Hello everyone! Hope everyone is enjoying their summer. I just wanted to take a few minutes today to update one of my favorite “investment type” stocks on the OTC in Innovativ Media Group (INMG). I first would like to briefly discuss/recap the last 6-12 months (which can also be read on my past blogs) but more importantly review a press release that came out earlier in the week. This press release changes the internal dynamics of INMG INNOVATIV MEDIA-by for the first time adding board of director positions, up-listing to OTCQB, and major acquisitions.
As we all know, INMG has had a very uneventful and 2018 in terms of price appreciation, in fact the stock is well off its highs of around .05 back in late 2017. The stock has settled into what I would call a low volume trading channel over the last 6 months or so between .006 to .008 for the most part. The main reason the stock has underperformed is a multi-faceted answer on the surface, but if you OTC market dynamics the answer is quite clear. OTC market dynamics for the most part or those with short sighted trading habits with the inability to show patience and progress to hold the stock. That is exactly what has happened to INMG as many stockholder have sold out in low volume at prices that to me and many are pure insanity. Why do they do this? They don’t want to wait around for INMG to and decide to chase a typical pump and dump on some other OTC stock only to loose more of their money. This happens to many traders and is a lesson they need to learn in having some patience, especially in a stock that is NOT diluting shares, growing their revenues, increasing shareholder value, and has one of the lowest floats of any cannabis sector stocks that I know of.
Quick look at INMG Share Structure: (Updated 7.18.2018)
Market Cap 2,217,107 07/18/18
Authorized Shares 500,000,000 07/18/2018
Outstanding Shares 291,724,670 07/18/2018
Float 172,611,602 07/18/2018
If you go back and look at my past blogs, INMG share structure has not changed since last October when the cancel all the remain Preferred B shares for a long term Note that was recently extended in a filing to September of 2019. It should be noted, that the price per share of INMG his its all time high of just under .05 during the last of the preferred B shares being diluted. But as we all know, the CEO made a decision to extinguish them as per filing and press release back in late October.
So why has the price gone down since then? Its surely not because of dilution which is THE NUMBER #1 reason why stocks on the OTC go down. It’s not because of the sector or their growing businesses because they are in the right place at the right time and have bright futures in the burgeoning cannabis sector arena. INMG stock price has come down mainly as stated above coupled with the CEO’s lack of communication with shareholders. Tom is not your typical pumping OTC CEO. In fact, he does quite the opposite and seems to only put out material event type news. This is leads me into my main focus today in the material press release yesterday and how important it was for INMG and its shareholders. Here it is below.
INNOVATIV MEDIA (INMG) ACQUIRES DEMAND BRANDS-Press Release | 07/17/2018
COMPANY RETAINS AUDITING FIRM AND PLANS TO UP LIST
LOS ANGELES, CA. , July 17, 2018 (GLOBE NEWSWIRE) — Innovativ Media Group, Inc. (OTC PINK:INMG) (“Company”) today announced that it has acquired 100% of the outstanding shares and all of the assets and joint venture agreements of Demand Brands, Inc. (“Demand”) http://www.demandbrandsinc.com. Demand is a collection of leading businesses and brands operating in the Health, Wellness, Cannabis Edibles, Hemp and CBD sectors which is managed by industry veterans Bruce Hannan and Guy Peckham.
The Company is acquiring Demand and its assets in an all restricted preferred stock transaction that will result in no material near term dilution to the Company. The parties have signed definitive, binding agreements and the deal is expected to close within 30 days. Bruce Hannan and Guy Peckham will be joining the Company’s Board of Directors, non-core assets will be sold and, upon closing, the Company will have redeemed and paid all material debt. The Company will be retaining Frucci & Associates II PLLC as its Auditors and expects to apply to up list to the OTCQB or an equivalent exchange.
Tom Coleman, CEO of Innovativ Media said: “We believe the acquisition of Demand Brands will substantially enhance the Company’s P&L and create significant near and long term shareholder value. Bruce and Guy have long and successful track records with both public and private businesses and in developing innovative brands and exceptional products”.
Bruce Hannan, CEO of Demand added: “Vending into Innovativ Media Group will give Demand access to new capital markets and currency to target acquisitions which will facilitate developing our assets and scaling operations more rapidly”.
“Our industry is growing and consolidating at a fast clip and this transaction will give us an opportunity to target some excellent operating businesses and add to our portfolio of companies. I am looking forward to working with Bruce and building on our prior experience at Premium Brands Holdings (PBH-T)” said Demand President Guy Peckham
About Innovativ Media Group, Inc.
Innovativ Media Group (Innovativ) is a developer, producer and distributor of digital entertainment and other multi-media content. It is a principle partner in CannaNet.TV, which operates LocalCannabisDispensary.Com and Kush Processing. http://innovativmedia.com
About Demand Brands
Demand Brands, Inc. is associated with an array businesses and brands consumers have come to know and trust that market innovative and leading Edibles, Oils, Vapes and Beverage products and manages ventures in the Hemp + Healthy, Cannabis/CBD Superfoods and Education and Technology sectors that promote healthy lifestyles for women, men, children and pets. http://www.demandbrandsinc.com
First of all, what I believe is the most important aspect of this press release in the CEO now deciding to UPLIST the security to OTCQB and become fully reporting company. I can’t state how crucial of a move this is for the company. Not only will it show more transparency to shareholders but will attract a whole new set of investors who only look at SEC fully reporting compliant companies. Something that many of you probably do not realize as well from the pr yesterday is that Tom appointed Bruce Hannan and Guy Peckham to INMG newly formed Board of Directors. (* To uplist to the OTCQB, a requirement is at least 2 board members or directors. ) This in my opinion was a brilliant move by Tom bringing in these to directors who helped build Premium Brands in Canada to surpass revenues of $1 BILLION dollars. I would like to add as well, the logistics in their domain being CANADA. These guys know the landscape there and we all know the NOW legal Cannabis sector in Canada is booming and so stock sector.
“Members of the DEMAND BRANDS team were an integral part of the expansion of Premium Brands Holding Corp, a Canadian Company, with current revenues exceeding 1 Billion Dollars. Our experienced Managers, with successful track records in manufacturing, production, branding, sales and distribution and a strong belief in the positive benefits of its products, share a passion and commitment to building a dynamic company in main and niche market categories with a solid foundation for growth.”
Demand Brand currently has 6 businesses under its umbrella and will be a excellent source of revenue towards INMG’s bottom line. Demand Brands is associated with an array of brands consumers have come to know and trust that market innovative and leading Edibles, Oils, Vapes and Beverage products. Demand Brands’ experienced team is committed to building only exceptional businesses which can become leaders in their industries and return long-term shareholder value.
It should also be noted, this was a non-dilutive acquisition meaning that it was for preferred restricted shares which are subject to Rule 144. (As stated in the PR above.)
So, to summarize here is where INMG is out now with its revenue streams. We have to increase that to at least 11 companies now from 5 prior to this press release.
1- Lux Digital Library
3- Kush Processing
4- Local Cannabis Dispensary
5- NIGHT FLIGHT
7- Weedies Edibles
8- Eagle Energy
9- Oil of Sunshine
11-The Canadian Organic Company
INMG is now a growing conglomerate of mainly cannabis sector companies that are well positioned to grow rapidly in their respected markets. With the new management team brought in, Tom is not the lone leader of INMG, he now has a well experienced team around him that helped build a $1+BILLION Dollar Revenue generating company. Tom now has a new board of directors team behind him that has the necessary experience and knowledge to create and delivery large growing revenues and shareholder value.
In closing, it was brought to my attention of a similar stock to INMG called Pot Network Holdings(POTN) that I did some research on. They have the same strategy, conglomerate business structure, and compete in some of the same sectors as INMG. However they have a much higher share structure and have a large amount of debt vs INMG. (*see links below). POTN currently trades at around .30 while hitting highs close to $1.00 and a low under .005. The current market cap valuation of the current price for POTN is $140M dollars and INMG is $2M. In my opinion, there is a tremendous amount of value and growth coming to INMG as it grows it’s revenue base and increases shareholder value. I word of warning, do not listen to the groupie bashers on the stock boards and do your own due diligence. The facts regarding INMG are all there and the transparency of the company is available to everyone. I encourage all of you to read them. POTN had the same groupie bashers and played the same exact games there to pry shares away from longs. They literally stole million of dollars of shares out of hands of many POTN longs with fear posts, outright lies, and other propaganda and manipulation. You can also be sure they then changed from their library of basher aliases to their long pump aliases and enjoyed the ride up of POTN shares they stole. That’s the OTC- The WILD WILD WEST, so once again do your own research and due diligence. Im 100% confident with INMG’s future prospects and major price appreciation shift to the upside.
Have a GREAT SUMMER!
DISCOSURE: The opinions expressed in this blog are of my opinion only. Please do your own due diligence prior to buying or selling any stock.