DigitalAMN Completes Additional Reduction of 10M Common Shares
NEW YORK, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Digital Asset Monetary Network, Inc. or DigitalAMN( OTCMKTS: DATI ), a Public Accelerator-Incubator (PAI), announced today that management has once again tightened its cap table with a further reduction of 10M common shares.
NEW YORK, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Digital Asset Monetary Network, Inc. or “DigitalAMN” (OTCMKTS: DATI), a Public Accelerator-Incubator (“PAI”), announced today that management has once again tightened its cap table with a further reduction of 10M common shares.
“Beginning back in 2017, we started a program to aggressively reduce the number of shares of DATI’s common stock,” stated Ajene Watson, CEO of DigitalAMN. “We have recently eliminated another 10 million shares – over 1/3rd of DigitalAMN’s Issued and Outstanding share count. Today, after two years of persistent focus, we have collectively eliminated over 100 million shares of common stock. A proud achievement for any company that is looking to strengthen shareholder confidence.”
In a recent ‘Coffee Talk’ announcement, Mr. Watson noted that management had “negotiated with the Company’s second largest stockholder – who represents just over 7% of our outstanding common shares – to cancel their entire block of two million (2,000,000) shares of common stock, in exchange for our preferred shares.” Mr. Watson also announced in that same Coffee Talk piece that, “the company I control as DATI’s largest stockholder, intends to cancel as much as six million (6,000,000) shares of its holding – also in exchange for the aforementioned preferred shares.” In actuality, Eight Million (8,000,000) Shares of common stock from DATI’s largest shareholder were cancelled – which represented roughly 30% of DATI’s outstanding common shares. Collectively, the two shareholders have executed agreements to cancel and exchange a total of Ten Million (10,000,000) Shares of DATI common stock.
Management believes that by aggressively seeking share reductions such as these, DigitalAMN will substantially limit the number of shares typically accessible to investors through various types of convertible instruments. This helps to position DigitalAMN and its investors for long-term financial growth, as the overall rate of dilution from legacy noteholders can be kept at a minimum.
Mr. Watson continued, “In maintaining a floor price of $0.35 for all basic stock issuances, we’ve successfully raised operating capital at per share values greater than the current stock price – much greater in some cases. When combining this floor conversion price with an aggressive share reduction, you’ll find that, historically, DigitalAMN’s common stock has seen a minimal rate of dilution, averaging less than 5% on an annual basis – the antithesis of typical microcap companies these days.”
Management does anticipate that DigitalAMN’s executive consultant and management team will commit to similar stock reductions as Mr. Watson and other shareholders have already done – positioning themselves for the long-term by exchanging common for preferred shares.
“One important item to note is, I believe that a tighter cap table only further reflects just how undervalued DigitalAMN is in relation to our equity portfolio holdings – an equation I do not believe will continue to go unnoticed. Further, we are striving to put our shareholders first. By cancelling as many common shares as possible, we believe that this will have a more positive impact for our shareholders in the future,” concluded Watson.
ABOUT Digital Asset Monetary Network, Inc.
Digital Asset Monetary Network, Inc. (OTCMKTS: DATI) is the first company to utilize the Public Accelerator-Incubator (PAI) model, with the intent to follow the global success of accelerators and incubators around the world, adding niche opportunities to both the microcap and startup communities. As a PAI, Digital Asset Monetary Network will develop and acquire innovations that solve problems through digital platforms and other electronic applications.
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