NEW YORK, July 20, 2017 (GLOBE NEWSWIRE) -- Digital Arts Media Network, Inc. (OTCMKTS:DATI), a specialized tech accelerator leveraging the Public Accelerator-Incubator (PAI) model, has elected to retire 18,526,879 Shares of its common stock, bringing the current outstanding down to approximately 105M shares as part of an effort to build shareholder confidence and substantiate value through a Share Reduction Program.
“The goal is to reduce the outstanding share count by an additional 60M to 80M shares,” said Ajene Watson, Chairman and CEO of Digital Arts Media Network, Inc. (the “Company”). “We believe an aggressive share reduction will bring our cap table in line with anticipated valuations derived from our Angels+ and Invest+ Programs.”
The Company is working with its largest shareholder, AJENE WATSON, LLC – principally owned by the Company’s CEO – to reduce its holdings by more than 70%. The reduction will occur as the Company achieves various milestones; such as the ramp-up of its Angels+ and Invest+ Programs and the acquisition of executive talent.
Mr. Watson continued, “Most of the outstanding shares will be reduced in direct correlation to the aggressive ramp up of the Angels+ and Invest+ Programs in an effort to strengthen intrinsic value and avoid dilution to the shareholders. These programs will quickly build the Company’s portfolio of start-ups, whose value could potentially increase exponentially with each subsequent round of capital raised. This was demonstrated with our previous OpenVision Labs investment.”
OpenVision Labs (“OVL”) received a capital investment from the Company at a $2M valuation during the Company’s development and initial test of its business model. OVL’s last valuation was placed at $5M; more than twice that of where the Company invested and potentially an even greater value today. With Digital Arts Media Network, Inc. having an equity ownership of 10% in OpenVision Labs, the Company has an unrealized gain of roughly $440k. With an aggressive push toward development and additional rounds of capital through the Invest+ Program, “OVL’s valuation trajectory is very exciting,” stated Mr. Watson.
“Even at a minimum, if we can achieve the same results just 10 times, with various start-ups, in a 12-month period, the Company’s unrealized gains from its portfolio of start-ups can easily push into the high eight figures. Having our cap table aligned with our shareholder base should positively impact shareholder confidence and substantiate the overall value proposition of our hard work.”
Digital Arts Media Network anticipates its primary program, Angels+, will drive increased valuations for the Company faster than any program management plans to offer over the next 24 months.
This initial share reduction of over 18.5M shares is directly related to the Company meeting its goal of having soft commitments from the recruited executive team beginning to formally materialize; helping to shape the management and board.
Ajene Watson concluded, “Our goal is to quickly ramp up the Angels+ Program and raise adequate capital to operate the Invest+ Program, which should result in an additional reduction of approximately 30 million shares by year end.”
Currently there is a little more than 2M shares in the trading float and approximately 105M shares outstanding of which, roughly 90% of the outstanding stock is restricted and held by AJENE WATSON, LLC.
ABOUT Digital Arts Media Network, Inc.
Digital Arts Media Network, Inc. (OTCMKTS:DATI) is the first company to utilize the Public Accelerator-Incubator (PAI) model, with the intent to follow the global success of accelerators and incubators around the world, adding niche opportunities to both the microcap and start-up communities. As a PAI, Digital Arts Media Network will develop and acquire innovations that solve problems through digital platforms and other electronic applications.
Digital Arts Media Network aligns with leading private accelerators and incubators to form unique partnerships. These partnerships enhance the vetting process and expedite traction. Further, Digital Arts Media Network partners with successful entrepreneurs, venture capitalists, and development teams to provide start-ups with general and functional mentorship from industry leaders.
Digital Arts Media Network offers all investors the ability to (i) diversify, (ii) maximize success, (iii) see money at work, and (iv) exit. For those persons invested directly in the PAI, there is an additional opportunity to effectively support start-up ventures through mentorship, and angel investors in start-up ventures receive additional benefit from various strategies which further hedge and mitigate risk.
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Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking.