RTG Ventures Restructuring Debt With 6-Month Window
NEW YORK, Feb. 21, 2012 /PRNewswire/ -- The Board of Directors of RTG Ventures (OTCQB:RTGV.PK - News) has been in negotiations to restructure its remaining short-term debt subject to equity conversion to ensure a six-month hiatus from the debt conversion which has been taking place since mid-September. The new contractual terms will contain that provision. The Company's intent is to pay the debt in full, in cash, on or before the six-months forward due date. This intended action replicates the Company's strategy as one of the short-term financing tactics utilized during its first year of operation. In fact, payment of RTG's first six-month debenture incurred in September, 2010, and was fully repaid in cash in March, 2011.
The new arrangement is a milestone for RTG, as it was the last vestige of the "perfect storm" which took place early last Fall and which the Company had no ability to control or stop at the time. For the benefit of new investors, a bit of historic perspective: In August, the Company embarked upon the first leg of an Awareness Program which ran for the month with the anticipation that CloudChannelLive would be ready to launch coincident with a celebrity endorsement and long-term financing. The Awareness Program was undertaken as part of a long term campaign intended to broaden the shareholder group to include more value-based, long-term investors. An Awareness Program was selected as a better option than a Share Buyback Program considered earlier as its impact would be more positive and longer lasting. The strategy was well-thought-out but unforeseen delays took place with the outsourced technology development, the result of which required the Board to totally reassess the way forward. A decision was made to focus on Digital Clarity, which emerged from the first year of operations as cash flow-positive, to include new, short-term revenue generation concurrent with bringing all technology development in-house under the aegis of Reggie James and his technology team.
Therefore, in the space of a week, the CEO left the Company, the product was delayed and being reassessed in-house, the long-term funding was no longer available, and the second in a series of five convertible debentures was due. For the next five months, until now, the Company has been positioning itself to build on the formidable presence of Digital Clarity and create a streamlined version of the Cloud Channel proposition, while identifying pragmatic revenue streams, with technology development around the core and vision of Pulse Station. Pulse Station will incorporate aspects of Cloud Channel while enhancing Digital Clarity's offering in social media. Potential partners and clients to whom the "pivoted" product was discussed last November saw Digital Clarity as being First Mover with a differentiating product and services offering. In a recent New York Times article entitled "In Tech, Starting Up By Failing," the comment was made: "To pivot is, essentially, to fail gracefully. While the term has been in the start-up lexicon for decades, it is coming up more often in the current internet boom, as entrepreneurs find that many investors are willing to keep the money flowing even if a start-up takes a hard left turn. 'Ideas are like lightning in a bottle; if a company is small enough and didn't capture lightning on the first try, it makes sense to try again. The art of the pivot is to do it fast and early. The older and bigger the business, the harder it is to change direction.' --comments from one of the founders of formidable venture capital firm Andreessen Horowitz." It has been a painful, but enlightening journey. RTG's Board is counting on a bright future; however, because structurally, RTG now has a very low debt position, with only friendly financing in place and business-wise, it is now in the right place at the right time.
Now that the restructuring of debt is in hand, James and Perry are prepared to begin to release additional internal and external developments through press releases over the next few days and weeks.
About RTG Ventures
RTG Ventures offers Music & Entertainment Technology Solutions and Digital Marketing Services. Harnessing the strength of its digital marketing agency, that has a trusted reputation over the last 8 years, the company has applied its knowledge process in developing cutting edge technology platforms for web, mobile and tablet devices.
Using Digital Clarity's application in the Marketing and Social arena, RTG Ventures offers a unique value proposition of intelligent, analytics based technology solutions with the support of an experienced digital marketing team. RTG Ventures, Inc. is an OTC:QB company. Symbol RTGV.
Safe Harbor Provisions
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in RTGV's reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.
Investor Relations Contact Information
First State Internet Services
Wilmington, DE 19804