A Stark Pivot: Company Moves from Apparel to…Data Centers

Stark Focus Group has sold apparel, pursued drones and now wants to develop AI data centers. Its latest plan puts a small, publicly traded company into a crowded race for land and electricity before it has secured either.

The company says it is negotiating a data center venture in South Asia and searching for sites across the United States. Its new strategy filing describes a possible business built around “powered-shell” facilities: buildings with power and fiber connections that customers would finish and fill with their own computing equipment.

For now, the venture rests on a nonbinding memorandum of understanding. Stark says it owns or leases no real estate, has generated no data center revenue and has no history of developing data center assets.

The shift followed a June change of control. MJG Polo LLC paid $355,000 to buy 8.3 million Stark shares from the former controlling shareholder, giving it 83.43 percent of the shares then outstanding, according to the company’s change-of-control filings. MJG Polo paid about 4.3 cents a share. John Lipman became chief executive and chief financial officer; David Rosenberg became chairman. Both manage MJG Polo and work in investment banking.

Stark was incorporated in Nevada in 2018. It acquired Hong Kong apparel supplier Common Design the following year, sold it in 2021, then announced a move into drones under the RevoluDrones brand in 2022. The company’s quarterly report for the period ended June 30 says it has had no revenue-generating operations since selling the apparel business.

Pivots from other industries to data center buildout is not unheard of. However, most companies that make the switch are in industries like bitcoin mining, where infrastructure and energy is already in place. See: From Bitcoin Bankruptcy to Data Center Billions in West Texas.

The new management team moved quickly. Within two weeks of taking control, Stark says it had engaged advisers and begun negotiating the South Asia venture with a major data infrastructure provider. It signed the memorandum with that provider and another party on July 20. The filing does not identify the partners, disclose a site, specify a power supply or say how the project would be financed. Because the memorandum is nonbinding, it does not establish that the parties will build anything together.

In the United States, Stark lists prospects rather than acquisitions. Its search has included a South Dakota opportunity with 15 megawatts available on a 400-megawatt line, a 34-site portfolio, two 75-megawatt Texas power studies, locations in Mississippi, Kansas and Iowa, and another South Dakota site with about 50 megawatts. It also cites a 160-acre Texas property with an earlier 140-megawatt power study and a 750-megawatt colocation proposal.

Those figures describe opportunities Stark says it has assessed. They are not capacity the company controls. A prior power study or proposal does not provide a data center with delivered electricity, permits, financing, or a customer. Stark says it would seek sites with grid access or room for power generation, then develop them for specific customers after acquiring land and obtaining the necessary approvals. It could also sell powered land, sell electricity to other large users, or sell a project during development.

That flexibility reflects the market Stark is entering. Developers are competing for sites where large amounts of electricity can be brought online, while equipment, construction and interconnection costs remain substantial. Stark names power availability, the price of construction and access to components such as transformers, generators and turbines among the factors that could determine whether its projects make money.

The company has little financial room to absorb delays. Its June 30 balance sheet showed no cash. Stark reported $65,004 in net income for the first six months of 2026, but that result came from an $88,612 gain recorded when convertible notes held by an unrelated party were terminated in June. The company reported no revenue during the period and used $24,295 in operating cash. Its quarterly report raised substantial doubt about its ability to continue as a going concern.

Stark raised $400,000 in gross proceeds through a July private placement, issuing 8.4 million shares to two entities, Great Ocean Invest LLC and HCDC LLC, over which the filing says Shawn Uldridge may be considered to have voting and investment control. The July investors paid about 4.8 cents a share. 

That financing came after the June balance-sheet date, so the zero-cash figure does not describe its position after the sale. The new shares also reduced MJG Polo’s ownership to 45.24% of shares outstanding as of Sept. 21, according to Stark’s filing. The two placement buyers together hold 45.78%, a larger stake than MJG Polo’s. Stark says its officers, directors and holders of more than 5% controlled about 91% of the vote as of Sept. 21. Stark says it will need substantial additional capital to build data centers.

The company is starting with a lean organization. As of Sept. 21, it reported two people acting as employees, board members, advisers or contractors, with outside consultants supplying additional expertise. Its shares trade on the OTC Pink market under SKFG.

Stark also reported a change in its outside auditor in a Sept. 16 filing.

Stark’s proposed business has a clear place in the AI buildout: find power, secure land and prepare facilities for customers that need computing capacity. The filing shows how far the company must travel to put that plan into operation. The South Asia agreement must become a binding project, one or more U.S. searches must produce controllable sites, and Stark must secure power, permits, customers and financing. Until then, its entry into the data center race remains a plan backed by a small financing round and a long list of prospective locations.