Experience Art and Design Inc (OTCMKTS:EXAD) Making Big M&A Moves

Experience Art and Design Inc (OTCMKTS:EXAD), which operates in the dry cleaning services market, seems to have been reporting interesting news recently. The list of news include the most recent quarterly earnings, a deal under which the company would acquire the revenue generating subsidiary of Bahamas Development Corp., and the acquisition of large amount of shares by Caiazzo Eugene, President of the company. We will provide all the details in this article, but first of all, have a look at the share price action: 1 year chart for EXADBusinessEXAD is focused on two business models: the re-work of existing oil wells and dry cleaners. Two subsidiaries run these different activities; TransAmerican Oil, and Metropolitan Dry Cleaners (Metro) respectively. Both companies signed Letter of Intents with other companies. The most active seems to be Metro, which specializes in providing dry cleaning, laundry, and garment alterations as well as regular home pickup delivery services.The company is now in the process of acquiring assets of BAHAMAS DEV CORP COM USD0.0001 (OTCMKTS:BDCI). The merger was announced on June 20, 2017 and it was said that it will be completed via a Triangular Reverse Merger. It was remarked in another filing that the companies needed the financing to complete the transactions.Recent DevelopmentsThe company announced on July 5, 2017 that it had elected fresh management. Eugene Caiazzo was elected as company’s sole Officer and as a Director, whereas Gary Brown was elected to serve as a Director of the company. The previous CEO, Mr. Dwyer, resigned from his positions in the company and returned 5 million shares of Series A Preferred stock. For those thinking that the return of the shares was good for the share price, wait a minute, as the new CEO obtained the same amount of shares. Hence, the amount of shares outstanding remained the same.Let's revisit a bit the background of Mr. Caiazzo. He was president of Native Outfitters, a Performance Apparel Company, which doubled its output capacity under the presidency of Mr. Caiazzo. Additionally, sales and the profitability reached all-time records. He has been associated with big corporations such as Coca-Cola, Panasonic, Sony, or HP. Finally, he attended Rutgers University and Majored in Philosophy in 1982.The profile of the other director, Mr. Brown, is also promising. The company provided a lot of information about his previous expertise, but we highlight that he has been employed with the Department of Defense as a Deputy Director in Operations Management and served as a member of the United States Armed Forces both in the U.S. Army and U.S. Air Force Reserves. He holds a Master of Science degree in Organizational Leadership and Management from Regis University located in Denver, Colorado.On July 24, 2017, the company released the most interesting announcement. Wells Fargo proposed the company a total of $325,000 to finance the company's M&A activities. Additionally, a Line of Credit for $75,000 was also offered. This is obviously good news as the company and the CEO showed the market that financial institutions trust operations and willing to provide credit. The market reacted well to the announcement. 2 months chart for EXADThe news about the financing was not over. On August 15, 2017, the company announced that it had secured a $200,000 short term bridge loan. As we said earlier, support from financial institutions is always welcome by the market, which pushed up the share price on the announcement date. Additionally, the merger with BAHAMAS DEV CORP COM USD0.0001 (OTCMKTS:BDCI) looks to have the financing needed.On top of it, we could see in one of the most recent filings that the CEO, Mr. Caiazzo, was buying more shares. In our opinion, the message to the market is that he believes that the transaction will close successfully. This is a good news. The filings can be found here and here.Finally, on August 21, 2017, the most recent 10-Q was released. We checked it to find some information regarding the transaction with BDCI, but we did not find new information. The following was said about it, please note the revenues estimated. If the companies obtain those objectives, the share price could creep up:

"The Company is in the process of completing a Triangular Reverse Merger to acquire one of the companies from BDCI. Once completed an asset purchase will be finalized for another company also operating the Performance Wear sector. The combined companies currently generating approximately $2.7 million on an annualized basis, which 3 projections estimating revenues of $3.3 million." Source

ConclusionEXAD is delivering interesting news and the market is reacting by pushing up the share price. The transaction with BDCI is the most relevant that we need to follow. So far, everything seems to be working out. Big financial institutions are providing the necessary financing and the company is close to completing its reverse merger. We encourage readers to stay alert, as the announcement of the closing may create a share price jump.We will be updating our subscribers as soon as we know more. For the latest updates on EXAD, sign up below!Image courtesy of iconoclast020 via FlickrDisclosure: We have no position in EXAD and have not been compensated for this article.