DigitalTown, Inc. (DGTW)

[stervc]

DGTW**Quick Plan of Reorganization & Memorandum Breakdown

The two Court Dockets filed by DGTW on Nov 27, 2020 are huge. They filed their Plan of Reorganization (POR) and their Memorandum Response greatly disputing and proving against the Motion to dismiss or convert 11 to 7 filed by the court appointed Trustee. These filings by DGTW positively prepares them to successfully emerge fairly soon from their Sub Chapter 5 under Chapter 11 Bankruptcy that was filed.

I see no need for anyone to breakdown every word, sentence, or paragraph. I'm going to skip to some things that caught my eye after quickly perusing through the Memorandum and the POR. Please understand that I could be looking at some things wrong, but basically much of it is cut and dry.

Within the Memorandum and the POR

1st - It stood out greatly how vigorously DGTW defended themselves against the court appointed U.S. Trustee to rescind their Subchapter V status and to convert or dismiss the case. They provided much justification to defend their stance. DGTW made it very clear that they are a “small business debtor” that qualified for relief under Subchapter V; that it is not “out of business”; that it has substantial on-going business activity; and more critically that it is able to reorganize effectively.

2nd - Much of the debt from 36 creditors has been converted into equity; 32 creditors had debt converted into common shares already issued into the Outstanding Shares (OS) and 4 creditors will be converted into preferred shares to not have an effect on the OS.

3rd - DGTW developed a new business plan and solicited and obtained commitments for new financing. Two groups agreed to finance DGTW with its new business plan; PowerUp Lending Group Ltd. to fund the short term working capital requirements immediately after Plan confirmation to provide approximately $300,000 and Premier Venture Partners for a $5,000,000 equity line of credit. Important to note, the line of credit for $5 Million is a huge show of confidence that the ones putting up that money knows what's coming into DGTW to give them such confidence in their current and future operations. To add, the $5 million line of credit appears to be delivered in the form of shares being purchased from DGTW to fund DGTW. This too is a huge show of confidence that they believe the growth coming into DGTW will justify buying shares of DGTW in these early phases at .01 per share or above to be strongly justified. See below:

I stated that the purchasing of shares for funding will transpire at .01 per share or higher because of the comment that was mentioned within the POR below:

This leads me to think that the ones doing the purchasing of DGTW shares to fund them the $5 Million have accounts that only allow them to buy or hold shares in their account at a price to where the Bid is no lower than .01 per share. This also leads me to think that the ones doing the buying also believe that they believe that buying at .01 per share is still buying at a discount and not a premium based on what they know to be coming into DGTW to justify such a thought.

4th – The current DGTW operations seems like it’s a mix between what TSNP with their SmartWallet solution proposed to provide a mechanism for instant payments, using Fiat or cryptocurrencies and PNNX with offering a Community Points reward system. Just as a quick history lesson, PNNX had gone from .0031 to .885 per share to settle down in the .065 to .10 per share range. And TSNP has gone from .0001 to close right at .11 per share and is still going as it is the most popular stock on IHub right now. I think there is a chance that there is something even bigger coming into DGTW than what currently exists that will either augment or replace its current operations based on what the CEO stated in the Memorandum of working diligently to identify prospective targets of acquisition once the plan is confirmed. I’m still leaning towards something additional that will be major is coming that justifies the reasoning for why they have a $5,000,000 Line of Credit and $300,000 for their short term working capital.

v/r
Sterling