12 ReTech Completes 3rd Fashion Brand Acquisition Rune NYC, LLC becomes a 12 ReTech Subsidiary
Las Vegas, NV & Hong Kong, March 18, 2019 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTC: RETC) announced today that it has acquired 92.5% ownership of Rune NYC, LLC (“RUNE”). As a result, we expect to consolidate RUNE’s financials into our own SEC financial reports beginning with the upcoming 1st Quarter, FY2019 FORM 10-Q due in May of 2019.
RUNE is an up and coming women’s apparel brand that already sells their activewear products through a variety of well-known domestic USA sales and distribution channels. This acquisition brings immediate brand awareness and revenues to 12 ReTech. Management expects to increase RUNE’s annual revenues which have recently been as high as $1.4 million and even though 2018 revenues were approximately $800 thousand, management expects the next 12 months of operations to yield at least $1.2 million in profitable sales as we grow RUNE’s customer base and increase their gross margins by shifting production to Red Wire Group, LLC’s apparel manufacturing facility, which recently became a wholly owned subsidiary of our Company.
Angelo Ponzetta, 12 ReTech’s CEO commented, “RUNE is an exciting addition to our portfolio of women’s apparel brands. There is good demand for their apparel and they bring new ideas to market quickly. Synergistically, our Red Wire Group manufacturing operations will help to improve RUNE’s operating margins. In addition, RUNE’s existing sales channels will be a great place to introduce our other brands to. I am positive that with our assistance, over the next year RUNE will be generating record revenue run rates for our Company.”
Greg Haehl, manager of the Company’s manufacturing operation- Red Wire Group commented, “Since the signing of the Definitive Agreement between the Company and RUNE, Red Wire has already been manufacturing RUNE’s products. So far, we have demonstrated. quick turnaround and cost savings for RUNE. We welcome Emily to our team and are excited to work with her and the RUNE team.”
Emily Santamore, Managing Member of Rune NYC commented, “I am thrilled to join the 12 ReTech team. Since RUNE’s inception, I have developed a sizable following for my brand and believe that 12 ReTech will help me gather more RUNE fans quickly. The obvious synergies that 12 ReTech’s subsidiaries bring to the table will help me to concentrate my time on where it is best spent, in apparel design and sales, which will benefit all our 12 ReTech brands. With the lower costs of Red Wire’s manufacturing, I should be able to win business from large brand name retailers who have expressed interest in my designs but for whom I was previously unable to meet their pricing requirements. This should really accelerate our revenue growth.”
Ms. Santamore continued, “In addition, I have several C-level contacts in the department store and retail industries and have started to introduce the 12 ReTech technology to my customers. They have provided some very positive responses and we will soon be proposing 12 ReTech’s technology alongside Rune’s apparel offerings to build value for my most progressive customers.”
Angelo Ponzetta added “We are already working on the integration of our three fashion brands, with Red Wire’s team operating the manufacturing for our brands in two factory sites. This is an exciting time for our Company as our recent additions are producing positive cash flow and opening new opportunities for us in both our technology business and our consumer brand business. There is a lot going on in our business pipeline in all three of our geographic markets, Soon, I hope to present exciting news about technology progress in Europe and the USA.”
Mr. Ponzetta finished, “We are really starting to gain momentum!”
About Rune NYC, LLC
Founded by a brother-sister team in January 2013, Rune NYC, LLC set up shop in the heart of New York City’s historic garment district. Rune NYC is a growing fashion company focusing on the expanding women’s market of activewear and athleisure. They offer an array of apparel targeted to fashionable women who are looking for excellent quality and great value. Rune currently designs and produces fashion leggings, maternity leggings, plus-size leggings, bottoms, tops, dresses, and jackets. Rune NYC is 100% designed and manufactured in the USA.
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.
Safe Harbor: This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words “estimate,” “anticipate,” “expect,” “believe,” and similar expressions are intended to be forward-looking statements.
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