DBMM UPDATE: MAY 26, 2017
Over the last few weeks, Digital Brand Media & Marketing Group, Inc. (DBMM) has suffered at the hands of serious mis-information and deliberate attempts to create chaos. The most recent was the SEC temporary suspension on May 16th, which followed an inaccurate and unauthorized Press Release on May 3rd by an adversary in a continuing lawsuit at the time.
This update is to state that the Company has emphatically responded to the SEC regarding the suspension, in defense of its actions as requested by the Commission. The process is discussed in the SEC Publication on Trading Suspensions provided by the Office of Investor Education and Advocacy. https://www.sec.gov/investor/alerts/tradingsuspensions.pdf
DBMM will collaborate with the SEC and FINRA, as required. As a transparent 15-d Company, subject to voluntary filing, DBMM elected to be fully reporting by choice. Had we not intended to bring our filings current, we would have filed a Form 15. In summary, there are mitigating circumstances evidenced in this situation which are the basis for DBMM’s response to the SEC.
As indicated in DBMM’s first statement on May 4, 2017, DBMM’s objective in delaying its audited financials was to eliminate certain aged debt and associated derivative liabilities and thereby attract mezzanine financing. That action was in the best interests of the shareholders in that the use of toxic debt results in egregious rates and a death spiral. At the time of the acquisition of the Company’s brand, there was a major financial recession and there was virtually no funding available other than a plethora of toxic lenders. All of the reduction intended has taken place and will be documented in the actual filings as they are rolled out.
Be assured, DBMM is not going away. The Company is proudly a leader in one of the most attractive and sought after market sectors in the world, that of the internet and digital marketing services that allow businesses to fully integrate and succeed in the online economy. The Company has worked very hard to position its brand, to be the digital strategic consultancy of choice. DBMM is a 21st century company providing a highly specialized advisory service to clients, earning a seat at the table with the decision-makers going forward.
The suspension is certainly a setback in real time, but changes absolutely nothing about the fundamentals of DBMM as a dynamic business with tremendous potential. DBMM has always been an undervalued business in the marketplace, while the valuation based on industry metrics as a multiple of revenues, client growth and diminishing debt provides a much higher value to shareholders. Shareholders own DBMM. The morning of May 3rd the marketcap as stated on the OTC Trading Platform was $3.5million, so the company was heading in the right direction—finally. The two negative events which followed, exacerbated by much incorrect speculation, has increased the Management’s tenacity to double down to remedy the current situation and move ahead positively.
As such, it is important that all DBMM shareholders listen and seeks facts, not armchair speculation laced with ongoing false information, often malicious and willfully causing damage. This has been the case for some time as oftentimes these individuals are self-avowed non-shareholders and moreover people who have never been shareholders. We leave it to the shareholders to investigate the past and the present interventions of these people to determine the motivation and the results “for whom?”
DBMM will prevail–stay the course–we will continue to update along the way.
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.