Latest Updates

Latest Updates

11/05/2019

Surge Holdings Provides Update on Completing Asset Purchase of ECS Prepaid Wireless Business and Software Platform; Adds 9,800 Retail Locations to SurgePays™ Network and Projected $48.7 Million of Additional Annualized Revenue

ECS platform currently processes over 18,000 transactions per day and supports over 160 independent sales organizations and agents representing potential new Surge partners and customers

 Immediate goal to launch high demand and trending retail products 
through the SurgePays Network to rapidly scale revenue

Transaction expected to be immediately accretive to earnings

 

 

Memphis, TN – November 5, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for convenience stores, bodegas and community markets that provide products to the underbanked, today provided an update on completing the asset purchase of the ECS Prepaid business, Electronic Check Services business and the Central States Legal Services business (collectively, “ECS”). 

Through its proprietary Fintech software platform, ECS is a leading provider of prepaid wireless load and top-ups, check cashing and wireless SIM activation to convenience stores and bodegas nationwide.  Since 2008, ECS has grown to a network of over 9,800 retail locations and 160 independent sales organizations (“ISO”) processing over 18,000 transactions per day.  Surge will integrate the ECS software with its SurgePays™ Network in order to offer both wholesale products from third-party manufacturers, as well as Surge products, including the SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits.  The transaction is expected to be immediately accretive to earnings.

Brian Cox, Chairman and CEO of Surge Holdings, commented, “This transaction marks a major inflection point for Surge, by immediately adding over 9,800 new retail locations, $48.7 million in additional projected annualized revenue, and 160 ISO salespeople.  The developers are already working to integrate software platforms to include the ability to cross market the SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits, as well as layer on additional high demand and trending products through the SurgePays™ Network. ECS and their management team of Derron Winfrey and Mark Garner have been a leader in our sector for a long time. We are excited about working with them to scale up the business – not only by adding stores, but also increasing same store revenue.”

 

Derron Winfrey, President of ECS, commented, “We are extremely excited about the integration with Surge and the opportunity to bring Surge’s product offering to our network.  Our business models are closely aligned and highly complementary. The significant and immediate synergies will allow us to scale much more rapidly, growing both the network and product offerings. ECS was built as a preferred partner to our ISO’s and independent retailers, catering to mom and pop shop owners by bringing them a level of service typically only found in the big box space.  Many people do not realize that independent store owners make up approximately 53% of the entire convenience store marketplace, so this is a significant, underserved addressable market.  We believe the level of service and product offerings that come from combining the strengths of Surge and ECS are unmatched in the industry and we are aligning our organizations to bring this advanced technology and service offering to our retail and ISO partners.”

 

 

About Surge Holdings, Inc:

Surge Holdings, Inc. is a retail supply chain company that provides a virtual distribution hub for retailers, as well as offers telecom services for low income customers and financial payment services for the unbanked and under-banked. Surge products are delivered through a nationwide network of convenience stores and corner markets connected to the recently launched SurgePays™ Network. (https://surgepays.com) This retail platform is designed to transform the traditional supply chain by providing local retailers seamless access to global products and to empower the corner store to select, order and fulfill delivery of wholesale goods from around the country. This platform also provides manufacturers a cost-effective and efficient platform to access local retailers.  For more information on Surge Holdings and its subsidiaries, please visit: https://surgeholdings.com.

*Annualized revenue is assumed if the Company had completed the acquisition on January 1 of the current fiscal period.  The $48.7M is based on the gross revenue of the acquired businesses for the fiscal year ended December 31, 2018.  The Company has not completed an audit on the value and annualized revenue is not a basis in accordance with accounting principles generally accepted in the United States.   Such amounts have not been audited by the Company.

 

Forward Looking Statements

 

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as “believes”, “expects”, “may”, “will”, “should”, “anticipates”, “plans”, or similar expressions or the negative of these terms and similar expressions are intended to identify forward-looking statements. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.

 

Investor Contact:

Crescendo Communications, LLC
Tel: 212-671-1020

Email: [email protected]

 

10/17/2019

Surge Holdings and BB King Music Company Announce Exclusive Agreement for Nationwide Distribution of Licensed Merchandise to Stores on the SurgePays™ Retail Network

As part of the BB King Icon Legacy Initiative, Surge will distribute a line of BB King licensed merchandise to retailers through the SurgePays™ Portal

BB King Music Company owns all of the rights to the likeness of BB King and related trademarks and copyrights representing the interests of the King Family through its $250 million estate and trust 

Memphis, TN – October 17, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for independent retailers, and the BB King Music Company, owner of all rights to BB King’s likeness and related trademarks and copyrights on behalf of the King Family Trust, a $250 million estate and trust, today announced an exclusive license agreement to distribute a line of BB King merchandise, including T-shirts, hats, and other products with the likeness of BB King, Lucille and/or approved song titles and lyrics related to the life and legacy of this iconic artist. The license agreement provides Surge the exclusive US rights to distribute these products to corner stores (c-stores, neighborhood stores), convenience stores, gas stations, bodegas and tiendas through the SurgePays™ Retail Network. This rollout is part of the new BB King Icon Legacy Initiative being implemented by the BB King Music Company for the King Family Trust.

Brian Cox, Chairman and CEO of Surge, commented, “This is an ideal brand for our retail partners and we could not be more excited about working with the BB King Music Company and the King family estate. There is a high demand to deliver top quality, low cost T-shirts to our customers who shop at the type of stores that are on the SurgePays Network and otherwise would not be able to afford the same clothing comfort and quality fabric we are able to offer by disrupting the traditional distribution model. T-shirts are both a high margin and high volume product in our marketplace, as well as a great upsell product we believe will help increase the revenue and profitability of locations on the SurgePays™ Network. Being from Memphis myself, I’m honored to align ourselves with the iconic brand power of the King of the Blues, which provides a product with immediate brand recognition. We look forward to building our relationship with the BB King Music Company to expand this line of products in the future.”

The Corporate Business Managers of the BB King Music Company, stated, “It has been a pleasure working with the Surge team and we look forward to benefitting from their approach to distribution through their unique technology platform. The Surge network provides us a virtually untapped market outside of our current traditional retail channels that would otherwise be cost prohibitive to penetrate. We are extremely excited to open this new distribution avenue and we share Surge’s goal of affordable quality. Eric Mitchell, grandson of BB King, Patty King, daughter of BB King, and family members Rita King, Shirley King, Claudette Robinson King, Willie King, as well as Barbra Winfree, daughter of BB King, are pleased to announce this nationwide rollout, as part of the first phase in the new BB King Icon Legacy Initiative to preserve the iconic name of BB King. We look forward to seeing BB King shirts on millions of fans, as well as developing new product offerings to bring to this substantial market.”

 About BB King Music Company:

BB King Music Company owns all rights and likeness to BB King and related trademarks and copyrights representing the interest of The King Family Estate, a $250 million estate and trust. The BB King Music company is dedicated to extending the legacy of this iconic American singer-songwriter known for his sophisticated style and grace that has influenced and impacted so many other artists and genres of music. The BB King Music Company is currently expanding the BB King brand in to many new consumer products and is committed to bringing the best of BB King’s life and legacy to the world.

About Surge Holdings, Inc:

Surge Holdings, Inc. is a retail supply chain company that provides a virtual distribution hub for retailers, as well as offer telecom services for low income customers and financial payment services for the unbanked and under-banked. Surge products are delivered through a nationwide network of convenience stores and corner markets connected to the recently launched SurgePays™ Network. (https://surgepays.com) This retail platform is designed to transform the traditional supply chain by providing local retailers seamless access to global products and to empower the corner store to select, order and fulfill delivery of wholesale goods from around the country. This platform also provides manufacturers a cost-effective and efficient platform to access local retailers.  For more information on Surge Holdings and its subsidiaries, please visit: https://surgeholdings.com.

Forward Looking Statements 

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as “believes”, “expects”, “may”, “will”, “should”, “anticipates”, “plans”, or similar expressions or the negative of these terms and similar expressions are intended to identify forward-looking statements. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.

Investor Contact:
Crescendo Communications, LLC
Tel: 212-671-1020
Email: [email protected]

10/03/2019

Surge Holdings Announces Asset Purchase Resulting in the Addition of 9,800 Retail Locations and an Expected $48.7 Million of Annualized Revenue*

Asset Purchase Agreement with GBT Technologies to Acquire its ECS Prepaid Wireless Business and Software Platform

Plan to Cross Market SurgePays™ Network Products,
SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits to the New 9,800 Retail Locations
 

Transaction expected to be immediately accretive to earnings

Memphis, TN – October 3, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for independent retailers, today announced it has entered into an agreement with GBT Technologies Inc. (OTC PINK: GTCH) to acquire the assets of its ECS Prepaid Business, Electronic Check Services business and the Central State Legal Services business.

Brian Cox, Chairman and CEO of Surge Holdings, commented, “This acquisition marks another major milestone for the Company, as we expect these businesses to immediately add over $48.7 million in annualized revenue, bringing our expected annualized revenue run rate to over $60.0 million.  This transaction also adds over 9,800 retail customer locations to which we can now cross market our SurgePays Network products, SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits. I look forward to integrating our operations with the experienced team and infrastructure at ECS, which we expect to generate significant operating synergies, including elimination of redundant expenses, to enhance profitability of the combined entities.  In the meantime, we continue gaining traction in the market and are moving ahead aggressively with the rollout of the SurgePays Network through AATAC, one of the largest private trade associations, representing over 110,000 retail locations.  The transaction also enhances our shareholders’ equity, which brings us another step closer to our near-term goal of listing on a national exchange.  We look forward to providing further updates on this integration as well as our rollout with AATAC and other organizations.”  

Surge Holdings paid $5 million in consideration – 3,333,333 shares of Surge Holdings common stock and a $4 million note.  Additional details regarding the transaction were included in yesterday’s Form 8-K filing with the Securities and Exchange Commission.

About Surge Holdings, Inc:

Surge Holdings, Inc. is a retail supply chain company that provides a virtual distribution hub for retailers, as well as offer telecom services for low income customers and financial payment services for the unbanked and under-banked. Surge products are delivered through a nationwide network of convenience stores and corner markets connected to the recently launched SurgePays™ Network. (https://surgepays.com) This retail platform is designed to transform the traditional supply chain by providing local retailers seamless access to global products and to empower the corner store to select, order and fulfill delivery of wholesale goods from around the country. This platform also provides manufacturers a cost-effective and efficient platform to access local retailers.  For more information on Surge Holdings and its subsidiaries, please visit: https://surgeholdings.com.

*Annualized revenue is assumed if the Company had completed the acquisition on January 1 of the current fiscal period.  The $48.7M is based on the gross revenue of the acquired businesses for the fiscal year ended December 31, 2018.  The Company has not completed an audit on the value and annualized revenue is not a basis in accordance with accounting principles generally accepted in the United States.   Such amounts have not been audited by the Company.

Forward Looking Statements 

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as “believes”, “expects”, “may”, “will”, “should”, “anticipates”, “plans”, or similar expressions or the negative of these terms and similar expressions are intended to identify forward-looking statements. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.

Investor Contact:
Crescendo Communications, LLC
Tel: 212-671-1020
Email: [email protected]

08/22/2019

SURGE HOLDINGS ANNOUNCES OFFICIAL LAUNCH OF THE SURGEPAYS™ VISA® PREPAID CARD

SurgePays™ Visa® Prepaid Card utilizes state of the art fintech to address the financial needs of the more than 68 million unbanked and underbanked adults in the United States

Offers flexibility including allowing employers to directly load payroll to employee’s cards as well as the ability to “Photo Load” paychecks and other checks

Free Personalized card, no credit check, no activation fee and no monthly maintenance fee

Memphis, TN – August 22, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for independent retailers, today announced that its wholly owned subsidiary, SurgePays Fintech, Inc., has completed development and successfully launched the SurgePays™ Visa® Prepaid Card (the “Card”).

In addition to the benefits of increased safety, security, and convenience of using the Card anywhere that accepts Visa®, some of the integrated life enhancing benefits for SurgePays Cardholders, include ATM withdrawals, the ability to accept direct loading wages and earnings from employers, loading the card by taking a picture of the front and back of paychecks and other checks (“PHOTO LOAD”), accessing accounts from the Card app on their mobile device; as well as TRANSCARD usage, which allows users to send money to friends and relatives locally and internationally.

In 2012, the FDIC issued a report stating that approximately 68 million adults living in the United States were unbanked or underbanked. The Card is designed to provide these people, and the additional immigrant population, a convenient way to manage their money starting with simple online signup that features no credit check, no activation fee, a free personalized card and no monthly minimum balance or monthly maintenance fees.  Customers can sign up for the card now at: www.surgepayscard.com.

The Company’s wholly owned subsidiary, SurgePays Fintech, Inc., is headed by Kenneth Reaves, Ph.D. Dr. Reaves has been a pioneer in the prepaid debit card industry while previously spearheading two of the most successful card launches and rollouts of the last 20 years.

Dr. Reaves, President of SurgePays Fintech, Inc., stated, “The SurgePays™ Visa® Prepaid Card is “THE ONLY CARD THAT YOU WILL NEED IN YOUR WALLET” to obtain and maintain control of your money.  The Card delivers our cardholders life enhancing features and services.  For the millions of individuals who wait in line to pay high fees to cash their checks, they now have an alternative to seamlessly load their checks onto their SurgePays™ Visa® Prepaid Card. Cardholders can add secondary cards to their account as a way to facilitate transfers to family members in the US and abroad.  The fintech solutions delivered through the SurgePays™ Visa® Prepaid Card will provide significant tangible benefits to so many in their daily activities.”

Brian Cox, Chairman and CEO of Surge Holdings, commented, “We believe Dr. Reaves has done a fabulous job utilizing his wisdom and experience to navigate the over one-year planning, development and integration of the Card. His team’s ability to position Surge with a strategic card in a sector that has significant barriers to entry reinforces our overall goal of increasing shareholder value. I am excited about the additional life enhancing benefits currently being integrated as well as the national rollout.”

Anthony Nuzzo, President of Surge Holdings, Inc stated, “Our competitive advantage is our ability to offer this card with a discounted fee structure with the goal to create a larger and more loyal customer base looking to stretch their money further by taking advantage of our other Surge products and rewards programs. We believe the Card will become an important profit center and we look forward to introducing additional differentiated products through our network in order to drive value for our partners and shareholders.”

About Surge Holdings, Inc:

Surge Holdings, Inc. is a retail supply chain company leveraging blockchain technology to provide a virtual distribution hub for retailers, as well as offer telecom services for low income customers and financial payment services for the unbanked and under-banked. Surge products are delivered through a nationwide network of convenience stores and corner markets connected to the SurgePays™ retail blockchain network.  This retail platform is designed to transform the traditional supply chain by providing local retailers seamless access to global products, and empowers the corner store to select, order and fulfill delivery of wholesale goods from around the country. This platform also provides manufacturers a cost-effective and efficient platform to access local retailers.  For more information on Surge Holdings and its subsidiaries, please visit: https://surgeholdings.com.

Forward Looking Statements

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as “believes”, “expects”, “may”, “will”, “should”, “anticipates”, “plans”, or similar expressions or the negative of these terms and similar expressions are intended to identify forward-looking statements.   Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission.
The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.

Investor Contact:
Crescendo Communications, LLC
Tel: 212-671-1020
Email: [email protected]

08/15/2019

SURGE HOLDINGS REPORTS PROGRESS ON PHASE 1 ROLLOUT OF SURGEPAYS™ NETWORK AND EXPANSION OF FACILITIES FOR ACCELERATED GROWTH; PROVIDES UPDATE FOR THE SECOND QUARTER OF 2019

Completes installation of SurgePays™ Network in first stores

Initial product placement orders for 250,000 SurgePhones and 500,000 SIM Starter Kits for planned deployment into 40,000 stores

Announces $2.8 million of purchase orders related to SurgePays™ Network

Memphis, TN – August 15, 2019 – Surge Holdings, Inc. (“Surge”) (OTCQB: SURG), developer of the SurgePays™ Network for independent retailers, today provided a business update and announced financial results for the second quarter ended June 30, 2019.

Brian Cox, CEO and Chairman of Surge Holdings, commented, “I am pleased that we have commenced our rollout with AATAC, one of the largest private trade associations, representing over 110,000 retail locations. They are truly an ideal partner—providing the ability to accelerate our rollout across the United States.  The first 750 stores being installed in Tampa provide us the real data to refine the installation process and create efficiencies to ramp to over 3,000 stores a month. We have invested in the expansion of both our Memphis fulfillment facilities and our Centercom operations center in Central America to accommodate our expected growth. Having built industry leading operations in the past, our team had the experience to foresee what we believe will be necessary to support our growth.  We believe we now have everything in place to execute and are focused on growing both our retail distribution base as well as adding additional products to the SurgePays™ Network, a first of its kind fintech network connecting independent retailers, manufacturers and consumers.  Our phase one with AATAC has already resulted in approximately $2.8 million in purchase orders and we look forward to quickly scaling into phase two and additional target markets.”

“Additionally, AATAC representatives are providing their network of retailers our point-of-sale display to prominently showcase the SurgePhone and SIM Card products in store, while training merchants on the SurgePays™ Network. Our SurgePays™ Network offers the merchant a wholesale marketplace to order products from regional manufacturers.  At the same time, manufacturers are now able to distribute their products nationwide in a more efficient and effective manner. The platform will also allow us to market a wide variety of our own value-added products including SurgePhone Wireless, and, upon launch, the SurgePays™ Prepaid Visa® card. In fact, the initial product placement orders to deploy into 40,000 stores is 250,000 SurgePhones and 500,000 SIM Starter Kits.”

“During the quarter, we announced the signing of two distribution agreements for products we have added to our platform. In early June, we reported signing an agreement with Weekend Warrior Wellness, a brand of Contigo Products, LLC, to distribute its ‘5-Hour Hemp Energy Shots,’ ‘Energy Mints with CBD’ and ‘Mint Strips with CBD’ through our SurgePays™ Network. In addition to Weekend Warrior Wellness, we announced in late June that we entered into an agreement with Brimhall Foods Company, Inc., a leading regional manufacturer and distributor of quality snack food items throughout the Southeast under the BRIM’S brand, to distribute its BRIM’S snack foods nationwide through our SurgePays™ Network. We are excited about expanding the products we distribute as we believe this will provide us an important incremental revenue stream, in addition to providing a new profit center for the independent store owners.”

“It is important to note that we have begun to transition our telecom business away from True Wireless.  As per our plan, we expect to see a steady decline in True Wireless as SurgePhone and SurgePays™ revenues increase, due to the fact we are reallocating resources towards those businesses. While the True Wireless business played an important role in the past and has generated valuable cash flow to fund our activities, we believe the opportunities presented by the SurgePays™ Network dwarf those of True Wireless, while also eliminating our reliance on government subsidies and replacing it in short order with high margin recurring revenue. I have spent years developing an ad driven free service that yields equivalent or higher revenues than our government subsidized reimbursements.  I cannot imagine a better offering to rapidly grow our customer base than a free basic plan.  As a result, we are extremely encouraged by the outlook for the Company and feedback we have received from the stores that have already implemented our platform,” concluded Mr. Cox.

About Surge Holdings, Inc:

Surge Holdings, Inc. is a retail supply chain company leveraging blockchain technology to provide a virtual distribution hub for retailers, as well as offer telecom services for low income customers and financial payment services for the unbanked and under-banked. Surge products are delivered through a nationwide network of convenience stores and corner markets connected to the SurgePays™ retail blockchain network.  This retail platform is designed to transform the traditional supply chain by providing local retailers seamless access to global products, and empowers the corner store to select, order and fulfill delivery of wholesale goods from around the country. This platform also provides manufacturers a cost-effective and efficient platform to access local retailers.  For more information on Surge Holdings and its subsidiaries, please visit: https://surgeholdings.com.

Forward Looking Statements

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as “believes”, “expects”, “may”, “will”, “should”, “anticipates”, “plans”, or similar expressions or the negative of these terms and similar expressions are intended to identify forward-looking statements.   Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.

Investor Contact:
Crescendo Communications, LLC
Tel: 212-671-1020
Email: [email protected]

08/14/2019

SURGE HOLDINGS ON TRACK TO BE IN 100,000 STORES BY 2021

Surge Holdings Inc (OTCQB: SURG) CEO Brian Cox tells Proactive the Tennessee-based company has launched its SurgePays Network Installations together with trade organization AATAC.