Hello everyone, I hope everyone has a wonderful Thanksgiving with their families and love ones.
Its been a few months since my last blog on Innovativ Media Group, (INMG) but as we approach the worldwide launch of the first Cannabis Network/Channel on Nov. 28th, 2017, I feel compelled and extremely excited blogging on latest updates from INMG and will give some of my personal opinions and due diligence as well. I will present factual, indisputable information that the message boards trolls never seem to accept with their hidden agendas. They rather cause uneasiness amongst current long shareholders with their intentional misinformation that can be debunked right in the company filings. Obviously, they do this to swing or flip the stock by instilling fear amongst the message boards. I have learned from my experience in 20 years of researching and playing penny stocks, when the fear level noise increases on a credible and transparent company doing things the right way with a reputable CEO and has numerous upcoming catalysts/news, positive past stock performance, but technically stuck in a channeling range on a chart well off the lows – you BUY the fear in my opinion.
First of all lets take a look at some critical deals that have transpired over the last few months and share count:
First of all the most recent outstanding shares and float numbers have increased mainly due to a few deals Tom Coleman, CEO, negotiated for content and the recent conversion of 10 Preferred B Shares. It’s very important to remember the Float defines the shares that are openly traded in the market and the Outstanding Shares are issued shares, but NOT necessarily free trading due to restrictions put on the shares. *All the deals Tom has put together so far are for RESTRICTED SHARES for 1 year and subject to rule 144.
Lets look at the deals Tom has negotiated for Restricted Shares: (As Tom is building out Cannanet.tv he has issued shares to the Outstanding Shares increasing them from around 150M to 280M. Now what is IMPORTANT to know here is that these shares cannot hit the market till 1 year after the issue date of the shares, so for these 3 deals posted below the earliest is around July 2018- November 2018. )
1) Night Flight Minority Ownership
2) Local Cannabis Directory Yelp Like Website
3) Investment from Private equity source for $52,000 in the form of a 6% Note, which is convertible into restricted shares of the Company’s common stock at a fixed conversion price of $.0261 per share. The Company has no other debt on its balance sheet and has no obligation to register any of the shares.
INMG Security Details Share Structure
Market Value1 $2,958,109 a/o Nov 20, 2017
Authorized Shares 500,000,000 a/o Jun 28, 2017
Outstanding Shares 281,724,670 a/o Nov 10, 2017
Float 172,611,60 a/o Nov 10, 2017
So to date, the float is 172M shares with an outstanding share count of 281M. This gives the current market cap of INMG under $3M. If you compare these numbers to many other companies in the cannabis sector you will see that INMG is proportionally way undervalued when you look at the parameters of float, outstanding shares, current debt and liabilities, shareholder equity, and revenue. Revenue and profitability are a small factors on the OTC market, for most if not all these companies are in the growth or developmental stage. Infact, many companies are so burden with debt and liabilities, all they do is flood the market with common shares producing floats and outstanding shares to levels that hit over a billion shares. Many of these companies have Market Caps in the $50M-$100M+ range, and INMG has a Market Cap of around $3M. Do you now see why I’m excited about being a shareholder now?
INMG from the latest Quarterly: (Q3)
Total Assets : $2,700,000
Total Current Liabilities: $90,000
Q3 Revenue: $58,000
Total Operating Expenses: $70,000
Net Loss for the Q3 -$12,000
If you analyze these numbers vs other companies it the cannabis space or any other sector space for that matter, they are very positive and good numbers. INMG only has $90,000 debt on the books. I challenge you to find a cannabis stock that has less than that. INMG only had $70,000 in operating expenses. I challenge you to find a cannabis stock that has less than that. INMG was almost profitable again, but was only had a net loss of $12,000 for the quarter. (*INMG streamlined operations does not take a lot of cash flow and can be manageable and profitable very quickly.) I challenge you to find a cannabis stock that has less than that. INMG produced $58,000 in revenue (*this is prior to the launch of Cannanet.tv-through Sept. 2017).
Now, go look at some quarterly reports from other Cannabis stocks and look at their share structures, debt, liabilities, operating expenses, etc. I’m telling each and every one of you right now, if you analyze comparisons in this industry, INMG will be at or near the top of the list in every parameter making it an attractive investable grade stock if there ever was one on the OTC. NONE OR VERY FEW have a lower share counts, lower operating expenses, lower debt, and approaching and being profitable with a sustainable cash flow to support and grow the company. Like I stated, many have debt and liabilities in the $millions, with large operating expenses, and produce little or no revenue. Some of these stocks pay for 3rd party promotions to create awareness and volume to dump shares. Sometimes, but rarely, this may increase the price of the stock only to have in crash down afterwards when the dilution and promoter shares hit the market and the buzz goes away. INMG has not been involved in any of these types of hype or promotion, because the CEO does need to sell shares in the open market. Yes, it could help awareness of the company in a short term burst, but the way Tom is building CannaNet.tv as a true media network with out irresponsible hype, and awareness will come on its own by being the only investable stock you can buy if you want to be a part of history in the launch forward developments of CannaNet.tv.
Now, lets take a look this very important press release that came out in October. Many traders don’t understand the importance of it, but without question this press release was the most critical and important deal Tom Coleman put together to date. Why you ask? If you look at the Preferred B shares conversion rate (1: 2.5M shares), and the past conversion of handful of these shares by the original investor, you can see the overwhelming dilutive force that could have come upon common shareholders, including Tom Coleman, the largest common shareholder 92M shares. Well, I’m happy and relieved to report Tom redeemed and extinguished ALL THE PREFERRED B SHARES CLASS with a non-toxic Promissory Note. This protects all common shareholders moving forward here and makes INMG a very attractive investment now. It also pulled the rug out from the market makers that have been shorting the stock and relying on this mass dilution to hit the market at a future date to assist them in covering their short positions. Tom is now in full control of the company’s destiny. He does not have to contend with having to deal with an original investor’s series ownership of B Preferred Class that is now eliminated from the picture, which in my opinion crucial for Tom to implement his strategic plans. So in summary, common shareholders need to realize how important and strategically imperative this was for the company moving forward. Additionally, Tom made this move to protect the prospects of incremental growth for CannaNet.Tv and other TBA businesses under INMG. The fact that Tom owns 92M shares clears a direct path now for outside investors to come in without the fear of being heavily diluted and sets the stage for any market up listing, mergers, etc.
Additionally, Tom secured and investment for $52,000 in Note that is convertible into restricted shares at a FIXED PRICE of .0261 at the earliest in October 2018. So, there are no concerns of these shares hitting the market if the note holder wished to do so till then. Tom also included the PR, with this statement, “The Company has no other debt on its balance sheet and has no obligation to register any of the shares.”
Innovativ Media (INMG) Redeems Series B Preferred Shares
Oct 11, 2017
LOS ANGELES, CA–(Marketwired – Oct 11, 2017) – Innovativ Media Group, Inc. (OTC PINK: INMG) (“Company”), a multi-media content producer and distributor, today announced that it has redeemed all of the Series B Preferred Stock held by an original Company investor in exchange for a Promissory Note for $110,000. The Company also reported that it had secured an investment from a private equity source for $52,000 in the form of a 6% Note, which is convertible into restricted shares of the Company’s common stock at a fixed conversion price of $.0261 per share. The Company has no other debt on its balance sheet and has no obligation to register any of the shares.
Tom Coleman, CEO of Innovativ Media said: “The Company decided it was an appropriate time to exercise the option it had under a lock-up agreement to redeem the shares and remove any uncertainty regarding long term dilution.
We are committed to scaling CannaNet.TV http://www.cannanet.tv/ rapidly and the funds provided by the Note will help us accelerate growth and capitalize on some developing opportunities.”
The CannaNet.TV platform http://www.cannanet.tv/ is a new online, ad supported channel which will stream curated and original entertainment, informational and educational content related to the Cannabis culture and industry that will launch in the 4th Quarter.
Lets look at 2 other recent Press Releases:
Innovativ Media (INMG) Announces Launch Date for CannaNet.TV
LOS ANGELES, CA–(Marketwired – Oct 26, 2017) – Innovativ Media Group, Inc. (OTC PINK: INMG) (“Company”), a multi-media content producer and distributor, today announced that its online, ad supported channel and platform CannaNet.TV http://www.cannanet.tv/ will officially launch on November 28, 2017.
The Company’s ‘All Things Cannabis’ channel will initially go live with a full complement of entertainment content including films, videos and documentaries, the CannaNet Radio Network’s wide variety of live radio streams in multiple formats and styles, ‘World Wide Weed,’ a broad mix of news, information and tutorial content related to the cannabis, hemp and CBD communities, and the ‘Smokin’ Lounge,’ a community in which registered members can connect and engage with other industry enthusiasts. Features for publishers and advertisers will also be available at launch including CannaNet.TV’s customized interactive advertising platform.
Tom Coleman, CEO of Innovativ Media, said: “We have been working diligently with our partners to build the CannaNet.TV platform and are continuing to actively pursue content but we felt it was time to start making the channel available to worldwide audiences. We are also engaging with prospective sponsors and advertisers and we anticipate announcing a number of exciting developments in the near term including the production of CannaNet.TV’s first original series.”
Innovativ Media (INMG) Acquires localcannabisdispensary.com for CannaNet.TV
LOS ANGELES, CA–(Marketwired – Nov 13, 2017) – Innovativ Media Group, Inc. (OTC PINK: INMG) (“Company”), a multi-media content producer and distributor, today announced that it has acquired http://localcannabisdispensary.com, an ad supported and subscription based directory and search engine for over 500 cannabis dispensaries and stores, which will be exclusively available on CannaNet.TV http://www.cannanet.tv/ scheduled to launch on November 28, 2017.
The Company acquired the business from Total Sports Media, Inc. in exchange for the issuance of restricted shares of the Company’s common stock.
Tom Coleman, CEO of Innovativ Media, said: “This is a significant and logical purchase for us and it represents the kind of diverse content we intend to be making available on the CannaNet.TV platform. Our primary objective is to expose under-served brands and advertisers within the cannabis community to our worldwide audience of enthusiasts. We believe that http://www.localcannabisdispensary.com has the potential to build a ‘Yelp’ like community in the sector.”
What we are seeing is Cannanet.tv building its log of content, acquisitions and partner ships to support viewership and its ad-supported platform. The key with these deals and acquisitions is to build a Network that develops a viewership within the cannabis community and industry. This space is virgin at the moment and for the first Network to come in and stake its worldwide claim and gain loyal viewership is priceless. This sector is growing in leaps and bounds and is projected to be a $100 BILLION DOLLAR SECTOR by 2029. https://www.newcannabisventures.com/ackrell-capital-forecasts-100-billion-cannabis-market-in-2029/
These are just a few of the many acquisitions and partnerships to date and I expect to see a lot more during the growth stage of Cannanet.tv after the launch. Tom already has a good deal of announced content in place with Night Flight content, and “Night Flight High” specialized content programing, MJAC Cannabis Company Directory & Industry Video Streams, IHUB partnership in the Cannabis Sector, acquisition of http://localcannabisdispensary.com which is a very nice and actually better then WeedMaps.com if you look at the content it has, also Movies, Radio, News, etc. If you look a this link on ABOUT CannaNet.tv, it hints on several areas of content Tom is focusing on and the Revenue Stream generators: ( 1-Ad-Supportive Plaform, 2-Live Stream Events of Industry Trade Shows to Entertainment Events Like Concerts, Shows, Comedy, etc 3- Night Flight Minority Ownership which I believe Tom will probably buy them out all together, 4- Lux Digital Library Assets 5- Too be announced in acquisitions/partnerships).
CannaNet.TV is an online, ad-supported channel that streams curated and original entertainment, informational and educational content related to the Cannabis community. We program a broad mix of live action and animated movies, series, specials, music films and videos, news programs, documentaries and tutorials. Check out all the ways you can be informed and entertained below:
Video – To keep our audience satisfied and entertained, we offer a full suite of unlimited FREE on-demand video’s. Whether you’re interested in celebrity interviews, how-to’s or documentaries, we have it all. If you’re looking for a more laid back vibe, check out our wide selection of full-length feature films ranging from horror, cult, martial arts and music as well as a customized channel of “Night Flight” programming plus original and archived TV and Web series.
Radio – We offer a live radio stream in all formats and styles catering to every musical taste 24/7. Choose a genre of music or one of our many original or curated podcasts, and sit back and relax.
WorldWideWeed – There’s a lot of information related to the Cannabis, Hemp and CBD community spread out all over the web these days and we stream topical and archival curated news and informational programming most relevant to you and the industry.
Live Events – Check out our video and/or audio live-stream of events happening right now in the Cannabis, Hemp and CBD community. These events range from trade shows and conferences as well as entertainment events including concerts, comedy shows, specials and rallies.
Smoking Lounge – Is a Forum and Community where you can connect with other like-minded users to share profiles and ideas, blog, chat and connect.
Advertising Platform – We offer advertisers fully customized and interactive software which allows product sponsors to target and reach an audience of active and engaged prospective consumers with video, audio and display advertising at excellent rate based on state of the art analytics and without interference or censorship.
The bottom line is Cannanet.tv is being built right before our very eyes and the first initial version of it will be launched LIVE on November 28th, 2017. It will be the first all encompassing Cannabis Network to launch worldwide, so this is historical event in nature. Could CannaNet.Tv be the Cannabis Channel for Industry/Sector & Culture? Can it be the MTV for Music/Vides, or ESPN for Sports, or HGTV for Homes Improvement? In my opinion, if Tom does this the right way and strategically develops CannaNet.tv with key content providers, branding endorsements and relationships with celebrities, key partnerships and acquisition, I believe it will be. To date, the CEO Tom Coleman has been equal to the task and is 100% committed to CannaNet.tv with his quiet methodical development of the Network. It won’t be long now till CannaNet.tv is LIVE. Once officially launched and running they will be able to attract the hundreds of cannabis related companies to advertise their products or services on their custom ad platform that will range from banner ads to full blow video infomercials. There will be no better place to connect with a viewership base that meets its demands of these companies selling product/services than on Cannanet.Tv. Finally, what better place would there be to have exclusive LIVE Stream Events on Cannanet.tv pertaining to the Culture, Industry, etc. Best part about it is there are NO restrictions or federal legislation that can damper CannaNet.tv, because it is a media source and does not have direct connection to growing, cultivating, or selling any form of cannabis-Meaning it does not touch the plant.
So in closing, this is just the beginning of exciting times moving forward for INMG’s CannaNet.tv. They are developing a brand and a media outlet for the Cannabis space, community and industry to thrive in. They are pioneering a Network in a market that is projected to be over $100 Billion Dollars by experts in the not so distant future. Their social media outlets are growing rapidly and I expect them to be ramping up quickly to fuel the awareness and viewership of Cannanet.tv. I expect a lot more news and updates confirming new partnerships/deals/acquisitions on many levels to be announced into the launch and after. The time is right for Cannanet.tv to launch worldwide, and we are only days away now.
Disclaimer: This blog is based on factual links I provided and opinions of mine. Always do your own research and due diligence before buying or selling a stock.