DigitalAMN Extinguishes Close to 45% of Remaining Convertible Notes

Rhea-AI Summary

Digital Asset Monetary Network (OTCMKTS: DATI) announced a significant reduction of its convertible debt by approximately 45%, equating to $387,000. This reduction represents a total debt decline of around 20%, leaving the company with $1.6 million in total debt, of which $483,933 is convertible. The CEO emphasized the company's commitment to raising non-toxic capital to support long-term growth, stating that insiders hold a considerable portion of the remaining debt. This strategic move supports the company’s goal of enhancing shareholder confidence.

Positive

• Reduced convertible debt by approximately 45% ($387,000), resulting in total debt decrease of 20%.
• Only $483,933 of convertible debt remains, fixed at a minimum conversion price of $0.35, minimizing potential dilution.
• Majority of debt is held by insiders, indicating confidence from management.

Negative

• Still has over $1.6 million in total debt, which may pose financial strain.
• Convertible debt is a potential risk as it could dilute share value if converted.

Eliminating Convertible Notes Helps to Reduce Overall Debt Obligations By Approximately 20%

NEW YORK, Jan. 27, 2022 (GLOBE NEWSWIRE) -- Digital Asset Monetary Network, Inc. (“DigitalAMN” or the “Company”) (OTCMKTS: DATI), a Public Accelerator-Incubator (“PAI”), announced today, that DigitalAMN kicked off the year by eliminating roughly 45% ($387,000) of the Company’s remaining convertible debt. This equates to an overall debt reduction of approximately 20%.

“As of now, we have $483,933 of convertible debt remaining, all fixed at a minimum conversion price of $0.35 (the “Floor Price”),” stated Ajene Watson, CEO of Digital Asset Monetary Network. “Creating an environment conducive to a substantive capital raise has long been the goal of reducing the Company’s debt and implementing methods that would stave off toxic dilution. And now that all the key operational elements are in place to support the Company’s capital raise, we’ll look to raise money in a way that supports the long-term confidence and longevity of our shareholders.”

Bringing the current debt reduction into view, as of the 3^rd QT of 2021, the Company’s principal debt obligations totaled $1,968,393, roughly 44% ($870,933) of which was attributed to convertible debt, all adhering to the Floor Price. After extinguishing $387,000 of convertible debt, going into the 4^th QT of 2021, the Company was left with $1.6M+ in total debt, with $483,933 of it being convertible debt adhering to the Floor Price. Roughly 49% of this convertible debt is held by the Company’s insiders and/or its management team. Further, nearly 70% ($1.1M+) of the remaining $1.6M+ of total debt is classified as non-convertible debt. Roughly 53% of this non-convertible debt is also held by the Company’s insiders and/or its management team.

Watson concluded, “As we continue to execute on our business model, we will be intently focused on raising long-term, non-toxic capital. We believe that the Company is well situated to do so, as our cap table and current debt obligations (both in amount and the minimal dilutive impact), speak to DigitalAMN’s core values, discipline and long-term viability.”

During the 4^th QT of 2021, DigitalAMN received capital infusions to assist with the Company’s investment obligations to Dot Hip Hop, LLC, which acquired the rights to the Generic Top Level Domain (gTLD)—.hiphop. This money was raised in the form of non-convertible notes, with most of the investment once again coming from the Company’s insiders and/or its management team.

For more information, please visit www.DigitalAMN.com.

ABOUT Digital Asset Monetary Network, Inc.

Digital Asset Monetary Network, Inc. (OTCMKTS: DATI) uses the Public Accelerator-Incubator (PAI) model with the intention of following the global success of accelerators and incubators around the world, adding niche opportunities to both the microcap and startup communities. As a PAI, Digital Asset Monetary Network will develop and acquire innovations that solve problems through digital platforms and other electronic applications.

Twitter: https://twitter.com/OTC_DATI
LinkedIn: https://www.linkedin.com/company/digitalamn/
Instagram: https://www.instagram.com/digitalamn/
Facebook: https://www.facebook.com/DigitalAssetMonetaryNetwork/

For investor and general information, please email info@DigitalAMN.com.

Forward Looking Statements

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. No information in this press release should be construed as any indication whatsoever of our future revenues, stock price, results of operations, or whether the Company will have a successful capital raise.

Further, final transfer and assignment of the .hiphop gTLD referenced above, is subject to ICANN’s consent; as such, no information contained herein should be construed as any indication that the acquisition of the gTLD by Dot Hip Hop, LLC discussed is complete or final.

Contact:
Public Relations Answering Center
(718) 285-6378 EXT 401
info@DigitalAMN.com

FAQ

What recent financial move did Digital Asset Monetary Network (DATI) announce?

Digital Asset Monetary Network announced the elimination of approximately 45% ($387,000) of its convertible debt.

How much total debt does Digital Asset Monetary Network currently have?

The company currently has over $1.6 million in total debt after reducing its convertible debt.

What is the remaining convertible debt for DATI after the recent reduction?

Digital Asset Monetary Network has $483,933 remaining in convertible debt, with a fixed minimum conversion price of $0.35.

What does the recent debt reduction mean for DATI shareholders?

The reduction supports a more favorable capital-raising environment and aims to boost shareholder confidence.

Is insider ownership significant in Digital Asset Monetary Network's debt?

Yes, a considerable portion of the remaining convertible and non-convertible debt is held by the company's insiders.