- November 18, 2017
- Company Update
To reiterate DBMM’s Shareholders Update of October 5, 2017, “DBMM appreciates the support it has received from many of its shareholders and its clients during this challenging time.”
DBMM, albeit disappointed in the Initial Decision (ID), intends to press on vigorously with the legal process available to them. DBMM will reply to the Initial Decision as the Company Management will put forth material facts and documentation which must be corrected, and to provide evidence of subsequent events which reinforce DBMM’s position as stated at the August 9th hearing and in its Post-Hearing Briefs.
There are Post-Hearing Developments of material facts which are now documented which were not available at the hearing, nor at the time the Post-Hearing Briefs were required to be submitted. The Specifics will be provided as supplementary evidence of the Company’s statements at the Hearing and are referenced in the ID.
It also continues to be prudent to ignore the pop-up non-shareholders who surface to twist the facts and prognosticate future events which are intended to fear monger. Timing is taken out of context with dates and outcomes which are just flat out erroneous. These are facts:
-DBMM is an extremely well-positioned leader in the digital marketing sector
-DBMM’s operating business has grown quarter to quarter and has no issues. The hurdles encountered have always been in the public company from situations out of its control, e.g. re-audit mandate from SEC in 2013 for Auditor de-certification which coincidently began litigation from Asher Enterprises because it couldn’t convert its loan to equity because DBMM had to re-audit. A perfect storm
-DBMM maintains it protected its shareholders from damage which would have been wrought by Asher relentless legal action results if it didn’t fight back. That is evidenced by the sanctions on Asher by the SEC and FINRA for Section 5 violations in similar situations and documented.
-DBMM was delinquent in its SEC filing requirements from 2015-2017.
-DBMM intends to engage in the full due process it is entitled to in the legal system, step by step through its SEC Attorney, Marshal Shichtman, Esq..
-DBMM will remain trading on the Grey Sheets during the full, continuing legal process.
-DBMM’s shareholders of record remain its shareholders. Nothing has changed, nor will it change.
-DBMM is fully and completely owned by its shareholders. Asher owns no part of DBMM.
-DBMM is preparing its requisite financial reports to file a Super 10-K for 2015-2016-2017 and will file coincidently, through its professional advisors. That includes its preparation of the “Audit Support Packages” (ID) and the Audit following, by the named professional advisors.
-DBMM has the resources to cure the delinquency and fully intends to file and return to normal trading. The Company will follow whatever turn the process dictates.
From an earlier Update representing the worst case scenario, “Even those companies who have gone dark, can file the requisite Form 10 and or 15c-211 to register and resume trading. DBMM continues to believe revocation is draconian given the circumstances, however, revocation is only a death knoll when there is no business foundation. Therefore:
1) Those who are saying investment is lost with a revocation are not telling the truth if the business is ongoing. Purchase and sale of shares in the re-register scenario can only be done privately, until the re-registration in complete. Then normal trading returns. That is the path.
2) Those who are saying the SEC would not approve a re-registration are wrong. The statement is patently false. If the SEC is stating a path in its Initial Post-Hearing Brief, it is an oxymoron to suggest the corporate action would not be approved.
For the perennial nattering nabobs of negativism, harken back to the morning of May 16th, prior to DBMM’s suspension, its market cap, very depressed in the Company’s mindset, was $3,500,000. That fact was with delayed filings, a protracted litigation with a FINRA-named “bad actor.” For a blinding statement of the obvious, once filings have been documented in EDGAR for 2015-2016-2017, the Company’s leadership in digital marketing will be clear.
As we have stated before, revenues up, debt down in a labor intensive consultancy, with differentiating leadership in digital marketing. DBMM has evidenced support by its client base that its brand, not only increases ROI, it provides transformational strategic direction to gain a competitive advantage to a wide variety of industries.
DBMM Management has referred to new, consequential clients in the pipeline, mezzanine, non-equity financing from a global wealth management company, and the elimination of hurdles plaguing DBMM—will provide DBMM with a straight-line to rapid growth. Growth is function of capital. It is as simple as that.
To summarize, DBMM maintains its mitigating circumstances defense for its delayed filings. DBMM has been transparent and that was confirmed in the ID. DBMM was late with its filings, however, the Company had never been late in filing previously before it was required to re-audit. Asher sued because it could not convert because a re-audit was in process. Asher knew a re-audit was taking place. DBMM protected shareholders during this protracted period. Asher over-reached and issued an inaccurate and misleading PR and two weeks later DBMM’s trading was suspended. Asher has damaged DBMM while under major sanctions from the SEC and FINRA. This matter now involves Section 5 violations and belongs in a Federal Court. Civil courts cannot deal with Section 5.
Please continue to be patient as the process continues. Your investment is sound. The Management believes in the Company’s mission and its stalwart shareholders. We expect neither to be disappointed.
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.