- March 18, 2020
- Posted by: Ajene Watson
- Category: Coffee Talk
On October 16th, 2019, we announced that DigitalAMN completed a reduction of ten million common shares from the cap table. Today, DigitalAMN is nearing completion of an additional reduction of roughly two million common shares.
Recent negotiations with DigitalAMN’s executive contractors to cancel their combined holdings of common stock in exchange for DAMN Series BB Preferred Shares, will allow DigitalAMN to shave off an additional 10% from the outstanding share count. Additional reductions in common stock does more than just affect optics, it is a show of confidence by our executive contractors and shareholders, that our corporate mission is achievable and that the value isn’t in today… but rather, in tomorrow.
As the executive of a microcap company, one subject matter often at the top of my mind (as previously mentioned) – is DigitalAMN’s marketplace. As you may know, back in the 4th QT of 2019, DigitalAMN successfully negotiated with DigitalAMN’s second largest stockholder to cancel their entire block of two million (2,000,000) shares of common stock. As, DigitalAMN’s CEO, I also reduced my position by eight million (8,000,000) shares at that time.
These share reductions are made to put our shareholders first by positively impacting the intrinsic value of each common share. All-in-all, we’ve eliminated [canceled] over 100M common shares from the cap table. We worked diligently to stave off dilution and have kept the rate at less than 5% annually. Sadly, it appears that the estimated value of our equity portfolio may be greater than our entire market cap. However, we are very confident that one day it will *click* with the marketplace, and the disparity between our current market capitalization and our overall long term value proposition would finally close the gap and find alignment.
In the meantime, we look to continue curating a cap table that’s attractive and inviting to investors looking to facilitate the 2nd phase of our capital requirements. DigitalAMN is committed to building shareholder confidence and value.