Garmatex Holdings Ltd (OTCMKTS: GRMX) Hits The OTC

Garmatex Holdings Ltd (OTCMKTS: GRMX) just put out a press release stating that "management is unaware of any undisclosed material change in the Company's operations that would account for the increase in market activity. The Company advises that, other than the entry into a master sublicense agreement with Garmatex Technologies, Inc., as announced on March 15, 2017, there have been no material changes with respect to the Company." Whenever a company issues such a statement on the OTC Markets, it means only one thing - there's a big promo campaign behind the scenes.As you can see from the chart below, GRMX has been a dormant ticker until this month. Out of nowhere, a flurry of activity has come into the stock and it's certainly not be driving entirely by the recent press releases. Due to the recent activity, we're taking a closer look to see what we can find out about GRMX.The company's profile on OTC Markets says that Garmatex Holdings Ltd is an innovative developer and supplier of scientifically-engineered fabric technologies. Its mission is to provide new fabric and design solutions for the everyday problems of the growing global consumer market.So far, there have been just three press releases issued by the company, all happening this month. The first said that the company completed a comprehensive Licensing Agreement with Garmatex Technologies, Inc., a British Columbia developer and supplier of scientifically-engineered fabric technologies. The binding Agreement grants the Company the non-exclusive worldwide rights to manufacture, market, distribute, and sell products utilizing Garmatex's revolutionary intelligent performance fabrics. Garmatex's fabrics have wide applications in multiple clothing and textile categories, including sporting apparel, medical, sleepwear, linens, undergarments, military, designer wear, protective, industrial, safety, and concealment.According to the 8-K, GRMX is no longer classified as a shell company due to the transaction. The company now has the rights to the design, development and manufacturing of various scientifically-engineered fabric technologies and performance technologies; including a patented T3® design, Bact-Out®, CoolSkin®, WarmSkin®, Kottinu™, ColdSkin™, SteelSkin™, Satinu™, CamoSkin™, RecoverySkin™, SlimSkin™, AbsorbSkin™ and IceSkin™. As part of the transaction, GRMX cancelled various loans to GTBC in the aggregate amount of C$953,988. GRMX says that its business model is:

We plan to provide performance fabric solutions in virtually every sector that has textile applications. Our primary strategy is to deploy our performance fabrics as a premium ingredient brand, similar to Gore-Tex® in the outerwear market, or akin to Intel® in the computer space. We believe that our future fabrics will be superior in performance relative to current market “standards” and have a wide range of applications in multiple clothing and textile categories including, but not limited to, sports apparel, medical, sleepwear, linens, undergarments, military, designer wear, protective, industrial and first responders. Our business model is to co-develop fabric with manufacturers to obtain exclusive licenses of technology and purchase fabric technology to build on our technology portfolio. We plan to commercialize these inventions by selling bolts of fabric directly to retailers and wholesalers. We plan to control the proprietary process of the technology for IP protection and do not intend to own any manufacturing facilities, which will effectively allow us to scale.

This all sounds good, but here's the reality. GRMX has just one employee.

Our company is currently operated by Devon Loosdrecht, our CEO, president, chief financial officer, treasurer and sole director. We do not anticipate hiring employees in the near future. We intend to employ CEO of GTBC to implement our intended business plan and plan of operations.

The company has no history in the garment business.

The Company has never been engaged in the fabric sale. There could be limited value to the current portfolio of technologies and raise significant doubt about our commercial viability. Our future operations are dependent upon many factors, including the ability to create sales from its current portfolio of technology.

Funding?

We will need substantial funding for our planned operations. No assurances can be given that we will be able to raise the additional funding that will be required for such activities. To meet such funding requirements, we will be required to undertake additional equity financing, which would be dilutive to shareholders. Debt financing, if available, may also involve restrictions on financing and operating activities. There is no assurance that additional financing will be available on terms acceptable to us or at all. If we are unable to obtain additional financing as needed, we will be required to reduce the scope of our operations.

Revenues?

We generated no revenues for the years April 30, 2016 and 2015. We do not expect to generate revenues until we have established a new business plan and operations and successfully implemented such business plan.

CEO Experience?

Since 2008, Mr. Loosdrecht has been the Business-to-Business Sales Consultant for Meadow Valley Meats in Chilliwack, British Columbia. In that role Mr. Loosdrecht conducts market research and analysis to deliver customized solutions aligned with daily, weekly and monthly targets, establishes and maintains strategic relations with clients to identify needs, discusses requirements and handles negotiations on payment terms, including credit and limits. Mr. Loosdrecht also served as the special project coordinator for Meadow Valley Meats from January 2007 and September 2008, in which role he contributed to multiple divisions to ensure production compliance with health and safety guidelines determined by local health authorities, managed equipment controls in terms of adherence to Health Canada guidelines and delivered supervision and guidance to production staff and equipment to align with critical control points. Mr. Loosdrecht holds a Bachelors of Business Administration degree from the University of the Fraser Valley, Business Administration, located in Abbotsford, British Columbia. Mr. Loosdrecht has not been a director or officer of any reporting company during the last five years.

Currently trading with a market cap of $32 million, GRMX looks set to create a lot of bagholders when the promo dollars run dry. The company is run by a former meat salesman with no prior public company experience nor experience in the fabric industry. The writing is on the wall. Everything is spelled out above.We will be updating our subscribers as soon as we know more. For the latest updates on GRMX, sign up below!Disclosure: We have no position in GRMX and have not been compensated for this article.