Includes Disclosure of Unrelated Third Party Interpleader Litigation
RENO, NV / ACCESSWIRE / February 12, 2021 / Ludwig Enterprises Inc. (OTCPINK:LUDG) and Direct Mortgage Investors, Inc. have mutually determined it to be in the best interest of all parties to unwind the union of the companies effective immediately.
Direct Mortgage Investors, Inc. (Direct) since 2019 had been a wholly owned subsidiary of Ludwig Enterprises, Inc. (Ludwig) subject to certain terms and conditions.
Ludwig intends to return to its core business of technology and health related fields.
Direct under its current management will continue its commitment to the residential mortgage sector.
About Ludwig: Ludwig Enterprises, Inc. has been an innovative technology company. At this time Ludwig is endeavoring to return to and expand healthy living and other technology products. The Board of Directors believes this course change to be in the best interest of Ludwig shareholders.
In the short term, as a result of the unwinding, Ludwig's balance sheet will be impaired suffering an asset loss in excess of $600,000, however, the Board believes the long term benefits may enhance shareholder value.
Disclosure: For purposes of disclosure and independent of this unwinding, Ludwig has been made aware of a third party litigation involving ownership of approximately (28,000,000) Twenty-Eight Million Ludwig common tradable shares currently deposited in CEDE or one or more Broker Dealers. Neither Ludwig nor Direct are named parties, nor in any manner involved in the litigation. The company is however monitoring the outcome of the case.
About Direct: Direct intends to return to being a privately held mortgage business; however after being part of a public traded company, Direct's management has stated it is considering entry into the public market.
Based in Chicago IL, Direct is a mortgage broker that was formed via multiple brokers and offices consolidating themselves in 2017. Direct is licensed in 14 states. The firm has approximately 80 loan officers with multiple offices in Illinois and Florida. The executives of Direct, on average have more than twenty years of experience in the mortgage business. During fiscal year 2018 Direct did $2.4 million in revenue. For 2019 year Direct reported revenues in excess of $6 million. 2020 has not yet been disclosed.
SAFE HARBOR
Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made by Ludwig Enterprises, Inc. are not a guarantee of future performance. This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of Ludwig Enterprises, Inc. and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition.
CONTACT:
Ludwig Enterprises
Jean Cherubin
786-235-9026
[email protected]
SOURCE: Ludwig Enterprises, Inc.