Proceeds to Be Used to Increase Market Penetration and Sales

TOCCOA, GA / ACCESSWIRE / January 6, 2021 / Galaxy Next Generation, Inc. (OTCQB:GAXY) ("Galaxy" or the "Company), a provider of interactive learning technology solutions, today announced that it entered into a common stock purchase agreement and registration rights agreement (together, the "Agreements") with an institutional investor for up to $10 million worth of shares issuable over a 24-month period time, based upon the current market price of the stock at the time. Separately, upon entering into the Agreements, the investor made an initial fixed price equity investment of $500,000, which is subject to Rule 144 and a 6-month holding period.

Magen McGahee, Galaxy's Chief Financial Officer, stated, "I want to reiterate that this investment is a step up for us, as the upfront capital of $500,000 is substantial for us to continue to grow our sales and it is in common stock equity at a fixed price. Of note, the common stock equity agreement will provide us additional growth capital to increase our sales and is at our control and discretion in regards to the amounts and timing. We believe this financing is not dilutive to current shareholders and enhances our value by increasing our cash and shareholder equity positions over time. It better positions us toward our capital markets goal for 2021 of an uplist to a major U.S. national exhange. At this time, the Company has yet to decide on any recapitalization structure or timing, as our Board and management continue to believe out stock is undervalued. This is supported by stock purchases made in the open market by management in November and December 2020."

Gary LeCroy, Galaxy's Chief Executive Officer, commented, "We are extremely happy to partner with this institutional investor in regards to a common stock equity agreement. This is a major milestone for our Company as we move away from toxic variable priced convertible debt. Galaxy is an emerging growth company going after a multi-billion dollar market opportunity. If we had more capital to deploy we could be growing much faster and this is a market that is rewarding growth. We are confident that the existing capital structure will support our operational cash flow requirements while providing the flexibility to achieve our growth targets. Plenty of high profile companies utilize similar equity agreement including Tesla, Roku, Ballard Power among others, which have all seen their stocks perform very well post announcements. Of extreme importance to us was the faith and enthusiasm of the investor to provide a $500,000 upfront investment at a fixed equity price and our control over the timing and amounts of future equity capital which allows us to take advantage of sudden increases in our stock price."

Following the initial investment, and subject to the conditions of the Agreements, including that a registration statement is filed and declared effective with the Securities and Exchange Commission the Company has the right, in its sole discretion, to sell up to an additional $10 million worth of shares over a 24-month period. The Company will control the timing and amount of any sales to the investor and the investor is obligated to make purchases in accordance with the Agreements.

There are no upper limits to the price per share the investor may pay to purchase common stock and the purchase price of the shares will be based on the then prevailing market prices of the Company's shares at the time of each sale. No warrants, derivatives, financial or business covenants are associated with the Agreements.

A more detailed description of the Agreements is set forth in Galaxy's Current Reports on Form 8-K as filed with the SEC.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities laws of any such jurisdiction.

About Galaxy Next Generation, Inc.
Galaxy Next Generation (OTCQB:GAXY) is a provider of interactive learning technology solutions that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy's distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company's products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products - comprising nearly 90% of Galaxy's sales.

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Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE: Galaxy Next Generation, Inc.

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