Somerset, NJ, March 12, 2020 (GLOBE NEWSWIRE) -- Global Fiber Technologies, Inc (OTC PINK: GFTX) would like to address a handful of topics with this shareholder communication that will give some clarity to the current situation at your Company
1. Convertible Notes
The Company is working towards an arrangement with our convertible noteholders that will curtail the velocity of which their notes can be converted and to somewhat curb the dilutive effects of those conversions creating a more efficient and manageable marketplace for the common stock. We are very close to reaching an agreement in “principle” which will ameliorate the current situation and work beneficially for both us as the issuer and for the noteholders as well. We hope to have this turned into an agreement if “fact” shortly. Since 3rd quarter 2019 we have reduced the principal balance on the notes by approximately 40%
We will keep you apprised of our progress with this material item that is important to all.
2. Authentic Heroes, Inc.
The Authentic Heroes subsidiary is filled with promise and continues to garner extremely positive feedback from would be licensors and specialty brand name clients that we are in discussions with.
As planned the initial inventories of our Brett Favre Series of MXO “Made From The Original” Jerseys are scheduled to arrive by the end of March and will go on sale with a Social Media campaign to Brett’s FB audience of 1.5 MM followers the 1st week in April
Our agreement with CLC Group and Warren Sapp is scheduled to transfer one of his “Pro Bowl” jerseys to us in late April and we will then start the process of building out the Warren Sapp MXO series of jerseys. This event will be filmed and then distributed thru an aggressive social media campaign starting with Warren’s 500,000 twitter followers and increasing the foot print with a live event sponsored by Authentic Heroes and Thuzio https://www.thuzio.com/
Our agreement with Bravado/Universal Music ad RUN DMC is in the process of sourcing the live event shirts worn by the original group and should be identified shortly which will allow us to start the manufacturing of the MXO Tees and Hoodies.
3. EcoTek360, Inc.
EcoTek is advancing the development of its proprietary process of being able to take corporate uniforms or other cotton or cotton/polyester products destined for landfills or incinerators and turning them into re-purposed products such as Polo Shirts, T Shirts, Aprons, Placemats, Tablecloths and Totes.
This can be a very large opportunity for the company, and we are in development phase of creating samples for our continued discussions and advancements with large corporations in the uniform and hospitality industries.
4. FiberChain, Inc
FiberChain is approximately 50% completed and will continue its goal of having the only live and interactive platform for the buying and selling of textile and industrial fibers which shrinks transaction times from weeks to hours. We will advance the commercialization of FiberChain as capital allows us to.
With three potentially substantial opportunities in front of us we will be looking to maximize shareholder value by:
a. Completing an agreement shortly that curtails the current dilution pattern of the prior convertible note contracts.
b. Seeking “equity finance” packages for each individual subsidiary company. It is our expectation to monetize each asset held by the Company over the next twelve to eighteen months by directly financing each subsidiary in private transactions and creating separate public markets for each company. Global will be acting as the “management company” for each company with Global Fiber Technologies maintaining the controlling interest in each subsidiary company.
In our opinion in this is the most effective way to get optimal value for each company and minimize the dilutive effects of each company’s own financing needs by not using Global’s common stock to finance each subsidiary company.
c. Launching our sales phase in Authentic Heroes in a few weeks with the launch of the Brett Favre MXO “Replay” Series
Henceforth, we are mindful of the current situation but excited about the future and look forward to keeping you apprised during this challenging and transitional phase of the company.
Chris H Giordano
Global Fiber Technologies, Inc