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Decentralized, Not Deregulated — The Future Of DeFi Is Changing Following Onslaught Of Lawsuits And Criminal Investigations

Ink Finance

By Rachael Green, Benzinga A slew of lawsuits and investigations have brought crypto platforms and decentralized autonomous organizations (DAOs) under increasingly intensifying scrutiny over the past few months. For all the innovation that DAOs allow, the organizational structure is also being used by some to evade regulation. They do this primarily by classifying their tokens as utility tokens, which are not subject to regulation, rather than as security tokens, which are subject to regulation. But the decentralized and autonomous nature is also being used in some lawsuits to evade accountability for illegal activities. Here’s a quick rundown of some of the latest legal developments that are testing the definitions and regulatory status of DAOs and what it means for financially sensitive protocols, especially in the decentralized finance (DeFi) space. DAOs Have Been Used As A Loophole For Avoiding Existing Market Regulations Take the recent case of bZeroX, later Ooki DAO, which was a platform where users could trade and lend crypto tokens on margin. With any other commodity or security, this kind of leveraged trading platform would have had to be registered as a designated contract market as well as a futures commission merchant. Part of that registration process would have included implementing a know-your-customer (KYC) procedure to verify the identity of participants. Said KYC could have prevented or at least reduced the collateral damage that occurred when the platform was hacked in November 2021, allegedly resulting in over $50 million in losses for crypto investors. When a traditional trading platform like E-Trade (NYSE: MS) or Robinhood (NASDAQ: HOOD) sustains losses, it has no effect on the account balances of individual traders on their platforms. Even if the platform an investor traded stocks or commodities on went under, that investor would still be entitled to withdraw the balance of their account. When an unregistered DAO goes under, though, investors on the platform are at risk of being left in the lurch. In the bZeroX case, for example, DAO participants are in the midst of a legal battle over whether or not they are entitled to repayment for their losses and, if so, from whom. Though the failure appears to be exactly the same as those of the centralized exchanges, the DAO formation made things even worse. In buying the governance token, the defendants allege that investors were equal partners in the DAO and, therefore, equally liable for the security gaps that made the platform vulnerable to hacking. But investors argue that they bought the tokens for the purpose of trading and the tokens didn’t give them sufficient control over how the DAO operates. In a statement on a similar case, the Securities and Exchange Commission (SEC) charged Genesis Global Capital with selling unregistered securities to investors on its Gemini Earn crypto lending platform, Gurbir S. Grewal, Director of the SEC’s Division of Enforcement said that the recent collapse of the platform underscored “the critical need for platforms offering securities to retail investors to comply with the federal securities laws. As we’ve seen time and again, the failure to do so denies investors the basic information they need to make informed investment decisions.” Though Genesis is arguably clearly an centralized entity, what should be particularly alarming to DeFi lending protocols is the categorization of security assigned to crypto lending products. The thorny issue then becomes whether a decentralized organization can evade security law. Recent cases like these are venturing into uncharted territory over how best to regulate crypto markets broadly and financial DAOs specifically. As the contrasting bZeroX and Genesis cases show, there are no easy answers. A tactic called “legislation by litigation” might be used heavily by regulators to curb what they believe as abuses while awaiting legislative actions, i.e., “shoot first and ask questions later”. Regulation Is Coming, But What It Will Look Like Remains Unclear While clear and unified legislation might still be some way off, what seems clear is that some kind of regulation will be necessary to better protect investors, clarify the parameters and risks of their investments, and generally restore trust in crypto. Commenting on the Genesis case, Former Chief of the SEC’s Office of Internet Enforcement, John Reed Stark, said, “The perilous crypto-ecosystem is a mammoth, opaque and incestuous clandestine marketplace with no transparency, no meaningful regulatory oversight and no consumer protections.” Stark noted that an “SEC enforcement sweep” was looming which would bring more trading platforms and lending protocols under scrutiny. “Expect more crypto-runs to trigger, more crypto-defendants to be charged and more crypto-story to be told,” Stark said in a tweet earlier this month. As this unfolds, DAOs, especially in the DeFi space, will likely need to take steps now to prepare for new and varied compliance requirements. Different jurisdictions are likely to implement different requirements and regulations may vary depending on the nature of the DAO’s activities. That means readiness, flexibility, and adaptability could be vital so that the organization can pivot with as little disruption as possible along the path where new regulations form and take effect. DAO toolkits like Ink Finance offer a realistic plug-and-play solution for maximum flexibility in adaptation, the much needed integrity components for KYB/KYC, and greatly enhanced security & accountability features that can better protect against hacking while helping compliance. This article was originally published on Benzinga here. Ink Finance is a DAO governance toolset, enabling all kinds of ecosystems to establish governance economy, manage internal finance, and connect with DeFi investors everywhere, through a no-code user experience. As a Financial SaaS built on blockchain, Ink Finance has the most comprehensive financial engineering tools to support on-chain issuance, settlement, clearing, and analysis of Non-Fungible Financial Products.Ink Finance is backed by heavy weight eco builders such as Republic Crypto and DeFi Alliance, partnered with cutting-edge solution providers such as Humanode, Astra, SolvFinance, Polytrade and deBridge, etc. This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice. Contact Details Camille Zhang camille.zhang@ufit.live

February 06, 2023 09:55 AM Eastern Standard Time

LASE Bounces Back: Microcap Sees Over 215% Stock Price Increase In Last Month, Passes IPO Value

Laser Photonics Corporation

By David Willey, Benzinga Laser Photonics Corp (NASDAQ: LASE) has soared past its initial public offering (IPO) price. In the last month, Laser’s stock value has increased by over 215% at time of writing, to cap off a year when other microcaps have been suffering. There are several features that traders and investors often pay attention to when looking for microcap companies that perform well, including whether the company trades on a major exchange, if it indicates significant and continued growth over time and reports positive earnings data. Laser Photonics - which trades on the NASDAQ stock exchange - has seen robust stock value increase, and closed out the first month of 2023 at $5.23. The company, which produces a variety of photonic-based industrial products, has a market cap of over $42 million. The vertically-integrated laser company has a special focus on laser cleaning technology and works with both private and public companies. Its laser technologies range from 3D printing and engraving to laser-blasting brand CleanTech. Its clients include Fortune 1000 leaders and the U.S. military. LASE Showing Resilience In Photonics Industry The company made its IPO at $5 in September 2022, with an offering of 3 million shares. Within two weeks of its IPO, Laser first saw a sharp dip and then a sudden rise. The stock got a lift from several key announcements in 2022. The company got an order with the U.S. Navy for its hand-held, industrial-grade LPC-1000CTH CleanTech Laser Blasting System. This was followed by the announcement that Coca-Cola Co. (NYSE: KO) started using the CleanTech Handheld LPC-50CTH Laser at its manufacturing facilities — news that saw another increase in stock. It also received a major order from North America’s largest glass manufacturer, Vitro Architectural Glass, in mid-December. Vitro made an order for Laser Photonics’ CleanTech laser systems as a cost-effective solution for cleaning their products - an announcement that received a positive reaction in the market. Since the New Year Laser Photonics has seen a steady climb in stock value. This was boosted by the board of directors announcing a $2 million share buy back in mid-January. The company raised $12 million at the original IPO, and has seen improvement in its finances and bottom line since then. Wayne Tupuola, chief executive officer, said, “With approximately $1.50 per share in cash, no debt and profits, we believe the stock is significantly undervalued. Given this gap in perception, our board of directors has approved a 2 million share buyback.” The company's ability to generate such a significant increase in stock value over a short period of time could be seen as an indicator of company health. It may suggest a bright future for the company as it sets the standard for laser products in the industrial cleaning industry. Other companies involved in the laser-technology market include Lumentum Holdings Inc. (NASDAQ: LITE), CyberOptics Corp. (NASDAQ: CYBE) and IPG Photonics Corp. (NASDAQ: IPGP). To learn more about Laser Photonics, visit its website. This article was originally published on Benzinga here. Laser Photonics is a vertically-integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. LPC seeks to disrupt the $46 billion, centuries old, sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. LPC's new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental, and regulatory issues associated with the old methods. As a result, LPC has quickly gained a reputation as an industry leader for industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aerospace, automotive, defense, energy, industrial, maritime, space exploration and shipbuilding industries are using LPC's "unique-to-industry" systems. This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice. Contact Details Brian Siegel, IRC®, M.B.A. Senior Managing Director Hayden IR brian@haydenir.com Company Website https://www.laserphotonics.com/

February 06, 2023 09:45 AM Eastern Standard Time

Inkle raises $1.5M to power tax & accounting for US cross-border companies

Inkle

Almost half of the 20,000 US companies created on Stripe’s Atlas incorporation platform alone (of which almost 10,000 were formed in the year leading up to June 2021) were created by non-US-based founders. In helping these founders (and those based in the US) navigate the US regulatory environment, human chat-based US CPA SaaS product Inkle is today announcing a $1.5 million pre-seed funding round to help these companies handle bookkeeping, tax, and compliance filings through its software solution for US cross-border companies. Picus Capital, Saison Capital and Force Ventures participated in the funding round. Cross-border companies with a US parent holding company often struggle with back-office administration. The Big Four are too expensive, and smaller CPA firms are not able to cover everything or use the legacy solutions and rely on email, Google Drives and third-party generic tools to meet the growing regulatory demands. As a result, small cross-border companies are left in a grossly underserved market with slow, expensive, disorganized, often unresponsive and unaffordable service providers. It also leaves gaps, requiring customers to patch together several consultants and solutions. Add multiple entities and time-zone issues, and it quickly becomes chaotic, resulting in missed deadlines and an unnecessary management burden. Inkle was co-founded in late 2021 by British entrepreneur Anand Krishna after experiencing the tedious headache of managing tax and bookkeeping for several US entities which he had launched, and Ranvir Singh joined him in 2022. In creating an efficient approach to regulatory demands, Anand felt human chat was the need of the day. Inkle is an asynchronous human chat platform that combines a strong accounting outsourcing industry (based in India), with an English-speaking workforce, cost arbitrage, and SaaS engineering know-how - creating the perfect ingredients to address a major pain point. Anand was most recently the Co-Founder & CEO of Index, a personal finance mobile app company which was acquired in 2021 by Tencent-backed Niyo. Prior to this, he co-founded a Y Combinator-backed fintech company having spent a decade at Goldman Sachs, Morgan Stanley and Vedanta Resources Group. Ranvir Singh was the first employee at Inkle and has recently been appointed Co-Founder & CTO, having architected the Inkle tech stack. Previously he was at Paytm where he helped build and scale Paytm Chat to tens of millions of users. Inkle CEO and Co-Founder, Anand Krishna commented: “Just over a year into our journey, and despite us starting during the pandemic and a global recession, hundreds of US companies onboarded and are now happier with our human chat-based approach to handling their back-office headaches; our CPA teams are delighted with 10x new business volumes without a need to hire extra staff or put any effort into acquiring customers; and we’ve built a dominant position in one focused corridor with solid revenue growth. And yet the customer now gets to pay less than ever before. It’s a win-win-win situation. Software will revolutionise this massive space, which is perfect for disruption by Inkle - building and delivering from right here in Bengaluru for the world. We’re delighted to partner with our first investors to prove we can do the same in other corridors now. Inkle’s full-stack software and collaborative features creates a scalable, on-demand and affordable back office for global companies. It is powered by highly experienced independent US-licensed, India-based CPA teams with decades of global accounting and tax experience. These are independent practitioner-led outsourced teams who are able to rapidly scale up on demand. Customers can manage and track their filings from anywhere. The platform offers asynchronous human chat with bookkeepers and CPAs and clear dashboards with deadline alerts, team collaboration, secure corporate document vault, and transparent billing. Inkle’s newly launched bookkeeping ledger - Inkle Books - fills a glaring gap by synching to bank feeds on one side and recognised accounting softwares on the other. This gap frustrates bookkeepers and Inkle solves this by introducing transaction-level clarification human chat, merchant recognition and categorisation, attachment automation, transaction-level tax monitoring, a global compliance rule engine and more. The majority of Inkle customers have multiple group entities in various countries, Inkle Books tracks the various intercompany money movements inside the group: transfer pricing, foreign direct investment and royalty, as well as handling complex group consolidation. Inkle also facilitates compliances such as registered agent, mailroom, and state, federal and cross-border regulatory reporting. For its independent CPA team partners on the backend, Inkle superpowers them with advanced practice management and workflow solutions, replacing their reliance on Google Sheets and email. Both the customer and CPA softwares are constantly evolving their modern fresh SaaS interface to seamlessly connect all three sides. Inkle, which was bootstrapped and in stealth until now, has grown revenues 7x in the last year to hundreds of thousands of dollars. Inkle has quietly built a strong leadership position in the US-India corridor (half of all YC companies in India, 3% of all YC companies globally and hundreds of US companies overall use Inkle today). Inkle is now expanding into new corridors such as US-Canada, US-LATAM and new sectors such as crypto taxes. Customers include leading tech companies such as Salesken, Mailmodo, Zoko and DriveTrain. Florian Reichert (Partner and Managing Director at Picus Capital), added, “Given the obligatory nature and zero default requirements in accounting, tax and compliance software tooling is a major customer need and hence also in the current economic climate indispensable. With its full-stack SaaS offering Inkle sits at the intersection of customers, CPAs, accounting tools and authorities clearly making workflows more efficient and less error-prone. We are impressed by what Anand and the team has built in a very lean manner and are thrilled to be supporting Anand on his journey to revolutionize how cross-border companies manage their accounting, taxes and compliance." About Inkle Inkle is a global tax and accounting SaaS startup based in Bengaluru, India and headquartered in Delaware, USA. Inkle provides software to enable US companies created by overseas founders to easily and affordably handle tax, accounting and compliance. About Picus Capital Picus Capital is an international, privately financed venture capital company with headquarters in Munich and offices in New York, Beijing, Berlin, London, Bangalore, Stockholm and São Paulo. Picus predominantly invests in Pre-Seed, Seed and Series A rounds and focuses on technology companies in financial services, HR, energy & climate, healthcare, logistics & mobility, real estate & construction, crypto & web3, deeptech and e-commerce. As an entrepreneurial sparring partner, Picus Capital pursues a long-term investment philosophy and supports founders from the ideation phase to the IPO and beyond. For further information please visit www.picuscap.com and LinkedIn. Contact Details Inkle Bilal Mahmood +44 7714 007257 b.mahmood@stockwoodstrategy.com Company Website https://www.inkle.io/

February 06, 2023 08:00 AM Eastern Standard Time

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Frontera In Discussions with STX Border Finance Partners in Connection With Pending Acquisition of Texas Money Exchange

Frontera Group Inc.

McapMediaWire -- Frontera Group, Inc. (OTC: FRTG ) (“Frontera,” “Frontera Group” or “the Company”), a technology-focused strategic acquirer of revenue-generating companies and intellectual property (IP), today announced it has entered into financing discussions with Rio Grande Valley-based STX Border Finance Partners (“STX”). As previously reported, Frontera recently signed a term sheet to acquire 24.9% of the total issued and outstanding shares of common stock of McAllen, Texas-based Texas G & S Investments, Inc. d/b/a Texas Money Exchange (“TME”)( www.texasgsinv.com ) from a joint venture controlled by members of the Solis family of McAllen, Texas. The term sheet also provides an option for Frontera to acquire the remaining 75.1% of TME over time. Frontera stated the discussions with STX Border Finance Partners relates to exploring various financing opportunities that exist related to the TME acquisition and its expansion plans from Brownsville to San Diego. In addition, STX is considering making an investment in FRTG’s current SEC approved $9 million stock offering. Luis Manuel Gonzalez & Associates, a prominent Mexican attorney and private equity investor is in a strategic alliance with STX relating to its Frontera financing discussions and Mexican affairs. About STX Border Finance Partners STX Border Finance Partners is a private equity and venture capital firm in the Rio Grande Valley associated with the McAllen, Texas-based Solis family. About Texas Money Exchange TME is believed to be the largest foreign exchange and international payment specialist in the Texas Rio Grande Valley (RGV). In business over 27 years, TME is an emerging Fintech and critical cog in the supply chain between the United States and Mexico. On behalf of its customers TME conducts business foreign exchange USD-MXN (Dollars/Pesos), business payments USD-MXN, payment of vendors in Mexico, receiver of payments from Mexico and makes authorized freight voucher payments. TME customers include importers and exporters of a wide range of products such as Americans use and consume on a daily basis. About Frontera Frontera Group is a strategic acquirer of intellectual property and revenue-generating companies in the technology and human capital markets. It is developing and executing an aggressive, four-tier acquisition and implementation strategy intended to provide substantial increases in profitability to its acquisitions in industries with traditionally low and stagnant EBITDA multiples. The Company has identified and is currently pursuing several revenue-generating acquisition targets. For further information, please visit Frontera’s website at www.frtgtech.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 The statements contained in this news release which are not historical facts may be “forward-looking statements” that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe FRTG’s hopes, plans, objectives, goals, intentions, or expectations are forward-looking statements. The forward-looking statements made herein are only made as of the date of this news release. Numerous factors, many of which are beyond FRTG’s control, will affect actual results. FRTG undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This news release should be read in conjunction with FRTG’s most recent financial reports and other filings posted with the OTC Markets and/or the U. S. Securities and Exchange Commission by FRTG. Frontera Group Contact K. Bryce Toussaint, Board Director invest@frtgtech.com Investor Relations Contact Lindsey Harasta lindsey@frtgtech.com Contact Details Frontera Group Lindsey Harasta lindsey@frtgtech.com K. Bryce Toussaint, Board Director invest@frtgtech.com

February 03, 2023 03:21 PM Eastern Standard Time

News Release

Quantum eMotion launches Sentry-Q quantum-safe messenger platform

Quantum eMotion Corp

Quantum eMotion CEO Francis Bellido joined Proactive's Natalie Stoberman to discuss the launch of the company's Sentry-Q quantum-safe messenger platform. Bellido explained that the quantum-safe messenger platform is designed for the secure communication of large and complex messages, including entire database structures. Sentry-Q will initially function as a cloud-based solution and will be progressively applied and evolved with hardware-based modules, such as PCI Express cards, mini-HSM devices and embedded processors, he added. Contact Details Proactive USA +1 347-449-0879 na-editorial@proactiveinvestors.com

February 03, 2023 12:18 PM Eastern Standard Time

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Plurilock Security CEO sees 2023 as pivotal for company with a focus on growth

Plurilock Security Inc.

Plurilock Security CEO Ian L. Paterson joined Proactive's Steve Darling to talk about plans for 2023 as the company looks to continue driving growth including cross selling on a number of its products. Paterson illustrated that with a new contract the company has signed for its flagship software platform with a US credit union. Contact Details Proactive Investors Canada +1 347-449-0879 action@proactiveinvestors.com Company Website https://www.proactiveinvestors.ca/

February 03, 2023 10:50 AM Eastern Standard Time

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Nextech AR Solutions announces details regarding the spin-out of Toggle3D

Nextech AR Solutions Corp.

Nextech AR Solutions CEO Evan Gappelberg joined Steve Darling from Proactive to share news about the spin-out of its AI-powered Toggle3D platform through a wholly-owned subsidiary of the company. Gappelberg told Proactive the success the company saw with ARway Corporation's spin-out last October led it to pursue a similar move with Toggle3D. Nextech plans to retain approximately 65% ownership of the new company. The spin-out is still subject to court and shareholder approval. Contact Details Proactive Investors Canada +1 604-688-8158 na-editorial@proactiveinvestors.com

February 03, 2023 10:44 AM Eastern Standard Time

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TNRG Signs Reg A Offering Agreement

Thunder Energies Corp.

McapMediaWire -- THUNDER ENERGIES CORP. [OTC: TNRG ] announces that it has executed an agreement this week with Dalmore Group, a broker-dealer, New York, NY, regarding the company's Reg A Offering. Terms and provisions of the agreement were not released. Dalmore will be assisting TNRG with the FINRA broker-dealer letter required as part of the Reg A offering process. As a broker-dealer, Dalmore is widely acknowledged to be a leading financial firm. They cite a client roster on their website that shows they are providing broker dealer services to hundreds of public company entities with Reg A Offerings. TNRG's proposed offering is 15 million common shares at $5 each, for a total of $75 million – the maximum allowed under a Tier II SEC Reg A offering. The offering will be open, per SEC guidelines, for 12 months once it is qualified. Net proceeds to Thunder Energy are anticipated to be slightly more than $71 million if the offering is fully subscribed. Securities may be sold by the company, as issuer, or by licensed underwriters, or broker-dealers, such as Dalmore. The filing of the Reg A Offering text is available at this link. Ric Haynes, TNRG President, stated the agreement is just one of many steps that TNRG is taking to execute on its new business plan. Haynes, and other members of the new leadership took control of TNRG in April of 2022. Since then, the company has executed agreements for $40 million in cryptocurrency assets; for development of a multimillion-dollar mineral property with substantial reserves in Nevada; and, entered into an agreement and marketing partnership with the WNBA team owned by Mark Davis, the Las Vegas Aces. Additionally, it has: Brought TNRG into full compliance on SEC required financial reporting, with all filings audited by its independent public accountants. Announced the planned uplisting of the stock from pink sheets to OTCQB. Filed a Reg A Offering for $75 million, as stated above. Anticipates a major debt issuance that its Ohio-based bond counsel is preparing. "TNRG is now the proverbial rock rolling down a hillside," Haynes said, "and the public investor community will see that – just like the rock – our momentum is increasing. This announcement does not supersede or otherwise alter or modify the Reg A filing. The company intends for proceeds to be used for general corporate purposes. Please refer to the filing and issuing prospectus for complete information. For more information about Thunder Energies, its SEC filings, and business activities, please visit: www.thunderenergiescorp.com Contents of this press release are provided for general information purposes only and do not constitute an offer to sell or a solicitation of an offer to buy any security of Thunder Energies Corporation ("TNRG") or its affiliates ("Security") in any jurisdiction. TNRG does not intend to solicit and IS not soliciting, any action with respect to any Security or any other contractual relationship with TNRG. Nothing in this press release or the Contents thereof, individually or taken in the aggregate, constitutes an offer of securities for sale or a solicitation of an offer to buy any security in the United States, the United Kingdom, Hong Kong, Singapore or Japan or to US persons, or in any other jurisdiction in which such an offer or solicitation is unlawful. Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Investor Relations Rick Freeman CMO MAJORMEDIA INC E: majormediasales@comcast.net P: 570.468.2205 Donald R. Keer, P.E., Esq. Corporate Counsel Thunder Energies Corp. 3663 Greenwood Circle Chalfont, PA 18914 215-962-9378 Contact Details Rick Freeman +1 570-468-2205 majormediasales@comcast.net Company Website https://www.thunderenergiescorp.com/

February 03, 2023 10:38 AM Eastern Standard Time

Applied UV (NASDAQ: AUVI) Effectively Doubles Its Size Following A Merger That Could Help Shape The Industry – A Brief Look At The Company

Applied UV, Inc.

By Ernest Dela Aglanu, Benzinga A recent merger between Applied UV Inc. (NASDAQ CM: AUVI), Puro Lighting (PURO), and LED Supply Co. (LED Supply) seems to have triggered some excitement in the ultraviolet (UV) disinfection equipment industry. For industry watchers, particularly investors, who are constantly on the hunt for viable investment opportunities, the merger could be on their radar, especially as such a deal can shape the sector’s future. Address A Growing UV Disinfection Market Applied UV believes that the PURO merger further positions it to address a growing air disinfection market trend that aligns with the White House Clean Air Initiatives implemented during the height of the COVID-19 pandemic. The initiative was designed to protect consumers and businesses against existing and future airborne pathogens allowing economies globally to remain open. In terms of the overwhelming opportunities the deal presents, Max Munn, CEO of Applied UV, explained in a press release that it heightened the significant synergies between Applied UV and PURO. The company's acquisition of PURO adds a powerful monitoring software platform that opens new opportunities to interconnect its portfolio of UV technology solutions. Puro already has a strong presence in various sectors, such as education, government, and healthcare. These sectors have some of the strongest growth opportunities in the category, and the company believes that specializations in these sectors complement the current sectors that Sterilumen serves — food Storage, food processing, cannabis and horticulture. “These mergers expand our addressable market significantly, and PURO’s strong, strategic relationship with Acuity and national distributors provides us with additional opportunities to advance our growth agenda and increase returns for our investors,” he said. Applied UV is eyeing being a leading player in an ever-growing UV disinfection equipment industry which also has players like Xylem Inc. (NYSE: XYL), Xenon Pharmaceuticals Inc. (NASDAQ: XENE), Halma Plc. (LON: HLMA) and Calgon Carbon Corp. Currently, there is an increase in the adoption of UV in medical care, fueling the growth of the global disinfection equipment market. The market is anticipated to reach $6.17 billion by 2030 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2022 to 2030. Grand View Research observed that increased government initiatives and rising demand for UV disinfection equipment from healthcare organizations will continue to drive the sector’s growth. The technology and work of companies like Applied UV can never be overlooked, especially in medical care. Increasingly, countless industries, such as healthcare, are realizing the benefits of protecting patients and preventing infection with UV light disinfection at health facilities. For example, UVC radiation emitted by UV germicidal lamps is known to effectively breach the cells of microorganisms, making them non-viable and unable to replicate or infect patients and medical personnel at hospitals. Applied UV prides itself as a global leader that applies the power of narrow-range ultraviolet light for surface areas and catalytic bioconversion technology for air purification to destroy pathogens safely, thoroughly, and automatically. Two Subsidiaries And Segments The company’s major selling point could be its two wholly-owned subsidiaries — SteriLumen Inc. and Munn Works LLC. SteriLumen offers a portfolio of technologically advanced, energy-efficient air purifier and surface disinfectant systems: Airocide® by Sterilumen, Scientific Air™ by Sterilumen and Lumicide™ by Sterilumen. SteriLumen’s connected platform for Data Driven Disinfection™ applies the power of ultraviolet light to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections. Airocide®’s applications include healthcare, hospitality, grocery chains, wine-making facilities, commercial real estate, schools, dental offices, post-harvest, grocery, cannabis facilities and homes. Targeted for use in facilities with high customer turnover, such as hospitals, hotels, commercial facilities, and other public spaces. The Lumicide™ platform uses UVC LEDs in several patented designs for infection control in and around high-traffic areas, including sinks and restrooms, killing bacteria, viruses, and other pathogens residing on hard surfaces within devices’ proximity. The company’s second subsidiary, Munn Works, is a global company that manufactures the highest quality mirrors and case goods. From statement pieces that have the impact of original art to meticulous high-volume production for guest rooms or multi-family projects, the company works closely with designers to achieve the perfect balance of aesthetics and economics. The company has the following reportable segments that are driving growth: Disinfection segment: The design, manufacture, assembly and distribution of disinfecting systems for use in healthcare, hospitality, food, wine, and commercial municipal and residential markets. The disinfection segment addresses heating, ventilation, and air conditioning (HVAC) in public, government, municipal, retail spaces and buildings. Hospitality segment: The manufacture of fine mirrors and furniture specifically for the hospitality industry. Applied UV’s merger with LED Supply is key here. LED Supply is a strong player in the commercial lighting space, and the company hopes to bring expertise in design and specification for the multifamily space. It complements the hospitality category and will lead to synergistic revenue opportunities for Munn Works and LED Supply. SG&A Translating Into Cost Reductions? Apart from the broader addressable market and cross-selling opportunities, including increasing revenues, the merger could present synergies that might ultimately translate into cost reductions. A cursory look at Applied UV’s financial results for Q3 2022 showed that Selling, General, and Administrative (SG&A costs for the three months ended September 30, 2022, increased to $3.5 million compared to $2.7 million for the three months ended September 30, 2021. This increase of approximately $822,000 was driven primarily by the expansion of the disinfection segment with the acquisition of KES and SciAir; the expansion of the hospitality segment with the addition of the VisionMark acquisition; and corporate segment expenses due to increased consulting, legal, accounting and infrastructure costs related to the initial integration of the operations of the company’s strategic acquisitions. SG&A costs decreased by $526,000 from last quarter, and the company anticipates efficiency gains this year as it fully integrates its acquisitions and leverages synergies where practical. With a larger team that will collaborate on sales and marketing strategies, new product development, and engineering now at its disposal, Applied UV could eye new acquisitions that could lead to revenue growth for investors and value for customers. For investors looking to invest in medical technology companies or stocks, Applied UV’s growth potential could be very attractive. This article was originally published on Benzinga here. Applied UV is focused on the development and acquisition of technology that addresses infection control in the healthcare, hospitality, commercial and municipal markets. The Company has two wholly owned subsidiaries - SteriLumen, Inc. (“SteriLumen”) and Munn Works, LLC (“Munn Works”). SteriLumen’s Airocide® air purification devices are research-backed, clinically proven, and developed for NASA with assistance from the University of Wisconsin. Airocide® is listed as an FDA Class II Medical device, utilizes a proprietary photo-catalytic (PCO) bioconversion technology that draws air into a reaction chamber that converts damaging molds, microorganisms, dangerous airborne pathogens, destructive VOCs, allergens, odors, and biological gasses into harmless water vapor and green carbon dioxide without producing ozone or other harmful byproducts. Airocide® applications include healthcare, hospitality, grocery chains, wine-making facilities, commercial real estate, schools, dental offices, post-harvest, grocery, cannabis facilities, and homes. SteriLumen’s connected platform for Data-Driven Disinfection™ applies the power of ultraviolet light (UVC) to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections ("HAIs"). Targeted for use in facilities that have high customer turnover such as hospitals, hotels, commercial facilities, and other public spaces, the Company’s Lumicide™ platform uses UVC LEDs in several patented designs for infection control in and around high-traffic areas, including sinks and restrooms, killing bacteria, viruses, and other pathogens residing on hard surfaces within devices’ proximity. The Company’s patented in-drain disinfection device, Lumicide Drain, is the only product on the market that addresses this critical pathogen-intensive location. This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice. Contact Details Brett Maas- Hayden IR brett@haydenir.com Company Website https://www.applieduvinc.com/

February 03, 2023 09:25 AM Eastern Standard Time

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