KRTL Holding Group Announces KRTL Biotech Inc. Signs MOU with Industria Químico Farmacéutica Sigma Corp. S.R.L. to Pursue Strategic International Merger

Rhea-AI Summary

KRTL Holding Group (OTC: KRTL) has announced that its subsidiary KRTL Biotech Inc. has signed a Memorandum of Understanding (MOU) with Bolivia's Industria Químico Farmacéutica Sigma Corp for a strategic international merger. The agreement includes shared governance structure and consolidated financial oversight, with Sigma maintaining operational autonomy in Bolivia.

Key terms include Sigma receiving one Special 2021 Series A Preferred Share in KRTL Holding Group and board representation. Financial integration will be managed through SIGMARTL Corp, a U.S.-based entity. The merger aims to integrate Sigma's manufacturing operations and revenue streams into KRTL Biotech, facilitating U.S. market entry for Sigma's pharmaceutical products.

Sigma currently generates annual revenues exceeding $20 million, with facilities operating at 40% capacity. The merged entity projects potential revenue doubling within two years post-integration. The deal is expected to enhance operational efficiency and expand KRTL's presence in international pharmaceutical production.

Positive

• Potential revenue doubling within two years post-merger
• Current annual revenue stream of $20+ million from Sigma
• Opportunity to increase facility utilization from 40% to full capacity
• Access to US pharmaceutical market through KRTL's regulatory framework
• Enhanced international pharmaceutical production capabilities

Negative

• Current underutilization of Sigma's production facilities at 40% capacity
• Complex international merger requiring extensive regulatory approvals
• Potential shareholder dilution through equity issuance to Sigma

News Market Reaction – KRTL

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On the day this news was published, KRTL gained 8.78%, reflecting a notable positive market reaction.

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Lakewood, CO, March 24, 2025 (GLOBE NEWSWIRE) -- KRTL Holding Group Inc. (OTC: KRTL), a diversified holding company operating through its subsidiaries KRTL Biotech, Inc. and KRTL International Corp., is pleased to announce that its wholly owned subsidiary, KRTL Biotech Inc., has signed a Memorandum of Understanding (MOU) with Industria Químico Farmacéutica Sigma Corp. S.R.L. ("Sigma") of Bolivia. This MOU establishes the framework for a strategic international merger between the two pharmaceutical entities.

Under the terms of the MOU, KRTL Biotech and Sigma have agreed on key merger provisions, including a shared governance structure, consolidated financial oversight, and aligned Quality Management Systems (QMS). Sigma will maintain full operational autonomy in Bolivia, while the partnership focuses on cross-border compliance, coordinated financial operations, and integrated strategic governance.

“This MOU marks a pivotal milestone for KRTL Biotech and a transformative step in our international expansion,” stated Cesar Herrera, CEO of KRTL Holding Group Inc. “By joining forces with Sigma, we are strengthening our global regulatory capabilities and expanding pharmaceutical production capacity across U.S. and South American markets.”

As part of the agreement, Sigma will receive equity in KRTL Holding Group Inc., including one (1) Special 2021 Series A Preferred Share and representation on KRTL Holding's Board of Directors. In addition, key Sigma executives will receive individual common stock allocations to align long-term incentives. Financial integration will be managed through SIGMARTL Corp, a U.S.-based financial management entity designed to track global revenue, ensure compliance, and oversee profit-sharing mechanisms.

The legal structuring and regulatory due diligence of the merger is being managed by a specialized law firm in South America, with experience in international mergers and pharmaceutical regulations. The final Business Merger Agreement, currently under development, will formalize the merger upon securing all necessary legal and financial conditions.

The MOU outlines a strategic plan to consolidate Sigma’s manufacturing operations and revenue streams into KRTL Biotech. This integration is intended to facilitate the import and commercialization of Sigma’s pharmaceutical products in the United States under KRTL’s regulatory and distribution framework. The parties believe that the merger will significantly enhance operational efficiency, enabling Sigma’s production facilities—currently running at approximately 40% capacity—to scale output and achieve full utilization. Based on current figures, Sigma generates annual revenues exceeding $20 million, and the combined entity anticipates the potential to double that figure within the first two years following full integration.

This initiative builds upon KRTL Biotech’s ongoing strategy to establish itself as a central player in international pharmaceutical production, API oversight, and regulatory compliance. The combined operations will enhance production capacity, open new markets, and foster innovation in therapeutic development.

About KRTL Holding Group Inc.

KRTL Holding Group Inc. is a dynamic holding company operating through its wholly owned subsidiaries, KRTL Biotech, Inc. and KRTL International Corp. These subsidiaries specialize in biopharmaceutical innovation, international trade, and compliance-driven healthcare advancements. By leveraging strategic mergers, acquisitions, and joint ventures, KRTL Holding Group continues to push the boundaries of scientific research, regulatory compliance, and global business solutions.

For more information, please visit:

www.krtlholding.com

www.krtlbiotech.com

www.krtl-icc.com

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Forward-Looking Statements

This press release contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, anticipated business developments, regulatory advancements, and strategic growth plans. Such forward-looking statements involve known and unknown risks that may cause actual results to differ materially from those expressed or implied.

KRTL Holding Group assumes no obligation to update or revise forward-looking statements, except as required by law. Any updates will be made in accordance with applicable SEC regulations and disclosure obligations. Readers are cautioned not to place undue reliance on forward-looking statements.

www.krtlholding.com
info@krtlholding.com

www.krtlbiotech.com
info@krtlbiotech.com

www.krtl-icc.com
info@krtl-icc.com

FAQ

What are the financial terms of the KRTL-Sigma merger agreement?

Sigma will receive one Special 2021 Series A Preferred Share in KRTL Holding Group, board representation, and key executives will receive common stock allocations. Financial management will be handled through SIGMARTL Corp.

How much revenue does Sigma currently generate and what are KRTL's growth projections?

Sigma currently generates over $20 million in annual revenue, with the merged entity projecting potential doubling of revenue within two years after full integration.

What is the current capacity utilization of Sigma's facilities and how will it change under KRTL?

Sigma's production facilities currently operate at 40% capacity. The merger aims to scale output to achieve full utilization.

How will the KRTL-Sigma merger affect pharmaceutical distribution in the US market?

The merger will enable import and commercialization of Sigma's pharmaceutical products in the United States under KRTL's regulatory and distribution framework.

What operational changes will occur at Sigma following the KRTL merger?

Sigma will maintain full operational autonomy in Bolivia while integrating its manufacturing operations and revenue streams into KRTL Biotech's framework.