$MMEG MEGA DD Package
Regarding the recent dilution:
As we move forward we will be seeking investments for the purposes of acquiring positive revenue generating companies. Businesses need investments to grow and seeking those investments for adding positive revenue and profits is the way well managed companies operate. As we’ve mentioned in previous audio updates, our growth strategy is squarely aimed at acquiring companies that fit into our online ad network, social media, gaming and ecommerce strategy, while also being synergistic with each other. Momentous has already proven this approach through its recent Chimera Game Asset purchase and now through our acquisition of Blackfox performance ad networks. Adding these recent two acquisitions to our existing business has potentially added upwards to $3 Million in top line revenue resulting in excess of $1 million in potential bottom line profits going forward. So yes, these recent investments have also caused some dilution, but it’s the kind of dilution that when all is said and done “produces real company growth and increased shareholder value”. http://www.momentousent.com/ir/MEG_Audio_Update_AUG_2017.html
Analysis: This is very self-explanatory. The company is trying to eliminate debt, and fund acquisitions of revenue generating companies. This will ultimately help the long-term growth of the company. As Kurt says, if you are here a quick profit, then this is the wrong stock for you. This is a long term play with many moving parts, and I believe that a lot of shareholder value will be created here once everything begins coming together.
Regarding the acquisition of Blackfox:
Blackfox was founded in 2014, and is a leading mobile advertising network with a strong worldwide affiliate network. The company has a broad customer base including over a dozen premium, big-budget advertisers, including Symantec, Tiger Media and Cliq Digital; all three companies are publically listed with revenues over $300 million.
Since inception, Blackfox has generated consistent revenue growth, including revenues north of $2.5 million in 2016. Blackfox customers have used the company’s platform to run major mobile ad sales campaigns for such companies as Walmart, Nutri-Systems, Old Navy, LivingSocial, Amazon, GoDaddy, Macy's, LendingTree and others.
The company has a unique competitive advantage by offering risk free plans, where customers only pay for successful installs or generated purchases. Blackfox also offers credit terms to qualified customers. With mobile advertising on the rise, and hundreds of pending affiliate applications, Blackfox is well positioned for continued growth. http://www.4-traders.com/MOMENTOUS-ENTERTAINMENT-G-20708068/news/Veyo-Partners-Advises-on-Momentous-Entertainment-Acquisition-of-Mobile-Ad-Network-Blackfox-24952081/
Analysis: It goes without saying that this acquisition was huge for $MMEG. We acquired a company that made $2.5 million in revenues last year, and the growth potential will allow it to produce even more revenue in the future by combining Blackfox’s services with MMEG’s other subsidiaries/offerings, such as Chimera games, and Poolworks.
Regarding Vert Capital:
Vert Capital is the largest outside shareholder of the Company. Vert owns or has significant interests in fast-casual restaurants (largest franchisee of LA-based Fatburgers
), sporting apparel manufacturers, and a collection of entertainment, technology, and e-commerce companies. We see ongoing synergies between Momentous and Vert Capital. http://www.momentousent.com/pdf/Report_MMEG_31517.pdf
Analysis: Think about it, Vert capital owns a majority of Los Angeles Fatburger fast food restaurants. That is only the beginning! Vert capital is a huge company, and they would not own a large stake in $MMEG if they didn’t believe they could make money! If you don’t believe me checkout Vert’s portfolio yourself, where they hold their ownership of Poolworks in high regard: http://www.vertcapital.com/portfolio.html