UAT Group Unwinds Previous Acquisitions

TAMPA, FL / ACCESSWIRE / July 28, 2023 / Umbra Applied Technologies Group, Inc (OTC PINK:UATG) (UAT Group), announced today that it has divested its corporate interests in NextCast and Bacter Scientific. Under previous agreements, UAT Group held a 26% interest in Next Casting Technologies Inc and a 10% interest in Bacter Scientific Inc. The acquisitions represent a $10.2M debt obligation that will no longer be reflected on UAT Groups financial statements going forward.

Chief Executive Officer, Alex Umbra commented, "In an effort to streamline the Company's fiscal posture and better position UAT Group as an operationally bankable conglomerate, we are aggressively consolidating interests and resources. This begins with but, does not end with, repurposing previously allocated resources to existing interests and/or assets with a greater return potential. Originally, we accepted minority positions with the understanding that their management would perform as agreed upon. We reluctantly took this divestiture action after their management failed to deliver promised results or take corrective action".

The Company further indicated that additional reviews are being conducted of all interests and assets which have not performed as initially agreed upon due to supply chain challenges, manufacturing delays due to shortages in skilled labor availability, management strain, increasing costs and late paying customers. Successful sales growth has been stunted on occasion due to payment delays, labor shortages and rising costs which has ultimately eroded margins.

The Company has begun re-allocating corporate resources to bolster existing assets with the greatest potential for both growth and industry impact. The Company had a policy of ongoing evaluation of new opportunities, particularly those which related to existing business. UAT Group will continue to evaluate new opportunities in the future, however the CEO has put a moratorium on new acquisitions through the end of the year.

Chief Financial Officer, Thomas Crom stated, "UAT Group has paid significant amounts (in excess of $17 million) for intellectual property which failed to deliver their promised results. We have already contacted those companies regarding their failure with the objective to see definitive results or return of our capital investment. We recognize that this might be viewed as an aggressive approach, but we believe we were left with no alternatives, given the substantial delays and lack of corrective action."