Digital Arts Media Network completes acquisition of equity stake in truCrowd to expand accelerator service offerings
Digital Arts Media Network, Inc. (OTCMKTS: DATI) has reached an agreement to acquire a portion of crowdfunding portal truCrowd.
NEW YORK, March 20, 2018 (GLOBE NEWSWIRE) — Digital Arts Media Network, Inc. (OTCMKTS: DATI), a specialized tech accelerator leveraging the Public Accelerator-Incubator (PAI) model, announced today that as publicized by truCrowd, Inc. (owner and operator of www.truCrowd.com), the Company has completed talks and executed an agreement with truCrowd, to acquire up to 39.89% in the SEC-registered, FINRA member crowdfunding portal.
truCrowd is 1 of only 38 Reg. CF portals currently registered with FINRA. As one of the first crowdfunding portals to register with the SEC, DATI’s management targeted truCrowd due to its management’s long-standing experience in the crowdfunding space. With approximately 6,000 registered users, truCrowd has been successful in meeting their client’s/issuer’s capital targets. Furthermore, truCrowd is positioned to have a positive impact on DATI’s business model.
As part of Invest+, DATI has purchased a 19.9% equity stake in truCrowd that will vest over 6 months, with an option to acquire an additional 19.99%. In this bold move, DATI has strengthened its service offerings to startup and development stage companies, in addition to bolstering DATI’s value proposition to angel investors and “disenfranchised investors” (microcap and non-accredited investors). The opportunity for more startup and development stage companies to leverage Angels+ has also increased significantly with this agreement; truCrowd itself will leverage DATI’s Angels+.
“Tech startups are continuously looking for alternate, faster ways to raise capital while keeping some semblance of control and remaining compliant with securities laws,” said Digital Arts Media Network CEO, Ajene Watson. “This is especially true as we have seen a surge in blockchain related projects and we want to position DATI at the forefront of a changing business landscape.”
Having the ability to appropriately leverage a FINRA member crowdfunding portal, gives DATI’s client-startups additional avenues to access capital, faster. The truCrowd portal can also offer an additional method to introduce a company and its products to their marketplace. By adding the truCrowd platform to DATI’s service offerings, the Company can further its initiative to offer private, high-growth/high-valued, high-tech startup opportunities that would normally not be available to microcap and non-accredited investors. DATI also helps angel investors to more effectively participate in the crowdfunding process through Angels+; receiving the benefits of early liquidity without giving up any equity in their private investment.
Mr. Watson concluded, “truCrowd not only strengthens our ability to offer traditional and accelerated capital formation solutions in our end-to-end service offerings but will improve the way we onboard and seek to initially fund client-startups, market and test a company’s market acceptance, and support the launch of properly developed blockchain related projects.”
It is important to note, the parties to the transaction are requesting comments from truCrowd’s regulatory body prior to consummating the transaction. Accordingly, the parties may be required to eliminate or modify some of the provisions of the transaction prior to the final closing.
ABOUT Digital Arts Media Network, Inc.
Digital Arts Media Network, Inc. (OTCMKTS: DATI) is the first company to utilize the Public Accelerator-Incubator (PAI) model, with the intent to follow the global success of accelerators and incubators around the world, adding niche opportunities to both the microcap and startup communities. As a PAI, Digital Arts Media Network will develop and acquire innovations that solve problems through digital platforms and other electronic applications.
ABOUT TruCrowd, Inc. (owner and operator of truCrowd.com)
Located in the heart of the financial district of downtown Chicago, truCrowd is a FINRA member equity crowdfunding portal operating under Regulation Crowdfunding (Title III of JOBS ACT); connecting startups and emerging businesses with non-accredited and accredited investors. Built on the belief that not all businesses and investors are alike, we pride ourselves on delivering a personalized and professional funding experience through industry-leading technology.
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company’s actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as “believes,” “belief,” “expects,” “expect,” “intends,” “intend,” “anticipate,” “anticipates,” “plans,” “plan,” to be uncertain and forward-looking.
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This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
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