Experience Art and Design, Inc. Executes LOI to Acquire Seven-Unit Dry Cleaning Operation in the North Eastern United States
September 14 2016 - 9:00AM
Access Wire
Metropolitan Dry Cleaners is currently poised to
have 11 locations capable of generating well in excess of $1.8
million in annual revenues for fiscal year 2017
LAS VEGAS, NV / ACCESSWIRE / September 14, 2016
/ Experience Art & Design, Inc. (OTC: EXAD) and a
Seller in the North Eastern United States have executed a Letter of
Intent to acquire a seven-unit environmentally friendly, perc free
dry cleaning company that offers a multitude of additional services
ranging from executive shirt service to tailoring and alterations.
Net cash flow from the operation in 2015 was over $250,000.
Metropolitan Dry Cleaners was approached by the prospective
Seller who was looking to effect an off-market transaction in
August of 2016, and the two companies have been in ongoing
negotiations since then. EXAD is very grateful for the opportunity,
and the Seller has kindly agreed to remain employed by the Company
for a period of up to three years following the closing of the
transaction.
The operation has been a trusted neighborhood brand for over 65
years. They are known for their continued innovation, leadership in
green initiatives and expertise as highly trained dry cleaning
professionals.
The transaction allows Metropolitan the opportunity to digitally
expand through the re-branding of an existing dry cleaning app used
by the Company, as well as expanding physical operations in a new
region of the United States. Metropolitan and the Seller have
agreed that should any real estate be sold in the future,
Metropolitan will have the right of first refusal.
Metropolitan plans to expand pick-up and drop-off services
within the geographic coverage area served by the existing seven
units, as well as developing additional processing services that
will be offered to the local community.
Closing and Name change Updates:
The audits for the two pending acquisitions in Florida are
moving forward. EXAD supplied each company with a detailed list of
information needed to complete their audit. One company has
supplied all the information. This information has already been
reviewed by EXAD's audit team and passed the feasibility review.
That audit is in process now. The second company is still gathering
the information needed and is expected to have the last open items
to EXAD shortly. At that time the information will be forwarded to
the audit team for a feasibility review. If it passes the
feasibility review, it shall move forward with its audit.
Audits normally take 60 to 75 days to complete and timing is
dependent on the information provided by the Seller as well as the
response time for additional information requests. EXAD uses a
third-party CPA to help expedite the audit process. The CPA
prepares the financials, footnotes, and does the testing, before
handing the package over to auditors for final review.
The Closings for both companies are moving forward. The Closing
Dates stated within the executed documents are based on strict
timelines for delivery of documents and the availability of the
auditors and the CPA. The Closings are contingent on audited
financials for fiscal years 2014, 2015, and the first six months of
2016, which are in-line with the financial information represented
prior to closing. If the information does not align then a
write-down on the target company would be required prior to
Closing.
EXAD is continuing its search for additional companies to
acquire and enter into transactional documents to create a backlog
of acquisitions. EXAD has already identified and reached out to
several companies in the North Eastern United States, however these
contacts are still at a pre-LOI stage. Closing times will vary from
deal to deal making the backlog important for Metropolitan's growth
so its success is not reliant on any single transaction.
EXAD has begun the process of a name and ticker change as part
of its corporate strategy. The first of two filings with the State
of Nevada are complete, the second filing will be done within the
next 10 days. EXAD created a wholly owned subsidiary Metropolitan
Dry Cleaners LLC in the State of Florida.
EXPERIENCE ART & DESIGN, INC., IN COMPLIANCE WITH SEC
REGULATIONS, MAY IN THE FUTURE USE SOCIAL MEDIA OUTLETS LIKE
FACEBOOK OR TWITTER AND ITS OWN WEBSITE TO ANNOUNCE KEY INFORMATION
IN COMPLIANCE WITH REG FD.
For additional information about this release please
contact:
Investor Relations:
702-347-8521
info@metropolitandrycleaners.com
http://www.metropolitandrycleaners.com
Forward-Looking Statements
This news release contains "forward-looking statements" as
that term is defined in Section 27(a) of the United States
Securities Act of 1933, as amended and Section 21(e) of the
Securities Exchange Act of 1934, as amended. Statements in this
press release which are not purely historical are forward-looking
statements and include any statements regarding beliefs, plans,
expectations or intentions regarding the future. Such
forward-looking statements include, among other things, estimates
of dry cleaning services and equipment markets, release of
corporate apps, global dry cleaning services and equipment markets,
growth of platform, target markets, product releases, product
demand and, business strategy. Actual results could differ from
those projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the inherent
uncertainties associated with new projects and development stage
companies. These forward-looking statements are made as of the date
of this news release, and we assume no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking
statements. Although we believe that any beliefs, plans,
expectations and intentions contained in this press release are
reasonable, there can be no assurance that any such beliefs, plans,
expectations or intentions will prove to be accurate. Investors
should consult all of the information set forth herein and should
also refer to the risk factors disclosure outlined in our annual
report on Form 10-K for the most recent fiscal year, our quarterly
reports on Form 10-Q and other periodic reports filed from
time-to-time with the Securities and Exchange Commission.
Details of the Company's business, finances, appointments
and agreements can be found as part of the Company's continuous
public disclosure as a reporting issuer under the Securities
Exchange Act of 1934 filed with the Securities and Exchange
Commission's EDGAR database.
SOURCE: Experience Art & Design, Inc.