Replies to post #4105 on DigitalTown, Inc. (DGTW)

[papadedavid]

DGTW do you know if they canceled the R/S HDOG? TIA.

https://www.otcmarkets.com/filing/html?id=13864054&guid=AHt6Uq67dul63th

[zhj8485]

Where does it say that, show me the proof ill buy 20 million right now

[INTHEKNOW1]

HEY GOOD TO SEE YA HERE BOSS! GAMES OVER HERE!

[stervc]

HDOGTX, with the DGTW common shares surviving...

I think the DGTW common shares surviving is huge. That is the #1 reason why any of us is here. It's been confirmed within their PR yesterday and also personally from the CEO if anyone chooses to call him.

They do have a plan for growth that they will reveal after they emerge from bankruptcy. The Sub Chapter 5 under the Chapter 11 that they have filed is something that is new to me, but is in the best interest of shareholders as their plan will be expedited to be signed by the judge much sooner than the norm. This won't be a 7, 8, 9, or more months process. I suspect that we will have closure within the next 90 days or less as things will continue to build to a climax.

The Sub Chapter 5 will streamline the process much faster than a regular Chapter 11, it allows for the Absolute Priority rule to go away, it means that there is no input from creditors for the approval for their plan of reorganization, and it means that only the judge is required to sign off on the approval for their plan of reorganization. All of this is huge for the company.

Here's the news again for those who had not seen it yet from yesterday:

https://www.otcmarkets.com/stock/DGTW/news/story?e&id=1696192
DigitalTown, Inc. to Use Voluntary Chapter 11 Process to Position Business for Long-Term Success

NEW WESTMINSTER, BC, Sept. 21, 2020 (GLOBE NEWSWIRE) -- DigitalTown, Inc. (OTC: DGTW) (the “Company”) announces that the Company has filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Minnesota, St. Paul Division, paving the way for business continuity, profitability and sustained growth in shareholder value.

Following the announcement of a new management team in May 2019, DigitalTown began making substantial progress on their commitment of cleaning up the Company’s balance sheet and exploring opportunities that would bring value to the Company’s shareholders. DigitalTown was successful in converting over $2 million of debt into stock and structuring a go-forward plan with appropriate financing measures. The plan’s execution was conditional on negotiating a satisfactory resolution with its former CEO who had an active, previously disclosed lawsuit against the Company at that time. DigitalTown’s various negotiation efforts were unsuccessful, leading to the granting of a summary judgment motion in favor of the Company’s former CEO due to the Company’s inability to access resources to formally defend itself.

Since that time, this same party has filed another lawsuit against the Company and has made hostile threats of additional suits against the Company as well as personal suits against directors and officers, unless management resigned and turned over control of the Company to him. DigitalTown’s management has been working on a detailed plan for moving the Company forward and realizing value for shareholders and all stakeholders, and is prepared to execute on this plan after a successful reorganization. In the absence of an alternate, genuine plan for the business clearly articulated by any other party, management would have considered it a breach of its fiduciary duty to turn the Company over to anyone to simply avoid the inconvenience of threatened, specious lawsuits.

“After careful consideration of all challenges and alternatives, we firmly believe that our Chapter 11 process represents the best long-term solution for DigitalTown to address its legal and liquidity challenges and to strengthen its operations for future growth and profitability,” said Sam Ciacco, CEO and Chairman of the Board of DigitalTown.

DigitalTown's approach to leveraging the benefits of Chapter 11 allows the Company to emerge with a healthy balance sheet and reorganize its debt and fairly treating creditors, while ensuring existing shareholders retain their equity stakes. Management decided on this preferred alternative to a Chapter 7 Bankruptcy in which the positions of DigitalTown’s creditors and shareholders positions would be entirely lost. This remains a possible outcome should the Company’s plan be obstructed in some way.

DigitalTown’s board and management is appreciative of the support and endorsements received to date from so many of its stakeholders.

About DigitalTown

Founded in 1982, DigitalTown has serviced various sectors from sports to computer training to computer hardware and software. DigitalTown develops turn-key hosted solutions for economic development, civic engagement and digital inclusion platforms for both web and mobile devices, improving the quality of life for residents and visitors in cities around the world.

Contact:
Sam Ciacco
CEO
[e-mail]
425-577-7766

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