Galenfeha files Form 8K with the SEC
Galenfeha CEO buys stock from previous affiliates
GALENFEHA CEO UPDATES SHAREHOLDERS
FORT WORTH, TEXAS, June 7th, 2018—Galenfeha, Inc. (OTC:GLFH) announced today the company’s newly appointed CEO, Mr. Trey More, gives updates to shareholders.
Mr. Moore stated: “I want to address our shareholders and investors, and answer some questions that have been rising since our press release announcing the potential Acquisition of Fleaux Services, and my new role as the CEO of Galenfeha, Inc.
Galenfeha released first quarter earnings results on May 25, 2018, and the company reported combined revenues of approximately $1,100,000. 2017 wastewater rehabilitation work for the city of Shreveport Louisiana continued over into 2018 and was the primary reason why Galenfeha’s Fleaux Solutions Division beat revenue expectations for first quarter. This work that was not completed in 2017 and continued into this year has had the effect of delaying some of our scheduled work with prime contractors for second quarter.
We believe this schedule shift will be temporary, and have notified the city that Fleaux Solutions has staff and equipment ready to work 2 shifts 7 days a week in order to help city prime contracts get back on schedule. We have been informed by our prime contractors that these delays only impact will be moving some of this year’s work into 2019.
We recently stated in a press release that company affiliates where going to move all their preferred stock back into the common stock. After much consideration, management has disregarded this recommendation, and will keep the same structure and dynamics as our founder, Mr. James Ketner, had originally designed. His method protects our common shareholders, and puts performance goals in place for management to meet before being able to participate in the tradable float.”
Fleaux Services Acquisition
Mr. Moore continued: “Management has been looking into every available financing option in order to finalize the Acquisition of Fleaux Services. We believe we have engineered a package that is logical and favorable to the bank and the shareholders. We hope to have news soon securing the funds for the acquisition. Fleaux Services had top line revenues of $23m for the first 5 months of 2018, with net income of approximately $1.6.
We are not able to forecast 2018 bottom line numbers for both companies at this time because we have two priorities; continuing growth, and at the same time de-leveraging the company and improving our balance sheet. Although this might not be what shareholders want to hear today, we are looking into the long term plans for Galenfeha. If we can deleverage our balance sheet, it will pave way to more acquisitions in the future with cheaper financing while also providing a strong foundation for rapid organic growth in revenue and profits.
I leave you all with this message, no one will work harder than our management team and myself to create shareholder value and continued profitable growth. I urge each of you to get involved and know your company you have invested in no matter the amount. We have over 1300 shareholder/investors that in my opinion can be an effective sales force and ambassador of all our positive and remarkable achievements we have made and will be making in the future. We value your confidence, trust and commitment to the company’s success.”