New York, New York, July 15, 2020 (GLOBE NEWSWIRE) -- Daniels Corporate Advisory Company, Inc. - Payless Truckers, Inc.
During our second quarter of fiscal year 2020, Daniels, as an incubator, continued to build upon earlier milestones in fulfillment of its corporate aim. Forward momentum continues but is now more dependent upon the generation of revenues from our rental business. Eight trucks in our fleet are generating between $21,000 - $24,000 per month in revenues. These rental revenues are helping sustaining the overall Company since the “flip” segment is generating revenues on a more modified level. The retention of key personnel during the economic slowdown as added expenses that are not permanent but have hurt the quarter. To build forward - we are reserving cash from our Class B Callable Preferred Stock and expect to be implementing these funds shortly in a levered transaction. This will have a multiplier effect on rental income and should increase asset value over time, as well. It is Management is in agreement with the view of Goldman Sacks & Company that the U.S. Economic Recovery will be V-Shaped. Simultaneously with the rebound, we expect to have success with our levered purchase of rental trucks. This will help accelerate our growth towards our goal for the Payless Truckers, Inc. subsidiary of one hundred rental trucks on the road with the potential of earning significant returns on capital over the next 12-18 months.
Management’s on-going efforts in selecting additional start-up opportunities as client (subsidiary) candidates is promising. We are in discussions/early negotiations with several that are manned with effective management teams supporting superior ideas/concepts. This collective growth engine concept has always been the Daniels’ aim and is expected to continue to be our engine for growth and eventually the catalyst in meeting the net worth and earnings requirements for a major exchange listing. Our potential for diversification - of growth prospects through a balanced array of future potential clients in different industries - has the potential to prove a stable foundation for growth.
Towards building to our growth alternatives - our formal presentation during our Second Quarter, to a New York based Family Office convinced them to take a serious interest in Daniels and its Corporate aim. In February we filed a certificate of designations with the State of Nevada, designating 1,000,000 of our available preferred shares as Class B Callable Preferred Stock, stated value of $1.00 per share, and with a par value of $0.001 per share. We have the opportunity to redeem the Series B shares at various increased prices at time intervals up to the 6-month anniversary of the closing and mandates full redemption on the 12-month anniversary.
During the quarter we sold two tranches of Class B Callable Preferred Stock totaling 176,000 shares with an annual accruing dividend of 10%, to Geneva Roth Remark Holdings, Inc. (“Geneva”), and received proceeds of $170,000 (net of expenses) pursuant to a Class B Callable preferred stock purchase agreement. The Class B preferred is classified as temporary equity since the shares are convertible at the option of the shareholder. The two tranches, collectively, recorded a derivative liability of $553,460, valued using the Black-Scholes Model, associated with Class B Callable preferred shares.
Forward Looking Statements
The statements contained in this report other than statements of historical fact are “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. These forward-looking statements represent the Registrant’s present expectations or beliefs concerning future events. The Registrant cautions that such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Registrant to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, the uncertainty as to the Registrant’s future profitability; the uncertainty as to the demand for Registrant’s services; increasing competition in the markets that Registrant conducts business; the Registrant’s ability to hire, train and retain sufficient qualified personnel; the Registrant’s ability to obtain financing on acceptable terms to finance its growth strategy; and the Registrant’s ability to develop and implement operational and financial systems to manage its growth. These forward-looking statements speak only as of the date of this report. We assume no obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. You should, however, review additional disclosures we make in the reports we file with the SEC.
Press Release Contact:
Nicholas Viola
CEO
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Cell: (917) 617 - 5445