Digital Asset Monetary Network Inc (OTCMKTS:DATI) has completed restructuring its contractor obligations cutting its cap table by over 3 million common shares. The restructuring also eliminated more than $550k from its cash payable liabilities.
The management expected talks with contractors would lead to only a two million common share reduction from the cap table. The talks, however, resulted in 3,348,879 common shares being exchanged for Preferred BB shares. In addition, contractors agreed to pay liabilities amounting to $557,910, which significantly eased the company’s balance sheet.
In a statement, DigitalAMN CEO, Ajene Watson, said that they are exploring all means to boost shareholder value and confidence. He noted that they have been working to streamline the cap since 2017 and now beginning to address payables, liabilities, and other debt. Watson noted that there has been a lot of support from many stakeholders and are working on creating a conducive environment to make Public Accelerator-Incubator (PAI) ecosystem more successful.
DigitalAMN in Talks to exchange common stock for DAMN Series BB Preferred Shares
In October last year, the company announced that it reduced ten million common shares. There have been recent negotiations in which DigitalAMN’s executive contractors are seeking to cancel their combined holdings of common stock in exchange for DAMN Series BB Preferred Shares. This is expected to cut the outstanding share count by a further 10%. Reduction in common stock helps boost confidence among executive contractors and shareholders.
DigitalAMN successfully negotiated with its second-largest stockholder to further boost stockholders’ confidence to cancel their entire block of two million (2,000,000) shares of common stock at the end of 2019. At the time, DigitalAMN’s CEO also reduced his shareholding by eight million (8,000,000) shares.
The share cuts are meant to impact the intrinsic value of each common share positively. Cumulatively, the company has canceled more than 100M common shares from the cap table. This way, the company has managed to avoid dilution and keep the rate below 5% per year.