Code Green’s Stealth Merger With ZoomBang Prepares For The Big Reveal

12/11/2018, 2:00 PM (Source: GlobeNewswire)
  • ZoomBang technology is key driver of innovation
  • Cross selling synergies with merger
  • Company prepares for a current filing status with OTC Markets
  • Sustainable textiles strategically positioned to compete with distribution model

LAGUNA BEACH, Calif., Dec. 11, 2018 (GLOBE NEWSWIRE) -- Code Green Apparel Corp. (OTCMKTS: CGAC) and ZoomBang announced their intent to merge on August 31, 2019.  The letter of intent (LOI) highlighted how they could work together and play off of each other’s strengths.  ZoomBang has a large array of products and offerings as well as intellectual property.  According to Co-Founder of ZoomBang Joseph Scott, “Code Green’s extensive background in sourcing and production” was a clear reason to move forward with the merger.  The synergies between these two companies will allow them to drive existing and new revenue streams for an even broader range of products.  This major press release about the merger was not picked up by OTC markets, which is one of the primary reasons the stock hasn’t reacted to the news, yet.  Therein lies the immediate opportunity for new investors reading this. 

Both companies went to an investment conference on November 8th and 9th and placed in the top 3 out of 18 presentations.  The top 3 status earned them extra time to pitch their deal to angel investors.  Their top 3 ranking also demonstrates the investor appeal of the story.  The company has openly stated that they are looking to raise $1.5 million to fund the growth of ZoomBang.  The Angels Investors Network is held in Tampa, Florida, and is known to have a solid base of accredited investors.  These type of investors don’t typically need financials, but it’s reasonable to expect them to be ready to make an investment decision shortly after they are released.

The company is striving to get current in their financial reporting and will need to do so in order to raise any capital.  This could be the first catalyst for the company as investors learn about sales revenues of the newly acquired Designer Apparel Group LLC.  This visibility will help investors gauge the intrinsic value of the company and its quarterly growth in revenues.  Assuming 16.5 million shares outstanding they are trading at a market capitalization of just over $700,000.  Long term angel investors that see the potential of the combined ZoomBang / Code Green merger might rush to do a deal based on the great value proposition.     

Code Green Apparel Corp (CGAC) is an emerging industry leader in Sustainable Textiles and is strategically positioning itself to build on its already impressive portfolio of sustainable apparel products by offering hemp-based textiles and apparel in addition to providing corporations with Corporate Logo Wear, Uniforms and other Sustainable Textile products. Management boasts over 75 years of textile experience in the apparel industry and intends to be disruptive in the market. Their wide range of products meet the high quality demands of consumers today while leveraging upcycled fabrications (recycling polyester and cotton cutting scraps) to make positive impacts on the world we all live in. Could this little green company become the next apparel giant.  Most people have no idea how much water it takes just to make one pound of cotton. 

There are parallels to be drawn when compared to UnderArmour (UAA).  Just like UAA focused on performance apparel so does ZoomBang.  UAA started their business in 1996 with apparel for football, and came up with a moisture-wicking synthetic fabric to keep athletes cool, dry, and light.  ZoomBang currently has 14 NFL teams that use their performance apparel and has expansion plans in place.  UAA limped along for a while until they got celebrity endorsements which changed their narrative.  This influx of exposure helped them land funding and eventually launch an apparel line that eventually expanded into different sports and even made its way into the Olympics with the US Speed skaters. The company soon morphed into a global brand that we know today with its athletic shoes, t-shirts, jackets, hoodies, bags, and protective gear.  The Code Green / ZoomBang merger has similar potential and investors should look seriously at the road map that UAA laid out.  The company appears to be following the same playbook. 

ZoomBang makes protective gear for the sport, military/tactical, industrial, and medical marketplace.  What makes them special is their technology which incorporates polymers that stiffen on impact yet are lightweight and durable.  Imagine taking a sponge, putting it on top of your hand and smashing it with a mallet or even smashing your Apple (AAPL) iPhone. Crazy right? What if we told you, both your hand and phone were perfectly fine. Want crazier? What if we shot you with a .38 handgun at point blank range while wearing a bulletproof vest underlined with ZoomBang’s impact technology and it left you without a scratch, bruise or mark of any kind? These were a couple of the exciting demonstrations that accredited angel investors excited last month. See for yourself:
See iPhone YouTube Demo: https://www.youtube.com/watch?v=0e-vc05nSXw
See .38 shot at point blank: https://www.youtube.com/watch?v=VHZN-IfDIxU

The sizzle in the Code Green Apparel story is the ZoomBang technology.  It’s clear that this is where the exponential growth can happen from the patent protected technology.  Recycled apparel is definitely a huge market as well but it’s all about the price and competition will eventually creep into this market as well albeit a number of years from now.  The recycled apparel market is in its infancy and it’s attracting customers that are socially conscious.  These same customers are also local and federal governmental organizations.  Police need uniforms and many may have a need for the tactical gear that goes under their body armor.   The applications for this disruptive material can range from football helmets to combat concussions which has plagued the sport, or to be worn under bulletproof vests by military or law enforcement. In this segment of the market the polymer can be worn under riot gear, knee pads, elbow pads, chest plates, and helmets.  Bomb squads and tactical teams also have a special use that allows them to use less explosives in breaching operations.  Blowback is a big issue during a breach and the use of ETM polymer allows Special Forces and tactical teams to reduce the weight of the explosive by 75% compared to water cartridges.  Eliminating the water bladders means safer traction, less explosive needed, and less frag during the breaching operation.  The possibilities are boundless because this material can absorb tremendous force offering priceless protection.

This intellectual property contained in ZoomBang’s technology could be worth millions or even billions of dollars if they can land a military contract.  This technology can make existing products better and pave the way for new discoveries and uses.  Armor Holdings Inc., a U.S. maker of military and heavy vehicles, Humvee armaments and soldier body armor, was purchased by London based BAE Systems (BAESF), for $88 a share, or $4.1 billion back in 2007. BAESF is a global defense, aerospace and security company with approximately 88,200 employees worldwide. The Group delivers a wide range of products and services for air, land, and naval forces, as well as advanced electronics, security, information technology solutions and support services.  These are the type of licensing deals that are possible with ZoomBang. 

Investor Summary
Investors are not grasping the magnitude of the underlying value of the intellectual property of the latest deal they are in the process of closing with ZoomBang.  Both companies are ready to roll out large sales operations.  The synergies between the companies are found in the customer base and the large array of products the combined company would offer.  There isn’t one police force that wouldn’t want to buy socially responsible uniforms especially if they are cost effective.  Once that customer is acquired the additional effort to cross sell them on the ZoomBang tactical gear is negligible.  There are also huge licensing opportunities in different segments of the market.  The company is following in the footsteps of UAA, so why wouldn’t they eventually simply license this technology to UAA once they get traction.  Axon (AAXN) formerly known as Taser has made big inroads with bodycams.  CGAC could do a joint venture with AAXN in selling the protective gear.  The point is that CGAC is a licensing juggernaut.  The current market capitalization of $700K greatly discounts the demand of every police officer, security guards, park rangers, and soldier in the country that would buy the ZoomBang protective gear out of their own product if they knew of its existence.  The price of this stock will be correlated to awareness.  Any celebrity endorsement of the technology willing to get shot for a good cause could make demand go viral.  This is why the merger with Code Green is so vital.  Sourcing and production need to be in place before there is any big marketing push.  It’s not a question of if this technology is huge, but of when it will be noticed.  Investors will be fighting to own a piece of this company before awareness hits because that is the only thing holding it back.  Timing is everything and stealth buyers could be richly rewarded before one of ZoomBang’s videos go viral.  What would you do for a ZoomBang vest?  It’s a must have product if you work in law enforcement or the military.   

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About Code Green Apparel Corporation:

The company-stated corporate strategy is to lead a market revolution that brings environmentally superior products to market at cost-neutral price points. Code Green Apparel Corp is dedicated to becoming an industry leader in Sustainable Textiles through its Process of creating Eco-friendly clothing providing corporations with corporate Logo Wear, Uniforms and other Eco-Friendly Sustainable Textile products. Management boasts over 75 years of textile experience in the apparel industry and intends to be disruptive in the market. Visit Code Green Apparel on the web at www.codegreenapparel.com.

Code Green Apparel Corp.

Contact: 
Paul Knopick
E & E Communications
940.262.3584

SOURCE:

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