Business
Labwire, Inc (OTC: LBWR) Announces Acquisition of Cessil and Change of Control
Labwire, Inc (OTC: LBWR) Announces Acquisition of Cessil and Change of Control.
About this update from Labwire, Inc.
[{"type":"text","content":"major updates on its corporate structure and operational guidance for the 2023 business outlookAcquisition of CessilOn 2/17/2023, Labwire acquired Cessil, a Phoenix-based discount store with multiple locations, for $1,000,000 in equity deal. Mr. Jong Jin Chung, the owner of Cessil, will stay with Labwire managing a day-to-day operation and plans to expand locations in Phoenix metropolitan area. He plans to join the executive team near future and stays as a long-term shareholder of Labwire.The company and the board reviewed and approved this acquisition as Cessil met its strict criteria which include i) private company valuation multiples, ii) a strong track record of operational performance, iii) a strong management team with industry expertise, and iv) share Labwire’s long term plan of building its shareholder’s value.Labwire’s 2023 Business OutlookWith a recent acquisition of Cessil, the company is estimated to generate $1.8M in revenue with a positive cash flow. This projection does not include any other effort in a capital raise as well as the additional acquisition or a successful launch of pre-revenue projects. The management believes that it is the best practice to provide updates on the items that have been realized and to stay conservative in its outlook. Creating hype not only harms existing shareholders but also new shareholders who may invest in the company with unrealistic expectations.Change of ControlMr. Shin Hwang, a managing director of Imperium Partners, LLC., took a control of Labwire by acquiring 100% of Series A Preferred Stock issued and outstanding. With his holding at Labwire, he controls 60% of the fully diluted voting of the company.Appointment of New Management and Board of DirectorsMr. Shin Hwang has been appointed as President & CEO of the company. Previously, Mr. Hwang held management positions at Precipio, Inc (NASDAQ: PRPO), Osiris Corporation, BR Consulting as well asFlower Tech. Mr. Hwang began his career as an analyst at Cornwall Capital and respectively holds a B.A. in applied mathematics with statistics from the University of California at Berkeley.Mr. Bob Welty has been appointed as a Director of the Board. Mr. Welty is a founding partner and creative director at ROWE Creative Union. Mr. Welty is a veteran of the retail design industry with deep expertise gained from working with Fortune...