NEW YORK, NY and LOS ANGELES, CA and LONDON, UNITED KINGDOM--(Marketwired - Apr 1, 2016) - Digital Brand Media & Marketing Group, Inc. (OTC PINK: DBMM) finished the 2016 first quarter in a very positive position. The business is performing as projected and is very exciting to watch roll out. The client base continues to grow with well-known brands in the US and Europe with the growth quarter-to-quarter embedded as part of DBMM's ongoing strategy.
Reggie James, Co-Chief Operating Officer and Senior Vice-President Marketing & Communications commented: "Digital Clarity's reputation as a serious digital brand strategist continues to grow with new opportunities in the luxury and real estate markets alongside strong activity in retail and ecommerce. The high profile choice of Digital Clarity further attests to its standing in the industry. The evolution is very stark. If a company is a premium brand or content creator, there are increasing ways to monetize that. Part of this strategy has been to go deeper (through analytics) and then go broader. And then connect it all through digital marketing. The worlds of live events, fashion, sports and entertainment, all come together. Digital Clarity is really good at sophisticated representation which can be a competitive advantage for a brand and significantly improve its ROI. Disruption through distribution of the total integrated product is the name of the 21st century game. DBMM through its brand, Digital Clarity, gets it and is very much in the game."
James added: "As stated in earlier PR's, the growth of DBMM requires long-term capital to match its talent and infrastructure requirements." LINK
What does this mean? In order to introduce the new funding paradigm, the Company continues to eliminate previous short-term debt incurred through contractual debt-to-equity agreements. Specifically, new funding will be on a mezzanine model serviced through cash flow. This will be an evergreen model to flow growth capital into DBMM. To understand this financial strategy, the Company urges the public to familiarize themselves with the details of the last Press Release issued on February 11, 2016 which summarized the history of the public company in the marketplace and available through the link above. There has been an ongoing disconnect between increasing positive operating results and the market. The Company should be able to easily absorb the increased number of shares resulting from debt to equity conversion as the market cap is a fraction of one quarter's revenues. The fundamentals of DBMM have been increasing over the last 18-24 months. Nevertheless, relentless trading on every uptick has never allowed the Company any traction. This has been a negative for some time. DBMM, however, after significant debt has been eliminated, new funding with no equity component implemented, along with IR awareness expanding to Europe or Asia, will not be at the mercy of trading activity.
To restate from the last PR: "The business is on track, but there has been a lack of acknowledgement by the market, and that is a hurdle. This is why the Company is determined to include all events and actions in the 10-K filing, irrespective of timelines, coincident with the 10-K in order to capture all the positive material events through the 2Q2016 timeframe.
"The decision is particularly important this year because of the revenue increase coupled with the elimination of certain debt and associated derivative liability and interest."
That being the case, DBMM is adamant in having an audited document which eliminates as much debt, derivative liability and interest as possible, irrespective of future timeframe beyond 2015 fiscal year. The 10-K, albeit delayed, will provide that documentation. In the interim, DBMM has raised its Authorized Shares to 2 billion which is 20% of the pre-reverse authorized shares in order to maintain the prudent reserve required.
2016 will be a very significant year for DBMM.
About Digital Brand Media & Marketing Group, Inc. (DBMM):
DBMM Group crafts, designs and executes digital marketing strategies across multiple ad platforms and social media networks for a broad array of clients to help each of them establish a uniform brand identity across the digital universe. The product offering is a unique value proposition of intelligent analytics provided by an experienced digital marketing and technology team.
Safe Harbor Provisions:
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in DBMM's reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.