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Wednesday, December 1, 2021

SMC Entertainment Inc (OTCMKTS: SMCE) Powerful Run into Copper Land as Ambitious New Ceo Takes the Helm and CO Signs LOI to Acquire Genesis Financial, Inc. An Established Diversified Financial Services Company

SMC Entertainment Inc (OTCMKTS: SMCE) is making an explosive move up the charts into copper land after the Company announced it has entered into an LOI to acquire 100% equity interest in Genesis Financial, Inc. a diversified financial services company with a focus on fintech-powered Wealth Management advisory services. The acquisition is valued at $45 million. Genesis operates its business mainly through two Australian regulated entities in wealth management, tax and accounting advisory services. For the 9 months to September 2021 the Australian operations generated gross revenue of approximately $15,765,000 (AUD$21,371,861) and derived EBIT of approximately $1,035,600 (AUD$1,403,919). All figures are unaudited. 

This is big news for SMCE which trades at just a $4.7mm total market valuation on a tight share structure of 692,126,974 shares outstanding most of which are restricted leaving just 173,7 million shares currently free trading. Reverse merger plays can be more explosive than biotech’s when the incoming Company has real value but is undiscovered to investors and many RM stocks, we have covered on this website have gone from pennies to dollars and while SMCE is not exactly a rm stock the new acquisition dwarfs the operations of the Company. SMCE is quickly getting noticed by some big players in small caps and is attracting legions of new shareholders. With significant liquidity and momentum penny stock speculators are looking for big things here. 

SMC Entertainment Inc (OTCMKTS: SMCE) is a diversified financial services company focusing on fintech-powered Wealth Management business mainly through two Australian regulated entities in wealth management, tax and accounting advisory services. Those subsidiaries are Ballast Accounting and The Financial Link Group. SMCE is ”pink current” with just $1.5 million in debt on the books and a tight share structure with OS at 692,126,974 representing a $4.7 million market valuation. 

In October the Company promoted Mr. Ron Hughes to Chief Executive Officer, sole Director and Chairman of the Board. Mr. Hughes will retain his current title of SMCs President as well. The promotion was effective on October 1, 2021. Since joining SMC in May 2020 as VP of Communication, then promoted to President in June 2021, Ron has been instrumental in keeping the Company current with its finances, filings, negotiated disposition of non-core assets, introduction of operational excellence and conditioning the Company for new partnerships, mergers & acquisition transactions. Mr. Hughes is a corporate executive with over 30 years of experience in business development and investment markets. 

The Company also executed a consulting agreement with Iron Clad Partners LLC to provide short-term and long- term strategic planning. Pursuant to the Agreement, effective 10/1/2021, Iron Clad has been retained for an initial term of twelve months. 

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SMCE

The stock took off after the Company reported it has entered into an LOI to acquire 100% equity interest in Genesis Financial, Inc. a diversified financial services company with a focus on fintech-powered Wealth Management advisory services. The acquisition is valued at $45 million. 

Genesis is a diversified financial services company focusing on fintech-powered Wealth Management business mainly through two Australian regulated entities in wealth management, tax and accounting advisory services. Those subsidiaries are Ballast Accounting and The Financial Link Group. For more information, visit us at www.ballast.com.au and www.tflg.com.au  Genesis operates its business mainly through two Australian regulated entities in wealth management, tax and accounting advisory services. For the 9 months to September 2021 the Australian operations generated gross revenue of approximately $15,765,000 (AUD$21,371,861) and derived EBIT of approximately $1,035,600 (AUD$1,403,919). All figures are unaudited. 

Pursuant to the terms of the LOI, SMC will acquire 100% of the issued and outstanding securities of Genesis for stock. Genesis shareholders will receive SMC’s preferred stock convertible to common. Subsequent to acceptance and closing of this transaction, management will strategize an additional capitalization plan minimally of $15 million for immediate implementation. The new capital will be allocated for further expansion, acquisitions and working capital. Management will also explore the ability to seek a more senior public listing exchange along with a reflective name change into 2022. 

The Australian Wealth Management industry has over 25,000 financial advisors managing 2.2 million investors. The annual fees generated by the Wealth Management industry is close to $3.9 billion. According to AITE (2020) at least 10 million adults are underserved or not served at all by the Australian Financial Advisors. Genesis has firmly positioned itself to acquire and consolidate to expand in Australia’s fragmented Independent Dealer Group business sector. 

Warwick Kerridge, Genesis’ Chairman said, “this transaction presents an ideal opportunity for Genesis to work with SMC to accelerate our growth strategy and position ourselves in the sector both in the United States and Australia to maximize shareholder value and build a platform that will ultimately allow us to become a significant player in the advisory and wealth management sector. Genesis has identified a number of synergetic acquisitions and growth opportunities in the United States and we are very confident that the acquisition of dealer advisor groups in the United States will integrate seamlessly with our existing and growing platform in Australia. It is critical to us that we have a revenue footprint in both countries so that the market and all stakeholders can easily see and understand the value proposition.” 

“We look forward to closing this transaction with Genesis in a timely fashion,” said Ron Hughes, President and CEO of SMC. “The acquisition will allow us to advance our own growth strategy and enhance shareholder value. Our distinct competencies in understanding and implementing strategies for growth in the fintech and advisory sectors will give SMC a strong competitive advantage to expand Genesis’ growth strategy in the United States, Australia and other Asia Pacific Regions.”. 

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SMCE is making an explosive move up the charts into copper land after the Company announced it has entered into an LOI to acquire 100% equity interest in Genesis Financial, Inc. a diversified financial services company with a focus on fintech-powered Wealth Management advisory services. The acquisition is valued at $45 million. Genesis operates its business mainly through two Australian regulated entities in wealth management, tax and accounting advisory services. For the 9 months to September 2021 the Australian operations generated gross revenue of approximately $15,765,000 (AUD$21,371,861) and derived EBIT of approximately $1,035,600 (AUD$1,403,919). All figures are unaudited.  This is big news for SMCE which trades at just a $4.7mm total market valuation on a tight share structure of 692,126,974 shares outstanding most of which are restricted leaving just 173,7 million shares currently free trading. Reverse merger plays can be more explosive than biotech’s when the incoming Company has real value but is undiscovered to investors and many RM stocks, we have covered on this website have gone from pennies to dollars and while SMCE is not exactly a rm stock the new acquisition dwarfs the operations of the Company. SMCE is quickly getting noticed by some big players in small caps and is attracting legions of new shareholders. With significant liquidity and momentum penny stock speculators are looking for big things here. We will be updating on SMCE when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with SMCE.

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Disclosure: we hold no position in SMCE either long or short and we have not been compensated for this article.

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