SHAREHOLDERS UPDATE—JANUARY 26, 2022
Digital Brand Media & Marketing Group, Inc. (“The Company” and “DBMM”), wanted to provide shareholders with a forward-looking view as the 2022 calendar year begins and the first quarter of DBMM’s fiscal year has been filed in EDGAR. The Company’s intent continues to be to keep investors and shareholders apprised of real news and real facts.
Its operating brand, Digital Clarity (“DC”), has been ramping up activity and retooling its business model as the pandemic appears to be ebbing. The effect on the operating business clients was described in the last 10-K and 10-Q MD&A as many paused or closed down in an uncertain environment.
Tenacity and patience continued however, as DC’s Gross Revenues improved by 56%, albeit small dollar amount. The fact that the Company was validated as Pink Current during the first quarter of the 2022 fiscal year, left only the 15c2-11 clearance as instructed by OTC Markets.
New clients are being added as DC is capitalizing on the need for trusted, experienced, strategic, consulting advisory services. These brands have learned that in order to compete successfully post-pandemic, they require a significant digital footprint as the environment has changed and digital market share is essential.
Regarding opportunities for DC and its outlook, Reggie James, the Founder and Managing Director of DC and a Director of DBMM said: “As the Omicron variant starts to ease in both the US and Europe, it is clear that companies are in need of a clear focus, and often digital transformation, to recalibrate an exciting, though sometimes confusing, Marketing landscape.”
The advertising industry’s trade body, the IPA, has forecast advertising growth of 5.2% in 2022 which supports a return of confidence to the sector.
The digital platform continues to evolve as James further commented, “…with the rise of Web3, NFT’s as a brand enabler, along with the rapid growth of AI affecting marketing and business overall, DC’s industry experience and reach can address opportunities proactively.
We can diagnose solutions through broad Company transformation in which the digital market share keeps increasing and we have earned our seat at the table of decision makers, like Finance and HR as digital marketing impacts the total organization.” In a recent McKinsey study, 83% of global CEO’s surveyed say that marketing can be a major driver of growth.
Reinforcing the earlier business plan, DBMM intends to grow organically and by acquisition, a plan put in neutral by reaudits, litigation, delayed filings and awaiting a Final Order of the Dismissal by the SEC. Returning to normal business and normal trading is the Company’s first priority. The distractions are essentially over and just need to be finalized, to focus on the future.
The Company is also finalizing the labor-intensive task of submitting the 15c2-11 back-up material to the broker who will be sponsoring it through the FINRA application as required by the recent amendments to resume normal trading. The material will be released this week. The removal of the CE on OTC Trading is the first step. That is essential as the icon has been a real impediment to growth.
Capital infusion will follow with investors who share DBMM’s vision and want to participate in our journey. With their support, DBMM will grow geographically first to reach a certain revenue level and then seek 1-2 acquisitions to increase a) client base and revenues, b) skill sets of talent, c) relationships in place to leverage and d) global market share.
The long-term investors objective is to qualify for NASDAQ by a combination of events driven by growth and acquisition. The pace of growth will be aspirational and a function of capital flow. There will be milestones set and met, and as a fully-reporting company, the progress will be transparent.
DBMM looks forward to moving forward with those shared objectives, and then sharing the progress along the way with all its stakeholders.
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.