USD in FY2017. That loss accelerated to $283,378 USD in FY2018. Going forward, this new operating structure will reduce our European annual expenses to under $5,000 USD while generating revenues from our retail technology as we continue to make inroads in Europe. These changes should positively impact our financial statements in the second quarter and beyond as significant expenses were incurred by 12 Europe in the first quarter of FY2019.
Mr. Ponzetta, continued, “With this new structure in place, we reduce expenses by allowing our partner to shoulder the burden and risks. We receive an attractive ongoing percentage of the fees that will be generated in all cases. This moves the Company into a highly profitable Software as a Service (“SAAS”) business model in Europe, which by the way, has a very expensive and highly regulated business environment that is best navigated by locals.”
Mr. Coppola, CEO of Coppola A.G. stated, “I have been working with 12 Europe for about 9 months and have built the team that I am absorbing, into my own company. We all strongly believe in the products that 12 ReTech has built and are strongly committed to invest our own money to build the brand, and expand its profitable reach.”
Mr. Ponzetta concluded, “With the stroke of the pen, we have transformed our European business from a labor and cost intensive operation into a profitable SAAS business model. I have a lot of confidence in our partner, Pietro Coppola who worked with us to get us to this point and is ready, willing and able to take this to the next level. This allows both of our teams to. benefit from our efforts, and allows us to concentrate on our core businesses in the U.S.A. and Asia. By reducing the cash requirements to develop Europe and create a profitable business there, we further reduce our need for dilutive convertible debt, which we have relied upon in the past for working capital. Look for us to initiate similar cost savings in other areas of our business as we strive to achieve future profitability.“
About 12 ReTech Corporation:
At our core, we are a software company whose technology allows retailers to combat the dual threats of Walmart and Amazon — both online and in physical stores. Our microbrand rollup acquisition strategy allows us to demonstrate the effectiveness of our software, devise and test new products, while providing shareholder value through immediate revenue and earnings growth. The Company operates through our subsidiaries on three continents: 12 Hong Kong, Ltd., 12 Japan, Ltd., 12 Europe A.G., 12 Retail Corporation (and its subsidiaries in North America, including Emotion Fashion Group, Inc., Red Wire Group, LLC and Rune NYC, LLC). For more information please visit our website at www.12ReTech.com.
12 ReTech Corporation is publicly listed on the OTC Markets under the symbol RETC.
12 ReTech Announces Significant European Revenue Commitments Coupled With Expense Reductions.
Las Vegas, NV, Hong Kong and Zurich Switzerland, May 01, 2019 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTC: RETC) announced today that it has signed technology license agreements with Coppola A.G. whereby they will license 12Sconti and continue efforts to grow and support its recent deployment in Zurich. They have also agreed to license the 12 AdScreen software, purchase and install hardware in order to launch the Visore advertising concept in six or more major European cities.
This new structure has the effect of eliminating almost all the expenses of 12 Europe A.G. and allows the Company to turn the European operation into a royalty based business model and profit center. The Company will continue to generate revenues from the Company’s proprietary technology and applications while eliminating almost all of the ongoing operating costs and the significant investment required for the expansion of 12Sconti and the implementation of Visore. Initial revenues will be derived from our licensing fees for 12Sconti, which is gaining ground with Jelmoli and additional Zurich based retailers.
Angelo Ponzetta the Company’s CEO commented, “We had been investing heavily in the European market and started to see progress. Our initial efforts proved out the viability of our technology and retailing concepts. Now, we are transforming our operations into a more profitable business model in Europe. Our partner, Coppola A.G. will invest in all aspects of Visore and 12Sconti, continuing to build on our initial efforts. Our projected licensing fees are equivalent to the operating income that we had previously projected had we continued to develop and expand our own organization in Europe.”
To highlight the cost savings, we point readers to the Company’s recently filed FY2018 Form 10-K, where we reported that the 12 Europe AG operation had incurred a net loss of $51,671 USD in FY2017. That loss accelerated to $283,378 USD in FY2018. Going forward, this new operating structure will reduce our European annual expenses to under $5,000 USD while generating revenues from our retail technology as we continue to make inroads in Europe. These changes should positively impact our financial statements in the second quarter and beyond as significant expenses were incurred by 12 Europe in the first quarter of FY2019.
Mr. Ponzetta, continued, “With this new structure in place, we reduce expenses by allowing our partner to shoulder the burden and risks. We receive an attractive ongoing percentage of the fees that will be generated in all cases. This moves the Company into a highly profitable Software as a Service (“SAAS”) business model in Europe, which by the way, has a very expensive and highly regulated business environment that is best navigated by locals.”
Mr. Coppola, CEO of Coppola A.G. stated, “I have been working with 12 Europe for about 9 months and have built the team that I am absorbing, into my own company. We all strongly believe in the products that 12 ReTech has built and are strongly committed to invest our own money to build the brand, and expand its profitable reach.”
Mr. Ponzetta concluded, “With the stroke of the pen, we have transformed our European business from a labor and cost intensive operation into a profitable SAAS business model. I have a lot of confidence in our partner, Pietro Coppola who worked with us to get us to this point and is ready, willing and able to take this to the next level. This allows both of our teams to. benefit from our efforts, and allows us to concentrate on our core businesses in the U.S.A. and Asia. By reducing the cash requirements to develop Europe and create a profitable business there, we further reduce our need for dilutive convertible debt, which we have relied upon in the past for working capital. Look for us to initiate similar cost savings in other areas of our business as we strive to achieve future profitability.“
About 12 ReTech Corporation:
At our core, we are a software company whose technology allows retailers to combat the dual threats of Walmart and Amazon — both online and in physical stores. Our microbrand rollup acquisition strategy allows us to demonstrate the effectiveness of our software, devise and test new products, while providing shareholder value through immediate revenue and earnings growth. The Company operates through our subsidiaries on three continents: 12 Hong Kong, Ltd., 12 Japan, Ltd., 12 Europe A.G., 12 Retail Corporation (and its subsidiaries in North America, including Emotion Fashion Group, Inc., Red Wire Group, LLC and Rune NYC, LLC). For more information please visit our website at www.12ReTech.com.
12 ReTech Corporation is publicly listed on the OTC Markets under the symbol RETC.
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