Welcome to DigitalTown
We’ve been quiet for a while, working through some financial and operational challenges. The company has new leadership with a mandate to get the house back in order, and our intention is to do that with the input and support of all stakeholders. We believe in a transparent approach, which may mean sharing some hard truths about the company’s past and what will be required to get Digitaltown on track.
We inherited a company that is mildly valuable, that is, a public company shell without a viable business plan. Since Fall 2018, the company has used expensive convertible debt to fund its operations, and we are now seeing the effects of inadequately managing the convertible lenders; significant dilution and a deteriorating stock price. We continue to utilize these credit facilities to pay our auditors, lawyers, insurers and transfer agents in an effort to keep the company’s SEC compliance intact. These facilities are expensive, and paid with the company’s only currency; its stock. The new leadership team have long-standing relationships with the convertible lenders, and with their cooperation, are working closely to soften the impact as much as possible. But the reality of the situation is the dilution will continue until all convertible debt has been eliminated.
The company has a significant volume of debt outside of the convertible debt mentioned above, as well as an outstanding lawsuit. The last filed 8-K, and the upcoming 10-K filing, provide the details of this debt. We are working with all debtors to settle their outstanding debt in exchange for stock. All debt, including the lawsuit, must be settled before we can successfully fold in high ROI opportunities. We are in the process of contacting all affected parties individually to make settlement arrangements.
We are often asked to provide Digitaltown’s share structure. Our transfer agents, ClearTrust, regularly update this information on the otcmarket.com website, which you can view here.
To recap our mandate:
Priority 1: ensure the company remains SEC compliant
Priority 2: clean up the balance sheet, including settling the lawsuit and all debt
Once we have completed the above, and only then, can we explore new avenues using the clean company shell to fund high ROI opportunities. Without the support of all debtors, the only alternative is bankruptcy. Of course, our strong preference would be for all stakeholders to support our efforts and get a small percentage of something valuable than 100% of nothing.
We understand that some of you are waiting to hear from us regarding refunds for CityShares and SmartWallet balances, and we ask for your patience as we work our way through the process. Our focus right now is to ensure timely communications with our stakeholders and devise a plan of action for moving forward.
At this moment in time, the future is not set in stone. We’re making decisions as we go, based on data and logic. As soon as we know more, you’ll know more. In the meantime, we thank you for your continued support and patience and we invite you to stay tuned to our social media and news section, where all updates will be announced. If you have any questions, please submit them under Contact Us, and we will respond in a timely manner.
The DigitalTown Team