CBMJ Sells E-Commerce Business for $1,247,000 and Retires 59.76 Million Shares; Increases Profitability While Reducing Operating Expenses

Rhea-AI Summary

Conservative Broadcast Media & Journalism (CBMJ) announced the sale of its E-Commerce business for $1.247 million to Stonewall Enterprises, including $120,000 in cash and $380,000 in notes. The deal also involves returning 59,760,000 shares to treasury, valued at $747,000. This strategic move allows CBMJ to focus on high-margin businesses like media and web development, aiming to reduce operating expenses and achieve positive cash flow. Post-transaction, the issued shares stand at 359.4 million.

Positive

• Strategic exit from the low-margin e-commerce business to focus on higher-margin operations.
• Significant reduction in outstanding shares to 359.4 million, which may enhance shareholder value.
• Potentially positive cash flow trajectory following the sale.

Negative

• None.

POWDER SPRINGS, GA, July 11, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Conservative Broadcast Media & Journalism “CBMJ” (OTC:CBMJ) announces  the closing of an Asset Sale of its E-Commerce business for $1.247M to Stonewall Enterprises, Inc. a Nevada Corporation.

The transaction is valued at $1,247,000 including $120,000 in cash, $380,000 in notes and installment payments over the next two years, along with the transfer of certain liabilities. In addition, 59,760,000 shares of stock valued at $747,000 previously owned by former DeDonato President and current Stonewall Enterprises CEO Brandon Vallorani which will be returned to treasury.     

The e-commerce business sold had previously been consolidated and operates primarily through the website www.patriotdepot.com and other feeder websites and customer lists. Patriot Depot is an online retailer that distributes and sells Conservative and Christian themed supplies, apparel, pins, flags, patriotic gifts, glasses, novelties, books, DVDs and more.  Patriot Depot was acquired by CBMJ mid-2021. Also included in the sale was a brick-and-mortar coffee shop in Hiram, GA, and e-commerce website www.thrashercoffee.com/ . 

The company will retain its flagship news website www.flagandcross.com along with its client services business, data base management including email list rentals, web development, and consulting businesses.

Commenting on the transaction, CBMJ CEO Mark Schaftlein stated the following: "We are very pleased with consummating this transaction.  Exiting the retail sales e-commerce business will allow us to focus our efforts toward higher margin business in media, web hosting, web development, and data base management.  It also positions the company to significantly reduce operating expenses and move toward positive cash flow businesses. With the share reduction, the Issued and Outstanding share count has been reduced to 359.4M including a float of 92.7M.” 

In two smaller transactions last month, the company sold its cigar business Vallorini Cigars ww.valloranicigars.com and the domain  http://constitution.com/ . 

About DeDonato Enterprises : DeDonato Enterprises, L.L.C. is a Digital Media Company based in Metro-Atlanta that specializes in reaching a conservative/libertarian/religious audience along with its client services business, data base management including email list rentals, web development, and consulting businesses.  DeDonato was acquired by CBMJ in October of 2020. 

About CBMJ: (CBMJ) Conservative Broadcast Media and Journalism is a Digital Media Company based in Metro-Atlanta that specializes in reaching a conservative/libertarian/religious audience.  CBMJ owns an active database of over 20 million email subscribers, and publishes the marquis monetized political/news website www.flagandcross.com . CBMJ also distributes the increasingly popular TV, radio, and social media segment "The Schaftlein Report" hosted by economic analyst, political commentator Mark Schaftlein. https://schaftleinreport.com/ .

Forward-Looking Statements: This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters disclosed at www.otcmarkets.com . These risks and uncertainties could cause the company's actual results to differ materially.

Conservative Broadcast Media & Journalism
Mark Schaftlein
877-704-6773

FAQ

What was the value of the asset sale by CBMJ?

CBMJ sold its E-Commerce business for $1.247 million.

How did the asset sale affect CBMJ's outstanding shares?

The asset sale reduced CBMJ's issued and outstanding shares to 359.4 million.

What are the components of the sale value for CBMJ?

The sale includes $120,000 in cash, $380,000 in notes, and 59.76 million shares valued at $747,000.

What will CBMJ focus on after the sale of its E-Commerce business?

CBMJ will focus on higher-margin businesses such as media, web hosting, and data management.