Paymeon Inc. expects to close on its all-stock acquisition of the remaining 80 percent of e-bike maker ProdecoTech in the next 30 days, the penny stock company disclosed in an annual report filed Thursday.
PayMeOn Inc. of Fort Lauderdale, FL plans to issue approximately 53.4 million common shares
of its stock in exchange for the remaining stake in ProdecoTech as part of a
plan to take thea Pompano Beach e-bike
maker public.
In an annual reported filed with the Securities &
Exchange Commission March 26, Paymeon disclosed that ProdecoTech's operating
loss reached $1.4 million in 2014. While the filing did not disclose
ProdecoTech's 2014 sales, it said unaudited figures provided by ProdecoTech show
its sales reached about $5 million in 2013.
Paymeon is essentially a development stage company that has
spent the last few years trying to develop and commercialize an app. The
company reported less than $31,000 in revenue for 2014 and said most of that
came from selling ProdecoTech bikes online -something it only began doing in September.
Paymeon announced in November a plan to acquire ProdecoTech as a first step in
taking the company public. Paymeon loaned an aggregate of $84,670 to ProdecoTech
in February and January at an annual interest rate of 7 percent.
“In the event we complete the acquisition of
ProdecoTech we will require a minimum of $1,400,000 to maintain our combined
operations through the next 12 months,” reads Paymeon's 10K. “We
cannot provide any assurances that required capital will be obtained or that
the terms of such required capital may be acceptable to us. If we are unable to
obtain adequate financing, we may reduce our operating activities until
sufficient funding is secured or revenues are generated to support operating
activities.”
ProdecoTech produces various models of electric assisted
cruiser and urban commuter bikes at 60,000-square-foot facility in Pompano
Beach. The bikes retail for $1,200 to $3,000.
