UMAX Group Corp. – Changes to Capital Structure

Rhea-AI Summary

UMAX Group Corp. (OTC PINK:UMAX) announced the proposed cancellation of 500,000,000 shares of its common stock, reducing the current outstanding shares from 565,472,274 to 65,472,274, an 89% reduction. This move aims to enhance market attractiveness and optimize the company's capitalization for future acquisitions. Additionally, the company plans to lower its authorized common stock from 1,850,000,000 to 500,000,000 shares, committing to not increase this for at least three years. These actions are intended to maximize shareholder value.

Positive

• Cancellation of 500,000,000 shares leading to an 89% reduction in outstanding shares, which can enhance shareholder value.
• Lowering authorized common stock to 500,000,000 shares is aimed at making the company more attractive to acquisitions.
• Commitment to maintain current authorized shares for a minimum of three calendar years protects shareholders from dilution.

Negative

• None.

LAS VEGAS, NV / ACCESSWIRE / May 27, 2021 / UMAX Group Corp. (OTC PINK:UMAX), a Nevada corporation, would like to provide an update on the proposed cancellation of 500,000,000 shares of its Common Stock and the subsequent lowering of the Company's authorized Common Stock.

Mr. Fletcher (President and CEO of the Company), states…"On November 2, 2020, we announced the proposed cancellation of the 500,000,000 shares of common stock. These shares are owned by Red Mountain Labs, Inc. (the "Cancellation"), a Wyoming limited liability company, which is the controlling shareholder of the Company. The delay in the Cancellation of the shares was due to the difficulty in getting the required gold medallion signature guarantee due to the large face value of the certificates. We are pleased to announce that all required paperwork to effectuate the Cancellation has been gathered and executed. The documentation shall be forwarded to our stock transfer agent, Transhare Corporation ("Transhare"), no later than June 1, 2021. Barring any unforeseen delays, the 500,000,000 shares of Common Stock should no longer be considered issued and outstanding and should record within ten (10) business days of receipt of the Cancellation package by Transhare,"

The Company currently has 565,472,274 shares of Common Stock issued and outstanding as of the date of this release. Upon the cancellation of the 500,000,000 shares of Common Stock the issued and outstanding will be lowered to 65,472,274 shares of Common Stock. This is an 89% reduction in the amount of issued and outstanding Common Stock of the Company. This Cancellation is being completed to make the Company more attractive to both potential candidates for acquisition and for purchasers of our common stock in the public market, and to adjust our market capitalization to an amount more in line with the current operations and future potential of the Company.

Mr. Fletcher further stated…"Upon completion of the Cancellation, the Company will immediately amend its articles of incorporation registered with the Secretary of State of Nevada to lower its authorized Common Stock from 1,850,000,00 shares to 500,000,000 shares. The Company will also notify OTC Markets Group, Inc. of this corporate action. The lowering of the Company's authorized Common Stock is part of the Company's efforts to restructure the capitalization of the Company to benefit shareholders and to become attractive to future company acquisitions.

The Cancelation and lowering of he authorized Common Stock are part of our efforts to make the Company more attractive to future acquisitions and install an anti-dilutive, pro-investor capital structure. As previously stated in a prior press release, once the authorized Common Stock is lowered, the Company has agreed to not effectuate an increase in the amount of stock authorized for a minimum period of three calendar years. The goal of management with the Common Stock cancellation and the lowering of the authorized common stock is to trade at a relatively normalized market capitalization with the market's understanding that as we make our future acquisitions, for the benefit of the current and future shareholders, they will not suffer significant dilution of their holdings. As we grow the future business of the Company, we want our public shareholders to understand that we have one goal in mind which is to maximize shareholder value.

About Us

UMAX Group Corp. is a Nevada corporation, is a public quoted Pink Sheet issuer under the ticker symbol "UMAX". UMAX reports as an alternative reporting issuer with OTC Markets Group, Inc. and is current in its mandatory required filings.

Disclaimer Regarding Forward Looking Statements

Certain statements that we make may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions.  In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would," as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions.  Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements.  We caution investors not to rely unduly on any forward-looking statements.

Company Information: UMAX Group Corp.
4114 North Pecos Road, Suite 107
Las Vegas, NV 89115
Web Site: https://funnymediagroup.com/
Instagram: https://www.instagram.com/funnymediagroupofficial/?hl=en
Investor Relations: Ted Campbell
Phone: (702) 750-7639

SOURCE: UMAX Group Corp.

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FAQ

What is the significance of UMAX's share cancellation?

The cancellation of 500,000,000 shares reduces the total outstanding shares by 89%, aiming to increase attractiveness for investors and potential acquisitions.

When will the share cancellation of UMAX be effective?

The share cancellation paperwork will be forwarded to Transhare Corporation by June 1, 2021, and should be processed within ten business days.

What changes will UMAX make to its authorized common stock?

UMAX will lower its authorized common stock from 1,850,000,000 to 500,000,000 shares after the cancellation is complete.

How does UMAX plan to protect shareholder value?

UMAX's strategy includes canceling shares and lowering authorized stock to avoid dilution and maximize shareholder value.

What is the current number of UMAX's outstanding shares?

As of the release, UMAX has 565,472,274 shares of common stock issued and outstanding before the cancellation.