Digital Arts Media Network Inc (OTCMKTS:DATI) has hit headlines with impact upon its resolution to elect to retire about 18,526,879 shares of its common stock. As a matter of fact, this has brought the current outstanding down to 105M shares. The top provider is hoping to win the confidence of its shareholders. Asides from that, it will also be eyeing substantiating value through a share reduction program.
The Chairman and CEO of the top end company, Ajene Watson while speaking to some journalists said, “The goal is to reduce the outstanding share count by an additional 60M to 80M shares. We believe an aggressive share reduction will bring our cap table in line with anticipated valuations derived from our Angels+ and Invest+ Programs.”
AJENE WATSON, LLC is one of the company’s largest shareholders and the two have struck a deal. They will be seeking out to reduce the holdings by an estimated 70%.Analysts have given their view on the matter. They believe the reduction will come to pass as the provider moves ahead to achieve numerous milestones. These include the acquisition of executive talent and the ramping-up of its Angels+ and Invest+ Programs.
Mr. Watson strongly believes that a large chunk of the outstanding shares might be reduced in direct correlation to the aggressive ramp up of the Angels+ and Invest+ Programs. This will be in a bid to avoid dilution to the shareholders as well as strengthen the intrinsic value.
He expressed much optimism that indeed the provider would soon succeed to build its portfolio through these particular programs.
Digital Arts Media Network is hoping that its primary program, Angels+ will go a long way towards boosting valuations for the provider. This might move at a faster pace than the rest of the foreseen program management plans for the next 24 months.
The initial share reduction of over 18.5M shares according to analysts will help the company achieve much especially in the shaping up of the management and board. Ramping up the Angels+ Program is one of the provider’s top priorities at the moment according to Nasdaq.