Some insights
Just saw in the yahoo board that a user was in contact with John a few days ago. Its for sharing. Interesting things are going on: Dear all, I would like to share with you the answer from John to an e mail i sent about the gap between good news and stock price reaction, future dilution etc... Please read, it is promising: Hello Guillaume, Thank you for the message. I share the frustration on the current state of the small cap tech market. As you know, we are growing quickly in the sector and names like Acuity and IZEA have also suffered identical share price slides over the last 6-8months. The good news is the small capital market is beginning to rebound and DGTL is now trading at 1x sales vs. 5-7x sales from our competiors. We have hired a new capital markets consultant who is coordinating daily broker presentations with some of the strongest IAs in Canada. I have completed 10 broker presentations in the past 10 days and expect a good 25-30 presentations this month. That is a fantastic outlet to build visibility and excitement among brokers and their investors. We have also added a new Market Maker, Red Cloud and we expect them to start next week which will help with liquidity and daily volume. We are pursuing a low interest det facility for the $2M USD contemplated in the acquisition. We are currently negotiating with five of the big 6 six banks (CBIC, NB, BMO, TD and RBC) to do a senior credit facility with market terms of prime +1-2%. This would result in a ZERO dilution capitalization and would put DGTL in the driver seat for future acquisitions with a major big six bank partner to fund acquisition 3-6. All in all, we are executing well as a company, having grown Hashoff and adding new key customers like DraftKings, DoorDash, Beam Suntory, Veritone, and many others. With the launch of Hashoff 2.0 for TikTok and our partnership with Sopaceback to turn social content to commerce through Social Influencer Advertising, we expect organic revenue growth from Hashoff. The TotalSocial deal is a valuation of $1.7M in shares (or 0.5x revenue as they are approaching $4M CAD in revenue for the year), in restricted stock for a min of 1 year, and they come with Netflix, Metlife, Progressive Insurance and the NFL as key customers. Another fantastic value for DGTL shareholders and just the beginning for the company as we continue to acquire and grow high margin software companies. I hope this helps. Please share with your network and forward our sincere thanks for their support and enthusiasm as DGTL continues to grow. Best regards, John Belfontaine