M&A - UMeWorld Ltd

Form Type: 20-F

Filing Date: 2025-01-14

Corporate Action: Acquisition

Type: New

Accession Number: 000147793225000220

Filing Summary: UMeWorld Limited, incorporated in the British Virgin Islands, reports their annual results for the fiscal year ending September 30, 2024. The company has seen a considerable decline in revenues from $1.4 million in 2023 to $941,000 in 2024 and noted significant operating losses of $224.5 million. As of September 30, 2024, they have 111,785,005 shares outstanding, reflecting a challenging financial position with total liabilities at $487.7 million against assets of $122.0 million, resulting in a total stockholders’ deficit of $365.7 million. The report indicates that UMeWorld is in an early stage of transitioning into the wellness industry and emphasizes the potential risks associated with their acquisition strategy. The management anticipates pursuing acquisitions to support growth but acknowledges the inherent risks such as market integration challenges, and competition, which may impede their business strategy. The financial overview suggests the necessity for capital raising to support future potential acquisitions, which could dilute shareholders' value or increase debt burdens.