VANCOUVER, BC and MESA, AZ, May 22,
2014 /CNW/ - Avidus Management Group Inc. (TSX-V: AVD;
"Avidus" or the "Company") today announced its 2014
first quarter financial results.
Q1 2014 - Highlights and Milestones
- On January 14, 2014, Avidus
announced the appointment of Doug
Ridley as Chief Executive Officer and Director, and,
Daniel Lundell as Chief Operating
Officer of the Company.
- On February 20, 2014, the Company
announced that it entered into an asset purchase agreement with
Akea, LLC ("Akea"), a network marketing company based in
Raleigh, North Carolina.
- On March 4, 2014, Avidus
announced that it completed a non-brokered private placement of
8,044,224 units of the Company at a price of CAD $0.10 per unit for gross proceeds of CAD
$804,224.
Doug Ridley, Avidus's CEO
commented, "We are very pleased with the growth we have witnessed
since announcing the Akea acquisition. Recruiting activity and
revenue has increased dramatically since completing this accretive
acquisition and has established the foundation for long-term
growth. Revenues from Q1 2014 exceeded the combined revenues
of Q3 and Q4 2013 and we are actively assessing other acquisition
targets that will build further momentum as we continue to execute
the Avidus business model."
In Q1 2014, ending March 31, 2014,
the Company generated $652,000 in top
line revenue, compared to $772,000
for the same period in Q1 2013, a decrease of $120,000. The Company attributes the
decrease to an overall slowing of recruiting activities in
mid-2013. However, the Company notes that recruiting has
improved significantly since the launch of IS2, and has further
accelerated since the Akea acquisition.
During the three months ended March 31,
2014 ("Q1 2014"), the Company incurred a net loss of
$552,302, or $0.01 per share compared to $54,837 for the same three-month period in 2013
("Q1 2013"). The increase in the net loss is primarily due to the
one-time administrative and transactional costs associated with the
Akea acquisition.
Q1 2014 sales increased by 300% from the previous quarter Q4
2013 and management expects sales to continue to grow throughout
2014 as the Company executes its business plan.
About Avidus
Avidus Management Group Inc. (TSXV: AVD, OTC: ASNHF), based in
Mesa, Arizona, develops, acquires
and operates growth direct sales and network marketing companies in
the consumer health and wellness market. Avidus brands include
Asantae (www.asantae.com) and Akea (www.akealife.com).
The Avidus leadership team has a combined experience of 100
years in network marketing and direct selling. For more
information, visit www.avidusmanagementgroup.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Forward Looking Statements
Certain information in this news release is forward-looking
within the meaning of certain securities laws, and is subject to
important risks, uncertainties and assumptions. This
forward-looking information includes, among other things,
information with respect to the Company's beliefs, plans,
expectations, anticipations, estimates and intentions, including
the completion of the Acquisition and the private placement of
Units. The words "may", "could", "should", "would",
"suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and
expressions are used to identify forward-looking information. The
forward-looking information in this news release describes the
Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such
forward-looking information may differ materially from actual
results or events. Material factors which could cause actual
results or events to differ materially from such forward- looking
information include, among others, the Company's ability to develop
new products which will receive market acceptance, to receive
market acceptance in new markets outside the United States, to engage and retain
qualified key personnel, employees and affiliates, to obtain
capital and credit and to protect its intellectual property
rights.
The Company cautions that the foregoing list of material factors
is not exhaustive. When relying on the Company's forward-looking
information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. The Company has assumed a certain
progression, which may not be realized. It has also assumed that
the material factors referred to in the previous paragraph will not
cause such forward-looking information to differ materially from
actual results or events. However, the list of these factors is not
exhaustive and is subject to change and there can be no assurance
that such assumptions will reflect the actual outcome of such items
or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE
REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS
NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH
DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY
OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE
TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
SOURCE Avidus Management Group Inc.