Replies to post #8341 on DigitalTown, Inc. (DGTW)

[WorkinGreen]

Excellent post Sterv

TY

$DGTW

[Sirpeter]

StervC you are the bomb...many thx...I'm more comfortable with this one than was with BRTxxxx

[DDA]

As always ... straight to the essence ...

[JPS02]

Global Mobile Payment Market to Grow $12.06 Trillion by 2027

Increase in penetration of smartphones across the globe and rise in the m-commerce industry in emerging countries are the major factors driving the growth of the mobile payment market. By transaction mode, the mobile web payments segment held the major share in 2019. By region, on the other hand, Asia-Pacific would remain lucrative throughout the forecast period.





Source of Extracts:

https://www.globenewswire.com/news-release/2020/11/05/2121173/0/en/Global-Mobile-Payment-Market-Size-to-Grow-12-06-Trillion-by-2027-at-30-1-CAGR.html

Secondary link:

Global Mobile Payment Market Size to Grow $12.06 Trillion by 2027, at 30.1% CAGR $TSNPhttps://t.co/uOQdxIDXIb

— TAP, Inc. (@TAPinvest) November 13, 2020

- Great post Stervc with well articulated thoughts as always. I think the upcoming global mobile payment market growth presented in the article above will provide opportunities for DGTW to generate decent revenues from its SmartWallet solutiom which can help support its emergence from bankruptcy.

Go DGTW!

[OCMillionaire]

another tsn*? :-) LOL

[dipANDrip]

Awesome summarization, should be stickied! $DGTW

[Bklynblaze]

Thank you for this stervc. $$$$

[elks]

EXCELLENT POST !!!!!!!!!!!! DGTW !!!!!

[Papa Bear]

Great post Sterling! Would not expect anything less from you my friend! $DGTW

[Newc]

Wow... I’m going to get more!! Very interesting por and interesting next week!

[benjimane]

Thank you stervc for that detailed and thorough post. You always lay it out there nicely! Excellent!!

$DGTW

[LionsPride]

yup very nice might need more coolers lmao

[JasonM3K]

Great post stervc!

$DGTW

[stervc]

DGTW**Beautiful thing about its $5,000,000 Financing...

The beautiful thing about the $5,000,000 in financing that they have is that...

1. It hasn't started yet since the price should get higher.
2. The higher the stock price goes, the less dilutive it is to DGTW.
3. The Financer is willing to purchase $5,000,000 worth of shares.
4. The DGTW shares purchased by the Financer is at 80% of the lowest individual daily VWAP during the Pricing Period (as defined below).

Let me further explain their agreement within their Plan of Reorganization (POR)...

Let's presume that DGTW closed at .05 per share on a Friday. Then on that upcoming Sunday DGTW sends in a Purchase Request to their Financer (Premier Ventures Partners, LLC) to request that they want $1,000,000 of their $5,000,000 of their financing. Then considering that the price stays at a minimum .05 per share for the next 5 consecutive trading days since the range is from the 1st trading day to the 5th trading day, the Financer will send DGTW the $1,000,000 by buying shares from DGTW that will be sent to them through a DWAC transaction and pay 80% of .05 per share which would be paying .04 per share for the $1,000,000 worth of shares. Per within the POR, an S-1 will be filed with the SEC to substantiate the transaction. So, they would send them...

.05 per share x .80 (80%) = .04 per share

$1,000,000 ÷ .04 = 25,000,000 shares

As the price gets higher, from the logic above from their Plan of Reorganization (POR), the financing becomes less dilutive. You can use the Substitution Property to switch in and out share prices higher or lower to get the amount of shares used for funding without using a share price below of .01 per share for the logic that I explained within the post below:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159770701

This means that at .01 per share, the most amount of shares used to provide the $5,000,000 in funding will be 80% of .01 which would be 625,000,000 shares. This is as a worst case scenario. I have a feeling that we should be going past .01 per share. At .05 per share in the example above, the most amount of shares used to provide the $5,000,000 in funding will be 80% of .05 which would be 125,000,000 shares. At .10 per share in the example above, the most amount of shares used to provide the $5,000,000 in funding will be 80% of .10 which would be 62,500,000 shares.

This is one of the best financing agreements that I have seen for a stock in my over 30 years of investing. This a beautiful and very fair financing agreement that is awesome for DGTW and us shareholders. They are leading by example. They are showing the market and the world how things are supposed to be done for a stock obtaining financing. I can't say it enough that the CEO strongly hinted that something much bigger is coming and will be revealed after they emerge from bankruptcy. In my opinion, the Financers are willing to be so investor friendly with their financing agreement because they know what is coming and because they will become a substantial shareholder as they fund DGTW. They know that they would be only helping their investment to continue becoming huge with its growth. I believe this is way bigger than what we are seeing right now for them to provide such friendly financing.

v/r
Sterling

[Vincent1974]

Thank you STERVC for your DD. You always do a lot of work for every investor. I appreciate it a lot.

[Capitalvaluetrade]

Another exceptional analysis done by stervc. I will be holding for much higher profits here than I realized. Anything below pennies looks rudimentary in the process. Excellent work my friend

[StocksGoneWild]

I'm gonna guess that at least 30-40 people have already put in their buy orders for the open tomorrow...mines in. I think breaking a penny tomorrow is a real possibility. Your 4th really activated my almonds, thank you!

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159770701

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.

[trader59]

Please. The company "vigorously defended themselves" by saying, basically, "we didn't have to report because we stopped reporting and that automatically removed the requirement (my paraphrasing, not a quote)." And... "we only had 287 shareholders of our 3B shares instead of the 300..."

And, their "new" financing and "new business plan" vs their old are remarkably similar, so much as they're essentially the same. A new convertible note of $300k from a toxic lender (Power up Lending, who's already converted and diluted the stock prior to the bankruptcy) and a "new" $5M line of credit that (and this is the kicker) they'll get money from once they file a stock registration, which they'll have to do the reports for they're claiming they didn't have to do. That'll take 2-3 months to get through the SEC at best speed. Oh, and they'll have a $125k note to pay this creditor, too. And all of this new financing is convertible notes with a 20% discount.

Yes, the vendor doesn't have to buy shares if the bid is less than a penny, but they will if there's liquidity to make their 25% profit. All that means is they'll stop once they've diluted the share structure into oblivion.

That "most recent rendition" thing at the bottom could be re-labeled the "most recent pump failure," as they didn't do any of it. They don't have a "smart wallet solution," that was just an old pump. That's why it's labeled "previous rendition." Their "new" business plan is on page 17 of that document, and instead of trying to sell websites to cities and towns using their old software, they're going to "redeploy" and "repurpose" and try to sell websites to cities and towns. Translation: it's the same thing that didn't work before.

The company lost money each year of the last 4 before they failed and went out of business, then bankrupt. They "project" success, but give no basis for it considering the idea has not changed, failed, and will fail again considering the location based searches that are already online to look for businesses wherever you happen to lay your head (ever heard of Yelp?). The company has been living off of convertible debt, and their "plan" is to convert their debt into stock and then take on new convertible debt that can exceed the current debt.

It was good for a laugh.

By the way, here's what your CEO does for a living. Looks like he's pretty good at this:

https://ciaccohomes.com/

[BERKSHIRE AGENT]

Excellent DGTW Analysis STERVC!

[elks]

Excellent post !!!!!!!!!! DGTW !!!!!!!!!

[threewheeler]

any mention of the r/s 2000/1 https://www.otcmarkets.com/filing/html?id=13864054&guid=Vz-qUeO9abD2Bth ? Approval to adopt and file an amendment to our Articles of Incorporation, as amended (the “Articles of Incorporation”), to effect a reverse stock split at a ratio of up to and including 1 for 2,000 (the “Reverse Stock Split” or the “Action”), in the Form of Certificate of Amendment to the Articles of Incorporation of DigitalTown, Inc. attached to this Proxy Statement as Exhibit A;

[Backstabbed]

$DGTW - excellent analysis! $5M credit available for use! $0.01+ coming!

[LETSWIN2020]

Waiting for your post and dd. And this goes bonkers

[stervc]

DGTW**Quick Plan of Reorganization & Memorandum Breakdown

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159770701
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 non-dilutive and 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 non-dilutive financing of $5,000,000 and the $300,000 for their short term working capital.

v/r
Sterling

[luke424]

Congrats Stervc on your insights of DGTW!

[West2]

Good DD from one of the best on IHUB and the return is near. Thank you again stervc for your honesty

[stervc]

DGTW**Quick Plan of Reorganization & Memorandum Breakdown

A blast from the past regarding DGTW with a few minor changes as things are finally starting to come together:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159770701

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.
Update courtesy of Willymon: DGTW - "DigitalTown convinced all of its major creditors except for Pomije to convert their debt into equity."
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166110769

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 non-dilutive and is a huge show of confidence that the ones putting up that money knows what is 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 buying at .01 per share is still buying at a discount and not at a premium based on what they know to be coming into DGTW to justify such a thought. They believe the price will be going much higher to see that $5 Million as an investment.

4th – The current DGTW operations seems like it’s a mix between what TSNP with their SmartWallet solution proposed to provide as 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 .25 to .35 per share range. And TSNP (now HMBL) had gone from .0001 to hit $1.93 per share pre-split as it was the most popular stock on IHub at such time. I think there is a chance that there is something just as big that could be 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 non-dilutive financing of $5,000,000 and the $300,000 for their short term working capital.

Also important to note was the fact that the judge/court denied the trustee's motion to convert/dismiss, without prejudice:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=160425514

v/r
Sterling

************************************************************************

DGTW**Beautiful thing about its $5,000,000 Financing...

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=162969325
DGTW**Beautiful thing about its $5,000,000 Financing...

The beautiful thing about the $5,000,000 in financing that they have is that...

1. It hasn't started yet since the buying starts at .01 per share.
2. The higher the stock price goes, the less dilutive it is to DGTW.
3. The Financer is willing to purchase $5,000,000 worth of shares.
4. The DGTW shares purchased by the Financer is at 80% of the lowest individual daily VWAP during the Pricing Period (as defined below).

Let me further explain their agreement within their Plan of Reorganization (POR)...

Let's presume that DGTW closed at .05 per share on a Friday. Then on that upcoming Sunday DGTW sends in a Purchase Request to their Financer (Premier Ventures Partners, LLC) to request that they want $1,000,000 of their $5,000,000 of their financing. Then considering that the price stays at a minimum .05 per share for the next 5 consecutive trading days since the range is from the 1st trading day to the 5th trading day, the Financer will send DGTW the $1,000,000 by buying shares from DGTW that will be sent to them through a DWAC transaction and pay 80% of .05 per share which would be paying .04 per share for the $1,000,000 worth of shares. Per within the POR, an S-1 will be filed with the SEC to substantiate the transaction. So, they would send them...

.05 per share x .80 (80%) = .04 per share

$1,000,000 ÷ .04 = 25,000,000 shares

As the price gets higher, from the logic above from their Plan of Reorganization (POR), the financing becomes less dilutive. You can use the Substitution Property to switch in and out share prices higher or lower to get the amount of shares used for funding without using a share price below of .01 per share for the logic that I explained within the post below:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166292294

This means that at .01 per share, the most amount of shares used to provide the $5,000,000 in funding will be 80% of .01 which would be 625,000,000 shares. This is as a worst case scenario. I have a feeling that we should be going past .01 per share. At .05 per share in the example above, the most amount of shares used to provide the $5,000,000 in funding will be 80% of .05 which would be 125,000,000 shares. At .10 per share in the example above, the most amount of shares used to provide the $5,000,000 in funding will be 80% of .10 which would be 62,500,000 shares.

This is one of the best financing agreements that I have seen for a stock in my over 30 years of investing. This a beautiful and very fair financing agreement that is awesome for DGTW and us shareholders. They are leading by example. They are showing the market and the world how things are supposed to be done for a stock obtaining financing. I can't say it enough that the CEO strongly hinted that something much bigger is coming and will be revealed after they emerge from bankruptcy. In my opinion, the Financers are willing to be so investor friendly with their financing agreement because they know what is coming and because they will become a substantial shareholder as they fund DGTW. They know that they would be only helping their investment to continue becoming huge with its growth. I believe this is way bigger than what we are seeing right now for them to provide such friendly financing.

v/r
Sterling