I believe that the financials speak for themselves in showing the potential INMG has for rapid growth. The fantasy sports assets got bought out just like we said and you can see the effect of those on the Page F-5 where it has the Cash and Cash Equivalents – Endings at $392,837 for 2015, as opposed to a negative $31,747 for 2014.
Tom made a point toward the end of his August interview that he directed "particularly toward shareholders and future shareholders" that he was able to aquire the $4 million in film assets that provide the $200k per year free cash flow "without serious dilution to the current shareholder base." So, even though he hasn't been freely communicating with us for reasons I've brought out in previous posts, he's got shareholders in mind in carrying out his development of Innovativ Media Group.
If the RS is "planned" which is what the 10-K says, then that plan can change. It's not set in stone. If it does happen, I think Bill's goal is to get the pps as high as he can with news developments, more revenue from the new productions, and a buyback of issued shares this time instead of the last retirement of authorized shares. Then, in order to reduce the impact of those remaining 20 million Series C Preferred that can be demanded at $0.20 each, he could RS at 5 or 10 to 1, if needed, convert them to restricted common shares with a 6 to 12 month later conversion date, and then he's got 6 to 12 months to bring up the pps the rest of the way to so that the effect of their sale is minimized. And there's nothing that says those restricted common shares would be sold immediately either. If they are currently in strong hands then they could easily stay that way. Tom's already on record as having reduced some of the share structure to benefit the shareholders. I think he wants INMG to succeed and he's aware of us as shareholders because he specifically addressed the benefit to the shareholders in his interview in August.
Everyone was talking about the company's DD. It was building momentum even without anything from Bill. The company is still the same, production is moving along, the RS is not a for sure thing although if timed right it could be a good thing for the share structure, the VOD Search Engine is still a goal of the company along with the New Broadway Cinema and the new web channels in development. And BTW, in the interview, Tom mentioned the release of the H. P. Lovecraft channel in the second quarter of this year. I think he'll wait for all of these things to come together before entertaining the idea of doing any rs, if necessary.
Just IMO.
