SurgePays forms Redline Wireless joint venture with 20,000-dealer network

SurgePays, Inc. (NASDAQ: SURG) has formed a joint venture called Redline Wireless Group, LLC, combining its mobile virtual network operator infrastructure with a national independent prepaid wireless dealer network of more than 20,000 active dealers.

SurgePays holds a 51% controlling interest in Redline, a Wyoming limited liability company, with the remaining 49% held by an unnamed wireless master distribution organization described as one of the largest in the United States. The company said it intends to consolidate Redline as a majority-owned subsidiary under Accounting Standards Codification 810, with the partner's stake reported as a noncontrolling interest.

Redline will combine SurgePays' MVNO infrastructure, including its LinkUp Mobile consumer brand, billing and provisioning systems, customer service, and operations center, with the contributing member's national dealer distribution channel.

According to a statement from the Bartlett, Tennessee-based company, both parties share a goal of reaching more than 1 million subscribers. SurgePays also said the venture is expected to be cash flow positive in its first month of commercial operations, though this projection is forward-looking and subject to risk.

"Both parties share the goal of reaching more than 1 million subscribers in the coming years. Even our most conservative internal models show Redline generating more revenue and profit by month 18 than any prior SurgePays subsidiary has achieved," said Brian Cox, Chairman and Chief Executive Officer of SurgePays.

The information in this article is based on a press release issued by SurgePays.

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