HOLLYWOOD, June 27, 2014 (GLOBE NEWSWIRE) -- The Movie & Music Network (OTCQB:DIDG), the Hollywood, California-based online content provider, has paid off $27,500 of convertible debt due Asher Enterprises on June 27th, 2014. This represented a portion of the company's current debt structure. The payoff carried a premium to the principal amount as well as interest. The Music & Movie Network has historically relied on convertible debt to fund operations.
Stated Martin W. Greenwald, CEO, "The pay down of outstanding convertible debt is an important event for our shareholders. Like all small companies starved for operating capital, we rely on convertible debt lenders. When notes become due 6 months after issuance, companies have the option of paying the note or converting the debt into discounted free trading stock. Over the past year the company borrowed and paid back with stock conversions. This unfortunately swelled our issued and outstanding shares, which now number approximately 160,000,000 shares."
The Movie & Music Network provides film and television content to monthly subscribers who access the service online or through the increasingly popular Roku set-top box format.
Greenwald continued, "The board of directors of The Digital Development Group has decided to take the path of having paid the current note and paying upcoming notes, when prudent, before they convert. By doing so, we're able to keep our share count under control and deliver more value to our shareholders."
"Our income continues to climb," he noted. "We're looking forward to the eminent launch of MJ360, our cannabis channel, as well as the rollout of our Apple iOS application. The iOS app has the potential to open up a huge portion of the mobile market, barely touched by the company."
"At the end of the day," he added, "the opportunity to pay off future notes as they come due will be driven—entirely--by an increasing revenue stream coupled with smart management. Revenues continue to climb and we are excited about reporting growth for the quarter that ends next week. We are beyond excited at the prospects for the second half that starts July 1st."
Greenwald concluded, "Increasing cash-flow, simply said, pays down company debt. In polling our shareholders they unanimously support this strategy."
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