Digital Brand Media and Marketing Group Inc (DBMM)

[davidam]

Well yes in fact they do. There is a whole world of derivatives, options, puts and calls in which investors take a position on the future. And then it became crystal clear:
RTG identified a private company, who shares their philosophy. Build a sustainable company and be stronger together. In order to acquire them under SEC regs, there had to be consideration, so 10% of RTG as a base case was the initial "put." It is irrevocable. But the management of BE who have decades of building businesses, many in the micro-cap public market, their expanding Platform Pipeline can be exponential, and should result in an extremely valuable company. The performance milestones will be stewarded and made public. Each time one is achieved, it is a news event. Market should react.



That is why this deal worked for them. Like industry--like values--like goals--like exit strategy. They are not speculators, nor are they traders, they are building a valuable enterprise with RTG.So they don't want to flip shares along the way, they are happy to wait a year and maximize their reward based on results no one can take issue with.



RTG paid consideration to BE, and put NO cap on the conversion of that consideration from Preferred to Common in a year's time, if the performance is there. That is shareholder friendly--and encourages the kind of investor who will grow with the Company. The valuation is one year out. There is no valuation of the business combination at this time.