Bantek CEO Releases Letter Shareholders

Bantek, Inc. (OTCPINK:DRUS):

Dear Shareholders,

I would like to share with you some of the noteworthy events of this past year. At times we struggled, but we overcame obstacles and grew the business. Here are some of our accomplishments:

Bantek Corporate

We experienced many significant events this year. First and foremost, we restructured our senior secured debt with TCA Global Credit Master Fund, LP ultimately taking out us of default, extending our repayment term and lowering our interest rate. We truly value our relationship with TCA Global Credit Master Fund, LP, and we ultimately strive to be their greatest success story.

We hired an experienced CFO – Jeff L. Garon. We look to Jeff to help us get to our ultimate destination: NASDAQ or NYSE.

We settled multiple distracting and annoying lawsuits. It’s imperative that our focus remains targeted on building our business. One significant settled lawsuit stemmed from our previous desire to manufacture and sell drone products internationally. We see significant business here in the United States. There is no need to pursue expensive and often fruitless international business.

We significantly reduced our corporate debt and expenses. As a young public company, we made some costly contractual mistakes. This resulted in our being overcharged for certain services and in some toxic business relationships. We have made the necessary corrections and are now functioning efficiently and at reduced costs while complying with all mandated SEC regulations.

Drones USA

Over the past year, we changed our strategic direction from a drone manufacturer to a drone reseller. This significantly reduced our overhead by approximately $500,000 a year. We also changed our customer focus from international to national thus greatly reducing travel and sales acquisitions expenses.

At Drone USA, we developed a sophisticated ecommerce website coupled with an aggressive digital media promotion with the intent of generating nationwide drone sales at low acquisition costs. In addition, we established relationships with various law enforcement agencies in the tri-state area. We see this market just starting to take off. We are training police departments to safely implement drone programs in their organizations. Police are just beginning to see how drones can make them more efficient. Our projected Drone USA sales goals:

  • $500,000 in revenue 2019, $750,000 in revenue 2020, 1,200,000 revenue in 2021, 2,500,000 in revenue 2022. Average profit margin 25%.

Howco Distributing Co.

At Howco, we implemented s profit sharing plan. At Bantek, we have simple philosophy: the longer we keep our employees, the longer we will keep our customers and longer we keep our customers the more profitable they become. The Howco employees embraced the plan wholeheartedly. Our projected sales goals for Howco are:

  • We intent to boost Howco sales via re-structuring, implementation of incentives and increasing our profit percentage. Results expected – Additional revenue of $2,400,000 in 2019, $4,000,000 in 2020, $5,000,000 in 2021, $7,500,000 in 2022, $9,000,000 in 2023. In addition, expectation is to raise blended profit margin to an average of 7.5% across the board.

Environmental

We started growing our environmental division by reselling Thermaxx Jackets and services to hospitals, universities and manufacturers in New Jersey and Eastern Pennsylvania. As we develop relationships with university and hospital managers, we will undoubtedly see other opportunities to sell them additional goods and services. These are the project Thermaxx profits:

  • We expect to net $250,000 in 2019, $500,000 in 2020, $1,000,000 in 2021, $1,650,000 in 2022, $2,000,000 in 2023.

Forward-Looking Statements

Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of growth; and assumptions relating to the foregoing. Such forward-looking statements are generally qualified by terms such as: “plans, “anticipates,” “expects,” “believes” or similar words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. These factors are discussed in greater detail in our Form 10 filed with the U.S. Securities and Exchange Commission.

Thank you all for your support.

Respectfully Submitted,

Michael Bannon
Chairman/CEO