DigitalAMN’s 2nd Largest Stockholder Will Exchange Common Shares for Preferred

Since taking on the role of DigitalAMN CEO, DATI’s marketplace has been on the top of my mind for quite some time now. 

Currently, our equity portfolio is valued higher than our entire market cap – which is based solely on just one of our holdings. This could indicate a disconnect between our current market value and our overall value proposition. We believe that with DATI’s very tight cap table, it’s possible to argue that the market value of DATI will have to ultimately correct itself over time; particularly as we plan to continue adding to our equity portfolio with investments into companies like Project JAM.

Against the odds, to date, we have (a) eliminated [canceled] over 100M common shares from the cap table, and (b) established a floor price of $0.35 for any and all basic stock issuances (i.e. compensation, convertible debt, etc.).  

This combination has aggressively staved off dilution; keeping the rate of dilution to less than 5% annually – which is the absolute antithesis of what usually happens in the microcap market space.

To further this, we recently negotiated with the Company’s second largest stockholder – who represents just over 7% of our outstanding common shares – to cancel their entire block of two million (2,000,000) shares of common stock, in exchange for our recently created preferred shares. This is thrilling (well, to me at least!). Mostly because it’s a powerful step that we’ve taken to further strengthen our cap table and engender continued overall stockholder confidence. This shareholder has demonstrated a good show of faith and is effectively taking a back seat to the other common stockholders by reducing their own liquidity.

We anticipate completing this stock cancelation and exchange for preferred shares within the upcoming days. I am also taking this opportunity to announce that today, the company I control as DATI’s largest stockholder, intends to cancel as much as six million (6,000,000) shares of its holding – also in exchange for the aforementioned preferred shares. I expect additional transactions, similar to these, to be completed in the near future by our executive consulting and management team. 

For some, this may not appear to be a big deal, but when it comes to raising money (especially smart money), it’s a lot like a harvest’s yield. The resulting bounty is a direct result of its environment – beginning with the soil. A cap table is the soil and we are looking to make hay while the sun shines.

DATI is committed to creating stockholder value. With this reduction of the total number of common shares, we anticipate that the empirical value of each common share will be higher than where we are today.

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