Hello everyone. Spring is coming very soon and this is when the market heats up over the next few months before the Summer arrives. Today, I want to bring to you one of my favorite stocks – Innovativ Media (INMG). Innovativ Media Group is a developer, producer and distributor of digital entertainment and other multi-media content. It is a principle partner in CannaNet.TV, which owns and operates LocalCannabisDispensary.Com and Kush Processing. http://www.cannanet.tv, which launched on November 28, 2017, is an online, ad supported channel, streaming entertainment, informational and educational content related to the cannabis culture and industry and which also owns and operates http://localcannabisdispensary.com and http://kushprocessing.com
INMG hit a high of .044 back in September of 2017 with just preliminary content ideas and a late fall launch date, but here we are several months since the launch of CannaNet.tv and its recent acquisitions and the stocks price is sitting well under a penny. WHY IS IT UNDER .01 YOU ASK AND NOT AT MUCH HIGER LEVELS?
First lets look at the share structure current numbers back then in late November and compare them to now. THE NUMBERS HAVE NOT CHANGED. The only thing that has changed is the MarkeValue1 is even LOWER than back in November. WHY? Again, I will answer that later in this blog.
March 19, 2018 INMG Security Details Share Structure
Market Value1 $2,135,425 a/o March 18, 2018
Authorized Shares 500,000,000 a/o March 11, 2018
Outstanding Shares 281,724,670 a/o March 11, 2018
Float 172,611,600 a/o March 11, 2018
November 22, 2017 INMG Security Details Share Structure
Market Value1 $2,958,109 a/o Nov 20, 2017
Authorized Shares 500,000,000 a/o Nov 20, 2017
Outstanding Shares 281,724,670 a/o Nov 10, 2017
Float 172,611,600 a/o Nov 10, 2017
Next, lets look to see if the CEO OWNERSHIP of INMG COMMON Stock has changed since my last blog back in November.
Well, It has not. So WHY is INMG trading under .01 AND NOT AT MUCH HGER LEVELS? You’ll have to wait to later in this blog for my answer.
C. Beneficial Shareholders. All persons/entities beneficially owning more than ten percent (10%) of any class of the issuer’s equity securities are:
Common Stock- Tom Coleman, President Innovativ Media Group – 92,000,000 shares.
If you do the math, the CEO owns about 1/3 of the OS of 281 Million. Also, in the filings it is disclosed that the CEO does NOT earn a salary, but agreed to take the position of the CEO for restricted shares.
So in summary, I want to make in clear the three major markers I look for to see why a stock is going down have NOT CHANGED!
1- A/S, O/S, FLOAT have NOT changed
2- NO CURRENT DILUTION or TOXIC DEBT
3- NO CEO/INSIDERS SELLING SHARES
BUT WHY IS INMG TRADING UNDER .01 AND NOT AT MUCH HIGER LEVELS? Patience, I’m going to answer that later in my blog.
Next lets examine on how the company is doing financially in terms of revenue, assets, debt/liabilities, etc. I will first point to a press release that came out on select news sources:
Innovativ Media (INMG) Releases Year End Financial Results Press Release | 03/12/2018
COMPANY POSTS 4TH QUARTER EARNINGS AS REVENUE AND ASSETS GROW
LOS ANGELES, CA, March 12, 2018 (GLOBE NEWSWIRE) — Innovativ Media Group, Inc. (OTCPK:INMG) (“Company”) today released its year-end Financial Statements for 2017. Company revenues for the year grew by approximately 19%, EBITDA in the 4th Quarter was $13,013 and total assets increased by $158,330. The Company’s revenue during the year continued to be driven primarily by content licensing as its new platforms did not launch until late in the year and are not expected to have material impact until 2018.
Tom Coleman, CEO of Innovativ Media, said: “2017 was a year of significant developments for Innovativ Media with several asset acquisitions, the launch of CannaNet.TV http://www.cannanet.tv and http://www.localcannabisdispensary.com along with the 1st Quarter 2018 agreement to provide merchant banking services to the cannabis industry via Kush Processing http://www.kushprocessing.com. The Company has committed to focusing its media strategies on the burgeoning cannabis industry sector and we expect these investments will measurably and positively contribute to a strong financial performance in 2018.”
CannaNet.TV http://www.cannanet.tv, which launched on November 28, 2017, is an online, ad supported channel, streaming entertainment, informational and educational content related to the cannabis culture and industry and which also owns and operates http://localcannabisdispensary.com and http://kushprocessing.com
What important to point out in the Pink Sheets/OTC is that and overwhelming majority of the trading stocks are startups, ‘pre-revenue” (meaning not earning any revenue), have exorbitant amounts of debt/liabilities in various forms of toxic debt financing that have piled up since the inception of the company.
Now, if you examine INMG filings you will see the company is earned $228,945 in revenue for 2017 up from $185,955 in 2016. *What’s important to note is most of the increase came in Q4 2017 with the Launch of Cannanet.tv on Nov. 28th, 2017 (The filings ONLY reflect about 1 Months of revenue in December 2017.)
Next, lets look at TOTAL LIABILITIES AND STOCKHOLDERS EQUITY in these most current year end filings: 2017 it was + $2,841,051 vs. $2,682,721 in 2016. Another GREAT SIGN the company is heading in the right direction.
SO WHY IS INMG TRADING UNDER .01 & NOT AT MUCH HIGER LEVELS YET? I’m getting real close to telling you. Keep Reading.
Lastly lets look at all the Acquisitions & Material Events in INMG over the last 6 months or so.
1- Launched – CannaNet.tv – Launched Cannanet.tv worldwide on Nov. 28th.
Revenue mainly generated by paying advertisers on the admaximizer platform.
Through its advertising partner, http://www.admaximizer.com the platform utilizes engaging formats, ad serving, mediation, and programmatic video advertising across desktop and mobile screens which enables CannaNet.TV to support video ads from all Advertisers regardless if they have transitioned to HTML5 or still utilize Flash through this single tag solution. To date, I counted over 40 advertisers on the website including some national brands like Amazon, TD Ameritrade, Mucinex, etc., and also many other Cannabis related products and services specific to the sector.
Revenue also generated through Live Stream Events, Exclusive Content Licensing, and Night Flight minority ownership.
2- Acquired – LocalCannabisDirectory.com
INNOVATIV MEDIA (INMG) ACQUIRES LOCALCANNABISDISPENSARY.COM FOR CANNANET.TV
LOS ANGELES, CA November 13, 2017 (InvestorsHub NewsWire), Innovativ Media Group, Inc. (OTCPK: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 underserved 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”.
Let look at potential revenue here. Remember the Q4/Yearly that came out last week was for basically just December revenue. This is from the LocalCannabisDispensary.com website: The cost for advertising a dispensary ranges from FREE to $49.00 a month for a Premium/Featured Account listing. To be featured means you pop up first and on their hope page for the state. There are well over 500 listed, not sure how many are paying FEATURED/PREMIUM Accounts, but if you look a the home page and filter by state you will see a lot of them.
3- Acquired- KushProcessing.com- From About US page:
Based in the beautiful state of California, Kush Processing specializes in Cannabis, CBD, Hemp, Edibles, THC, and similar high-risk industries. If other credit card processors have turned your business down, you are in the right spot. We specialize in a long-term strategy to provide stable processing to high-risk, medium-risk, or low-risk businesses. We also offer additional services to provide a complete processing solution.
Highlights from PR on Jan. 24, 2018
Kush Prossing shall offer credit and debit card processing along with various other merchant processing services which the Company and INMG will market through CannaNet.TV http://www.cannanet.tv and Local Cannabis Dispensary
One of the biggest challenges that has faced the rapidly scaling legal cannabis industry has been that many have been forced to exclusively operate as high risk, cash only businesses due to strict US Federal banking regulations. The Company, through established strategic partnerships, alliances within the credit card processing sector utilizing banks that recognize the significant opportunity, has developed a unique merchant banking solution that it will now begin offering to qualified businesses. ‘Kush Processing’s management team brings together over 15 years of experience in the merchant processing industry. With over 500 dispensaries already listed in Local Cannabis Dispensary, the projected growth of new dispensaries and stores, and the ability to advertise and market on the CannaNet.TV and LocalCannabisDispensary.com platforms, we anticipate significant near-term demand for the service. The Cannabis industry has long required merchant solutions to increase sales, efficiency, safety and security and we believe we are uniquely positioned to provide these solutions which will bring enhanced value and benefit to the legal cannabis community.”
Innovativ Media Group CEO Tom Coleman added: “We are very pleased to now be able to offer this vital service to our CannaNet.TV and LocalCannabisDispensary.Com communities. In addition to securing cannabis friendly credit card processing Kush will be able to provide our growing network of dispensaries and stores with a range of operational solutions including delivery, storefront, ecommerce and other accessories which will help position the industry more into the economic mainstream. Kush plans to expand the products and services it offers for the Cannabis industry over the next few Quarters and is also researching crypto currency processing and payment options for customers.”
Lets take a look at the revenue possibilities from Kush Processing. According to the Statistics Portal on Medical Cannabis the average dispensary does about $3M dollars a year in revenue. See link below.
Typical revenue, expenses and startup costs for medical marijuana dispensaries in the U.S. as of 2017 (in U.S. dollars) https://www.statista.com/statistics/784483/revenue-expenses-and-startup-costs-for-medical-marijuana-dispensaries/
Let’s just say for example purposes they signed up only 25 legal dispensaries of the over 500 already singed up on LocalCannabisDispensary.com with a transaction/processing fee of only 1%. $3M x .01% = $30,000 a year Kush Processing will earn per dispensary.. Now, times that by 25 legal dispensaries = $750,000 per year if they signed up 25 legal dispensaries. The bottom line is KUSH PROCESSING has the potential to be a huge revenue generator for INMG.
4- EXCLUSIVE CONTENT for CannaNet.tv – The Green Room Comedy Show – Premiering on 4/20 on Cannanet.tv
Innovativ Media (INMG) to Premiere “The Green Room Comedy Show” on CannaNet.TV Starting 4/20 Press Release | 02/27/2018
New Episodes of the Original Series to be Available Weekly
LOS ANGELES, CA, Feb. 27, 2018 (GLOBE NEWSWIRE) — Innovativ Media Group, Inc. (OTCPK:INMG) (“Company”) today announced that it has completed filming the initial episodes of The Green Room Comedy Show and the series will begin streaming exclusively on CannaNet.TV http://www.cannanet.tv on April 20, 2018. Subsequently new episodes will be released weekly starting April 27th.
The Green Room Comedy Show is a comedy series featuring professional comedians performing cannabis related material that incorporates original animation and is recorded in front of a live audience at The Comedy Bar in Toronto http://www.thecomedybar.ca. The series is produced, directed and animated by Stephen Sloan of Sloan Motion Pictures http://sloanmotionpictures.com and some of the series performers include Bryan O’Gorman, Rahil Shaikh, Andrew Packer, Drew Grav, Pat Macdonald, Adrienne Fish, Cal Post, Collin Sideris, Dan Guiry, Rebecca Reeds, Shawna Edwards, Joey Harlem, Tex Ekness, Patrick Haye, Tommy Marshall and Jonathan Macey.
Tom Coleman, CEO of Innovativ Media, said: “The “Green Room” is hilarious, provocative and timely and it only seemed appropriate to premiere it 4/20. The show is also a good example of the kind of original programming we intend to develop along with curating a wide variety of quality, targeted content from third party producers and distributors.”
http://www.cannanet.tv, which launched on November 28, 2017, is an online, ad supported channel, streaming entertainment, informational and educational content related to the cannabis culture and industry and which also owns and operates http://localcannabisdispensary.com and http://kushprocessing.com
The Green Room Comedy Show is exclusive content that will be owned by CannaNet.tv. It’s extremely important for networks/channels or platforms to have their own exclusive content to grow their viewership base. This is what brings “eye balls” to the channel to grow and become a viable network in the sector to which they’re trying to capture. In the Cannabis space, I do not know of any other Networks that are currently following the model INMG/CANNANET.TV model- Cannanet.tv is the first. The possibilities of licensing this content and future shows is a major potential revenue stream. For example, INMG was to license the content to say COMEDY CENTRAL they would receive a royalty fees for their episodes. As a side note, Sloan Motion Picture, who produced the The Green Room Comedy Show, has also done work for COMEDY CENTRAL so the connections are there for deals to be made. See this link for confirmation. http://sloanmotionpictures.com/about/
So, WHY IS INMG TRADING UNDER .01 & Not At Higher Levels Where it Should be? Here is why.
In the OTC, volume is KING! Over the last several months, volume in INMG has been extremely light, as many traders or shareholders have sold out in this low volume dragging the price down unnecessarily. The impatience levels on the OTC are very high among traders as the see other stocks take off and they simply don’t want to miss the potential ride up in those other tickers. Well that is exactly what has happened with INMG the last few months with many traders and shareholders selling at a loss to chase the “stock flavor of the day or week- THAT’S HOW THE OTC WORKS.” The bottom line is INMG has grown to now having multiple producing revenue streams compared to what it had back in September when the price hit .044, and that was when the last of the Preferred B Shares where diluted before being extinguished by the CEO. Now with the Preferred B Shares being removed, there has been NO DILUTION in INMG since the late September/October time frame. Go back and look at OTC markets for updated share structure. You will see this is factual, that there has been no increase in the numbers since then. All the deals the CEO is putting together are for restricted shares subject to rule 144, that don’t have any chance of hitting the market to the back half of 2018, if at all. That is why I’m calling this an unwarranted drop in price for INMG, when every single criterion you measure a stock by has been favorable except one- VOLUME, and volume is KING on the OTC.
*Here is my 10-point criteria checklist. I would be willing to bet that INMG has one of the most POSITIVE and FAVORABLE criteria to support a run, and has the potential revenue growth to support and sustain much higher price levels than these current prices vs. any stock on the OTC. In fact, I will compare it to few cannabis sector runners below to show you exactly what I am talking about why INMG is at a price level that is totally unwarranted.
(1-Small Float and OS, 2-No Dilution, 3-No insider selling, 4-No toxic debt, 5-Increasing revenues that will be up significantly starting in Q 1 2018, 6-Increased stock holder equity, 7-several acquisitions in cannabis space that have large potential revenue streams, 8-increased assets and cash on hand, 9-little debt and liabilities, 10-the first media network/cannabis conglomerate that I know of on the OTC.)
Lets compare some of the INMG criteria I have laid out vs. some sector runners. I key thing to note here is that the CEO of INMG does not utilize any stock promotional services or newsletters. I have not been able to find any and I believe that is a good thing. Yes, you might get the increased volume and hype from these services, but you can be almost certain they will drop back down because these services are hired for when these companies are diluting shares. I have always believed that an organic stock run is the best run and the sustainability in the price has a much higher chance of being attained by the merits by the company’s actions within the criteria I’ve discussed above. Lets look at the following stocks: AMFE, LVVV, POTN, NXTTF, SGMD, PNTV. I encourage all of you to look at these stocks share structures and filings. All of these have stocks below have either a much higher FLOAT, OS, AS, DEBT, LIABILITIES, CURRENT DILUTION, & ARE MUCH FOR FURTHER AWAY FROM THE PROFITABILITY THRESHOLD VS. INMG, but yet trade HIGHER. WHY IS THIS?
In a word, it’s UNWARRANTED.
not justified or authorized.
“I am sure your fears are unwarranted”
synonyms: unjustified, uncalled for, unnecessary, unreasonable, unjust, groundless, excessive, gratuitous, immoderate, disproportionate, undue, unconscionable, unjustifiable, indefensible, inexcusable.
Additionally, it’s due to the lack of volume, and nothing else. It’s certainly NOT the company’s achievements I have outlined or the company’s transparency. The CEO puts out material based news about once a month, and updates otcmarkets.com around the same time.
AMFE is currently trading at .15 cents
AMFE SECURITY DETAILS- Share Structure
Market Cap- $68,053,949 03/19/2018
Authorized Shares 600,000,000 01/19/2018
Outstanding Shares 479,253,160 01/19/2018
Float 303,158,992 01/19/2018
NXTTF currently trades around $1.75
NXTTF Security Details – Share Structure
Market Cap 411,599,774 03/19/2018
Authorized Shares 233,863,508 12/18/2017
Outstanding Shares 233,863,508 12/18/2017
Float 233,863,508 12/18/2017
POTN is currently trading around .35 cents.
POTN SECURITY DETAILS- Share Structure
Market Cap $93,122,567 03/19/2018
Authorized Shares 1,000,000,000 09/30/2017
Outstanding Shares 269,920,485 11/28/2017
Float 269,920,485 11/28/2017
LVVV is currently trading around .05 cents.
LVVV SECURITY DETAILS- Share Structure
Market Cap- $28,175,612 03/19/2018
Authorized Shares 1,489,000,0000 03/12/2018
Outstanding Shares 720,603,8760 03/12/2018
Float 477,383,7260 6/23/2017 (*note even updated)
PNTV is currently trading around .07 cents.
PNTV SECURITY DETAILS- Share Structure
Market Cap $40,589,059 03/19/2018
Authorized Shares 1,200,000,000 03/15/2018
Outstanding Shares 588,247,236 03/15/2018
Float ? (*not updated since 2015, with the recent increase in AS/OS you could be sure it’s close to the OS. )
SGMG is currently trading at about .18 cents.
SGMD SECURITY DETAILS-Share Structure
Market Cap $43,294,260 03/19/2018
Authorized Shares 300,000,000 02/28/2018
Outstanding Shares 247,395,774 02/28/2018
Float ? 12/28/2016 (*Not updated for over 2 years so its probably very close to the OS.
So, let me wrap up my blog by saying the following about INMG. I believe this excessive drop in price is part of the cyclic dynamics of the OTC, and has been amplified by the low volume that traders and or shareholders have been selling into for months. I believe this price drop is completely unwarranted, because the transparency, progress and acquisitions, company filings and criteria that determine the health of a stock’s sustainability are all very good and one of the best stocks I see on the OTC. In fact, I cannot find a cannabis stock or any stock under $0.10 with a 172M float, earning growing revenues through multiple streams, has little debt, and approaching profitability like INMG. You can also throw in the CEO skin in the game only owning common shares (92M common shares) and not earning a salary to the mix. Additionally, I believe INMG is heading in the right direction with its recent acquisitions and multiple revenue streams (Kush Processing, Local Cannabis Dispensary, Night Flight), exclusive content like The Green Room Comedy Show, an the unique advertising ad-maximizer platform and at the same time keeping the shares structure in tact and not diluting shareholders while increasing assets. Its just a matter of time before the invest community realizes how good of buying opportunity INMG is with this unwarranted drop in price. Finally, there are many rumors and email conformations from the company outlining that they are developing and close to releasing apps for Cannanet.tv and LocalCannabisDispensary.com along with exploring a crypto currency platform. “Kush plans to expand the products and services it offers for the Cannabis industry over the next few Quarters and is also researching cryptocurrency processing and payment options for customers” (from pr on Jan. 24, 2018)
Disclaimer: The above blog is of my opinion only and based on filings and news from the company. Always do your own due diligence before buying or selling a stock.