SHAREHOLDER’S UPDATE —APRIL 12, 2022
Digital Brand Media & Marketing Group, Inc’s (the “Company” and “DBMM”) filed its 2Q2022 10-Q today, two days early, following its practice adhered to since it cured its delayed filings in July, 2018. The Company has filed 14 consecutive filings since then, 9 since the Dismissal. In that context, DBMM has more than met the last two, third and fourth Gateway factors cited by Judge Foelak which “…ensure future compliance.”
The 2Q2022 Subsequent Events continued to cite the ongoing debt renegotiation, one lender at a time. The full reduction in multiple categories will be included in the 3Q2022 Financial Statements as the action was executed on March 17, 2022. The Settlement totally extinguished the debt on two debentures from 2014 totalling $85,000 for a one-time issuance of 30million common shares, which is far less than the discounted terms of the debentures. Interest has been cancelled and derivative liabilities reduced further. In 2Q2022 derivative liabilities were reduced from $518,567 to $222,363. Paid in capital will also be increased in 3Q.
Year-on-year, the Net Loss continues to be reduced significantly. All good indicators.
Incremental progress is positive while the Company is also focused on removing the CE so the US retail market can return to normal trading.
All this reinforces the commercial outlook. The operating business , Digital Clarity (DC) continues to carefully navigate the still uncertain waters of the digital industry sector as they have been impacted by world events in Eastern Europe , and the strain and knock on effect of global supply chains and energy markets on our existing and potential clients.
Speaking about the business environment, Reggie James, the Founder and Managing Director of DC and the Chief Operating Director of DBMM said, “The Company’s consulting services for business transformation in the digital sector remains in demand with commitments made for the Fall-2022. More recently we have embarked on an early-stage project with an ambitious Blockchain company that is looking to market NFT’s to a wider audience, leveraging the digital footprint required to educate the consumer and generate increased demand.
James continued, “ We continue to have new irons in the fire, and build out our business model of capitalizing on the need for trusted, experienced, strategic, consulting advisory services.”
The Company looks forward to the removal of the CE and the return to normal business and normal trading. Then with a combination of organic growth and seeking acquisition targets, the Company can quality for NASDAQ, guided by our long-term investors objectives and joint initiatives.
To reiterate, the Company will move forward without distractions after the icon is removed, accelerating the pace, while sharing all positive events, milestones and progress along the way with all stakeholders.
Lastly, though we hoped it would not be necessary at this point, we encourage all shareholders to ignore the incessant misinformation as white noise. The Company is pleased with its progress and looks forward to a much faster pace when the CE icon is removed.
Happy Holidays to all DBMM shareholders.
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.