Filed Pursuant to Rule 424(b)(3)
Registration No. 333-217157
PROSPECTUS
8,055,490
Shares of Common Stock
This
prospectus relates to an aggregate of
8,055,490
shares of
our common stock, $0.0001 par value (the “Common Stock”), that may be resold from time to time by the selling stockholders
named in this prospectus (each a “Selling Stockholder,” collectively, the “Selling Stockholders”). The
registration of the offer and sale of the securities covered by this prospectus does not necessarily mean that any of the securities
will be offered or sold by the Selling Stockholders.
We
will receive no proceeds from any sale or disposition of securities registered hereunder that are sold by the Selling Stockholders,
or interests therein, but we have agreed to pay certain registration expenses.
The
Selling Stockholders may offer the securities, from time to time, as they may determine directly or through underwriters, broker-dealers
or agents and in one or more public or private transactions, on or off the Nasdaq Capital Market, and at fixed prices, prevailing
market prices, at prices related to prevailing market prices or at negotiated prices. If these securities are sold through underwriters,
broker-dealers or agents, the Selling Stockholders will be responsible for underwriting discounts or commissions or agents’
commissions. See “Plan of Distribution.”
Certain
of the Selling Stockholders are parties to lock-up agreements prohibiting the sale of their shares until September 6, 2017. See
“Selling Stockholders.”
Our
Common Stock is traded on the NASDAQ Capital Market under the symbol “DGLT.” On May 2, 2017, the closing price
of our Common Stock as reported on the NASDAQ Capital Market was $3.50 per share.
Investing
in our securities involves risks. You should consider carefully the risks and uncertainties set forth in the section entitled
“Risk Factors” beginning on page 3 of this prospectus and in the documents we file with the Securities and Exchange
Commission that are incorporated by reference in this prospectus before making a decision to purchase our securities.
NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The
date of this prospectus is May 2, 2017.
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus provides you with a general description of the respective securities that the Selling Stockholders may offer. The information
in this prospectus is not complete and is subject to change. The prospectus supplement may add, update or change information contained
in this prospectus. To the extent that any statement that we make in a prospectus supplement is inconsistent with statements made
in this prospectus, the statements made in this prospectus will be deemed modified or superseded by those made in the prospectus
supplement. You should read both this prospectus and any prospectus supplement, including all documents incorporated herein or
therein by reference, together with additional information described under “Where You Can Find More Information” and
“Incorporation of Documents by Reference.”
Neither
we, nor the Selling Stockholders, have authorized any dealer, salesman or other person to give any information or to make any
representation other than those contained or incorporated by reference in this prospectus and the accompanying prospectus supplement.
You must not rely upon any information or representation not contained or incorporated by reference in this prospectus or the
accompanying prospectus supplement. We take no responsibility for, and can provide no assurance as to the reliability of, any
other information that others may give you. This prospectus and the accompanying prospectus supplement do not constitute an offer
to sell or the solicitation of an offer to buy any securities other than the registered securities to which they relate, nor do
this prospectus and the accompanying prospectus supplement constitute an offer to sell or the solicitation of an offer to buy
securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. You
should not assume that the information contained in this prospectus and the accompanying prospectus supplement is accurate on
any date subsequent to the date set forth on the front of the document or that any information we have incorporated by reference
is correct on any date subsequent to the date of the document incorporated by reference, even though this prospectus and any accompanying
prospectus supplement is delivered or securities are sold on a later date.
Unless
otherwise indicated or unless the context requires otherwise, all references in this prospectus to “we,” “us,”
“our,” the “Company,” or similar references mean Digiliti Money Group, Inc. and our subsidiary,
Digiliti Money, Inc. (a Minnesota corporation), on a consolidated basis.
All
references in this prospectus to “$,” “U.S. Dollars” and “dollars” are to United States dollars.
This
prospectus contains summaries of certain other documents, which summaries contain all material terms of the relevant documents
and are believed to be accurate, but reference is hereby made to the full text of the actual documents for complete information
concerning the rights and obligations of the parties thereto.
DIGILITI
MONEY GROUP, INC.
We
are a leading provider of software-as-a-service, or SaaS, financial technology, or fintech, solutions to the financial services
industry. We provide traditional financial institutions and alternative financial service, or AFS, providers with innovative mobile
and other solutions to enable them to offer a suite of leading-edge mobile financial services to their customers through the Internet,
or cloud-based, access. As a SaaS provider, we develop, host and maintain software solutions that we license to our clients. We
serve three primary markets in the United States: banks, credit unions and AFS providers, which includes providers of non-traditional
banking services such as reloadable prepaid cards and check cashing services.
Our
business operations are conducted entirely through our wholly-owned subsidiary, Digiliti Money, Inc., a Minnesota corporation.
We were incorporated in Delaware in February 2010 and we acquired the business of our subsidiary in February 2014.
Our corporate headquarters and principal executive offices are located at 18671 Lake Drive East, dellFive Business Park G, Minneapolis,
MN 55317. Our telephone number is (952) 698-6980.
RISK
FACTORS
Our
business is subject to uncertainties and risks and an investment in our securities involves a high degree of risk. You should
carefully consider and evaluate all of the information included and incorporated by reference in this prospectus, including the
risk factors incorporated by reference from our most recent annual report on Form 10–K, as updated by our subsequent quarterly
reports on Form 10–Q and other filings we make with the Securities and Exchange Commission (the “SEC”). It is
possible that our business, financial condition, liquidity or results of operations could be materially adversely affected by
any of these risks. You should also carefully read and consider the risks and other information that may be contained in any prospectus
supplement accompanying this prospectus before deciding whether to purchase any securities that may be offered by the Selling
Stockholders. See also “Cautionary Statement Regarding Forward-Looking Statements” in this prospectus.
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus and the documents incorporated by reference may contain forward-looking statements with respect to the financial condition,
results of operations, plans, objectives, future performance and business of Digiliti Money Group, Inc. Statements preceded
by, followed by or that include words such as “may,” “will,” “expect,” “anticipate,”
“continue,” “estimate,” “project,” “believes” or similar expressions are intended
to identify some of the forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995
and are included, along with this statement, for purposes of complying with the safe harbor provisions of that Act. These forward-looking
statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking
statements due to, among others, the risks and uncertainties described in this prospectus, including under “Risk Factors,”
and the documents incorporated by reference in this prospectus. Any forward-looking statement contained in this prospectus and
the documents incorporated by reference speaks only as of the date on which the statement is made, and Digiliti Money Group,
Inc. undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur
after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time
to time, and it is not possible for Digiliti Money Group, Inc. to predict all of the factors, nor can Digiliti Money
Group, Inc. assess the effect of each factor on its business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any forward-looking statement.
USE
OF PROCEEDS
The
shares of Common Stock being offered hereby are for the account of the Selling Stockholders. Accordingly, we will not receive
any of the proceeds from the resale of shares of Common Stock by the Selling Stockholders.
To
the extent we receive proceeds from the cash exercise of outstanding warrants, we intend to use the proceeds for working capital
and other general corporate purposes.
SELLING
STOCKHOLDERS
This
prospectus covers an aggregate of 8,055,490 shares of our Common Stock, consisting of (i) 5,515,236 outstanding shares
of Common Stock held by certain of the Selling Stockholders and (ii) 2,540,254 shares of Common Stock issuable upon the
exercise of outstanding warrants held by certain of the Selling Stockholders.
The
table below sets forth information concerning the resale of shares of Common Stock by the Selling Stockholders. The Selling
Stockholders acquired our securities in private placement transactions. The total number of shares of Common Stock sold under
this prospectus may be adjusted to reflect adjustments due to stock dividends, stock distributions, splits, combinations or recapitalizations
with regard to the Common Stock, convertible notes and warrants. To our knowledge, no Selling Stockholder, nor any affiliate of
such Selling Stockholder has held any position or office with us during the three years prior to the date of this prospectus,
except two of our directors, Michael J. Hanson and James L. Davis, one of our executive officers, Lawrence C. Blaney, and Davis
& Associates, Inc. 401K Profit Sharing Plan (which is an affiliate of Mr. Davis).
With
respect to shares of Common Stock issuable upon exercise of warrants, the Selling Stockholders may exercise such warrants at any
time in their sole discretion.
Set
forth below is the name of each Selling Stockholder and the amount and percentage of Common Stock owned by each (including shares
which a stockholder has the right to acquire within 60 days, including upon exercise of options, warrants and convertible notes)
prior to the offering, the shares to be sold in the offering, and the amount and percentage of Common Stock to be owned by each
(including shares which a stockholder has the right to acquire within 60 days, including upon exercise of options or warrants)
after the offering assuming all shares are sold. The footnotes provide information about persons who are subject to lock-up restrictions
with respect to the offer and sale of shares of our Common Stock
The
following table is based on information provided to us by the Selling Stockholders and is as of March 31, 2017. The Selling Stockholders
may sell all or some of the shares of Common Stock they are offering, and may sell, unless indicated otherwise in the footnotes
below, shares of our Common Stock otherwise than pursuant to this prospectus. The tables below assume that each Selling Stockholder
sells all of the shares offered by it in offerings pursuant to this prospectus, and does not acquire any additional shares. We
are unable to determine the exact number of shares that will actually be sold or when or if these sales will occur.
Name of Selling Stockholder
|
|
Number of Common
Shares Beneficially
Owned Prior to
the Offering
|
|
Number of
Common
Shares Sold
Pursuant to
this Prospectus
|
|
|
Number of
Common
Shares
Beneficially
Owned After
the Offering
|
|
|
%
of
Common
Shares
Beneficially
Owned After
the Offering(11)
|
|
ALB Private Investments, LLC
|
|
|
62,133
|
|
|
38,796
|
|
|
|
23,337
|
|
|
|
*
|
|
Alice Ann Corporation
|
|
|
19,295
|
|
|
19,295
|
|
|
|
-
|
|
|
|
*
|
|
Anglian Holdings
|
|
|
209,421
|
|
|
209,421
|
|
|
|
-
|
|
|
|
*
|
|
Anthony Low-Beer
|
|
|
54,343
|
|
|
43,231
|
|
|
|
11,112
|
|
|
|
*
|
|
Aracle SPF IV, LLC
|
|
|
103,035
|
|
|
103,035
|
|
|
|
-
|
|
|
|
*
|
|
Brett Nesland
|
|
|
41,886
|
|
|
41,886
|
|
|
|
-
|
|
|
|
*
|
|
Brian and Suzanne Swift Living Trust
|
|
|
10,472
|
|
|
10,472
|
|
|
|
-
|
|
|
|
*
|
|
Casilli Revocable Trust
|
|
|
21,336
|
|
|
21,336
|
|
|
|
-
|
|
|
|
*
|
|
Christopher Thunen
|
|
|
5,834
|
|
|
4,325
|
|
|
|
1,509
|
|
|
|
*
|
|
Cold Springs Investing, LLC
|
|
|
32,888
|
|
|
21,620
|
|
|
|
11,268
|
|
|
|
*
|
|
Columbus Capital Partners, L.P.(1)
|
|
|
730,487
|
|
|
730,487
|
|
|
|
-
|
|
|
|
*
|
|
Columbus Capital QP Partners, L.P.(2)
|
|
|
172,003
|
|
|
172,003
|
|
|
|
-
|
|
|
|
*
|
|
Cross River Partners LP(3)
|
|
|
837,681
|
|
|
837,681
|
|
|
|
-
|
|
|
|
*
|
|
David Boehnen
|
|
|
146,584
|
|
|
140,894
|
|
|
|
5,690
|
|
|
|
*
|
|
David Tsung-Tang Chang
|
|
|
87,757
|
|
|
87,757
|
|
|
|
-
|
|
|
|
*
|
|
Davis & Associates, Inc. 401K Profit Sharing Plan(4)
|
|
|
74,222
|
|
|
68,620
|
|
|
|
5,602
|
|
|
|
*
|
|
Douglas Thunen
|
|
|
4,350
|
|
|
3,460
|
|
|
|
890
|
|
|
|
*
|
|
Edward Nersessian PSP
|
|
|
15,196
|
|
|
12,973
|
|
|
|
2,223
|
|
|
|
*
|
|
First Fire Global Opportunities Fund, LLC
|
|
|
59,407
|
|
|
59,407
|
|
|
|
-
|
|
|
|
*
|
|
FLMM Ltd.(5)
|
|
|
1,235,763
|
|
|
1,062,121
|
|
|
|
173,642
|
|
|
|
1.3
|
%
|
Trooien Capital, LLC
|
|
|
565,435
|
|
|
463,054
|
|
|
|
102,381
|
|
|
|
*
|
|
Helen Esposito
|
|
|
15,196
|
|
|
12,973
|
|
|
|
2,223
|
|
|
|
*
|
|
Howard Miller
|
|
|
20,944
|
|
|
20,944
|
|
|
|
-
|
|
|
|
*
|
|
Intracoastal Capital LLC
|
|
|
11,448
|
|
|
11,448
|
|
|
|
-
|
|
|
|
*
|
|
James L. Davis(6)
|
|
|
1,283,489
|
|
|
995,764
|
|
|
|
287,725
|
|
|
|
2.2
|
%
|
James Mazzo Jr
|
|
|
15,338
|
|
|
11,448
|
|
|
|
3,890
|
|
|
|
*
|
|
John Low-Beer
|
|
|
12,589
|
|
|
10,811
|
|
|
|
1,778
|
|
|
|
*
|
|
Jon D. & Linda W. Gruber Trust(7)
|
|
|
625,391
|
|
|
438,286
|
|
|
|
187,105
|
|
|
|
1.4
|
%
|
Joseph W. & Patricia G. Abrams Family Trust
|
|
|
10,668
|
|
|
10,668
|
|
|
|
-
|
|
|
|
*
|
|
K. H. Wm Krueger
|
|
|
19,203
|
|
|
19,203
|
|
|
|
-
|
|
|
|
*
|
|
Lake Street Capital, LLC
|
|
|
10,631
|
|
|
10,631
|
|
|
|
-
|
|
|
|
*
|
|
Lawrence Blaney(8)
|
|
|
32,147
|
|
|
11,640
|
|
|
|
20,507
|
|
|
|
*
|
|
Lincoln Park Capital Fund, LLC
|
|
|
245,438
|
|
|
106,717
|
|
|
|
138,721
|
|
|
|
1.1
|
%
|
London Family Trust
|
|
|
125,654
|
|
|
125,654
|
|
|
|
-
|
|
|
|
*
|
|
Maida Chicon
|
|
|
9,761
|
|
|
8,649
|
|
|
|
1,112
|
|
|
|
*
|
|
Michael J. Hanson(9)
|
|
|
1,565,346
|
|
|
1,422,736
|
|
|
|
142,610
|
|
|
|
1.1
|
%
|
Phylis Esposito
|
|
|
30,390
|
|
|
25,945
|
|
|
|
4,445
|
|
|
|
*
|
|
Pinnacle 18, LLLP
|
|
|
5,512
|
|
|
4,325
|
|
|
|
1,187
|
|
|
|
*
|
|
Robert G. Allison
|
|
|
19,295
|
|
|
19,295
|
|
|
|
-
|
|
|
|
*
|
|
Rosen Investment Fund, LLC
|
|
|
4,325
|
|
|
4,325
|
|
|
|
-
|
|
|
|
*
|
|
Roy and Ruth Rogers Unitrust UAD 09/28/89
|
|
|
41,886
|
|
|
41,886
|
|
|
|
-
|
|
|
|
*
|
|
Sydne and Allan Bortel Living Trust
|
|
|
62,830
|
|
|
62,830
|
|
|
|
-
|
|
|
|
*
|
|
The Gilbert Matthews Family Trust UAD 4/25/13
|
|
|
10,472
|
|
|
10,472
|
|
|
|
-
|
|
|
|
*
|
|
The Kingdom Trust Company Custodian FBO Menachem Kranz IRA
|
|
|
6,992
|
|
|
4,325
|
|
|
|
2,667
|
|
|
|
*
|
|
The Rogers Family Trust
|
|
|
83,770
|
|
|
83,770
|
|
|
|
-
|
|
|
|
*
|
|
Tiburon Opportunity Fund, LP(10)
|
|
|
450,546
|
|
|
317,522
|
|
|
|
133,024
|
|
|
|
1.0
|
%
|
Vikki Lansing Copley
|
|
|
47,576
|
|
|
41,886
|
|
|
|
5,690
|
|
|
|
*
|
|
Vista Partners LLC
|
|
|
92,753
|
|
|
46,308
|
|
|
|
46,445
|
|
|
|
*
|
|
Sylva International LLC
|
|
|
23,154
|
|
|
23,154
|
|
|
|
-
|
|
|
|
*
|
|
*
|
Represents beneficial ownership of less than
1% of our outstanding shares of Common Stock.
|
|
|
(1)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(2)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(3)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(4)
|
James
L. Davis, one of our directors, is the founder and president of the Selling Stockholder and has the power to vote or dispose
of the securities held of record. Mr. Davis is subject to a lock-up agreement prohibiting the sale of any Common Stock by
the Selling Stockholder until September 6, 2017.
|
|
|
(5)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(6)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(7)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(8)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(9)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(10)
|
The
Selling Stockholder is subject to a lock-up agreement prohibiting the sale of any Common Stock until September 6, 2017.
|
|
|
(11)
|
Percentage
ownership is based on a total of 13,202,457 shares of Common Stock beneficially owned as of March 31, 2017.
|
PLAN
OF DISTRIBUTION
We
are registering the resale of certain shares of Common Stock offered by this prospectus on behalf of the Selling Stockholders. As
used in this prospectus, the term “Selling Stockholders” includes donees, pledges, transferees and other successors
in interest selling shares received from the Selling Stockholders after the date of this prospectus, whether as a gift, pledge,
partnership distribution or other form of transfer. All costs, expenses and fees in connection with the registration of the shares
of Common Stock offered hereby will be borne by us. Brokerage commissions and similar selling expenses, if any, attributable to
the sale of shares of Common Stock will be borne by the Selling Stockholders.
As
of the date of this prospectus, our Common Stock is traded on the NASDAQ Capital Market. On May 2, 2017, the closing price
of our Common Stock as reported on the NASDAQ Capital Market was $3.50 per share, and as such represented the market price
for our Common Stock as of that date.
Sales
of shares of Common Stock offered hereby may be effected by the Selling Stockholders from time to time in one or more types of
transactions (which may include block transactions):
●
|
ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;
|
|
|
●
|
block
trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block
as principal to facilitate the transaction;
|
|
|
●
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;
|
|
|
●
|
an
exchange distribution in accordance with the rules of the applicable exchange;
|
|
|
●
|
privately
negotiated transactions;
|
|
|
●
|
short
sales;
|
|
|
●
|
through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
|
|
|
●
|
broker-dealers
may agree with the Selling Stockholder to sell a specified number of such shares at a stipulated price per share;
|
|
|
●
|
a
combination of any such methods of sale; and
|
|
|
●
|
any
other method permitted pursuant to applicable law.
|
The
Selling Stockholders may effect sales of shares of Common Stock offered hereby at fixed prices, at prevailing market prices at
the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at privately
negotiated prices. Any of these transactions may or may not involve brokers or dealers. Any such broker-dealers may receive compensation
in the form of discounts, concessions or commissions from the Selling Stockholders and/or the purchaser(s) of shares of Common
Stock for whom those broker-dealers may act as agents or to whom they sell as principals, or both (which compensation as to a
particular broker-dealer might be in excess of customary commissions). To our knowledge, the Selling Stockholders have not entered
into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of their securities,
nor is there any underwriter or coordinating broker acting in connection with the proposed sale of shares of Common Stock by the
Selling Stockholders. If we are notified by any Selling Stockholder that any material arrangement has been entered into with a
broker-dealer for the sale of shares of Common Stock, we will file a supplement to this prospectus, if required, pursuant to Rule
424(b) under the the Securities Act of 1933, as amended (the “Securities Act”). If the Selling Stockholders use this
prospectus for any sale of the shares of Common Stock, they will be subject to the prospectus delivery requirements of the Securities
Act.
The
Selling Stockholders may, from time to time, pledge or grant a security interest in some or all of the shares of Common Stock
owned by them and registered hereby and, if any such Selling Stockholder defaults in the performance of its secured obligations,
the pledgees or secured parties may offer and sell the shares of Common Stock, from time to time, under this prospectus, or under
an amendment to this prospectus or other applicable provision of the Securities Act, amending the list of Selling Stockholders
to include the pledgee, transferee or other successors in interest as Selling Stockholders under this prospectus. The Selling
Stockholders also may transfer the shares of Common Stock in other circumstances, in which case the transferees, pledgees or other
successors in interest will be the selling beneficial owners for purposes of this prospectus.
In
connection with the sale of our Common Stock or interests therein, the Selling Stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Stock in the course
of hedging the positions they assume. The Selling Stockholders may also sell shares of our Common Stock short and deliver these
securities to close out their short positions, or loan or pledge the Common Stock to broker-dealers that in turn may sell these
securities. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities, which require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).
The
aggregate proceeds to the Selling Stockholders from the sale of the Common Stock offered by them will be the purchase price of
the Common Stock less discounts or commissions, if any. The Selling Stockholders reserve the right to accept and, together with
their agents from time to time, to reject, in whole or in part, any proposed purchase of Common Stock to be made directly or through
agents. We will not receive any of the proceeds from this offering.
The
Selling Stockholders may in the future also resell all or a portion of the shares in open market transactions in reliance upon
Rule 144 under the Securities Act, including paragraph (i) of that rule, provided that they meet the criteria and conform to the
requirements of that rule.
The
Selling Stockholders and any broker-dealers that act in connection with the sale of securities might be deemed to be “underwriters”
within the meaning of Section 2(11) of the Securities Act, and any commissions received by such broker-dealers and any profit
on the resale of the securities sold by them while acting as principals might be deemed to be underwriting discounts or commissions
under the Securities Act. In addition, each broker-dealer selling under this prospectus for its own account or the account of
an affiliate is an “underwriter” under Section 2(11) of the Securities Act.
To
the extent required, the shares of our Common Stock to be sold, the name of the Selling Stockholders, the respective purchase
prices and public offering prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with
respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.
In
order to comply with the securities laws of some states, if applicable, the Common Stock may be sold in these jurisdictions only
through registered or licensed brokers or dealers. In addition, in some states the Common Stock may not be sold unless it has
been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied
with.
We
will make copies of this prospectus (as it may be supplemented or amended from time to time) available to the Selling Stockholders
for the purpose of satisfying the prospectus-delivery requirements of the Securities Act. The Selling Stockholders may indemnify
any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.
We
are required to pay all fees and expenses incident to the registration of the shares of Common Stock. We have agreed to indemnify
the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
We
are unable to predict with certainty the effect that sales of the shares of Common Stock offered by this prospectus might have
upon our ability to raise additional capital. Nevertheless, it is possible that the resale of shares offered hereby could adversely
affect the trading price of our Common Stock.
The
anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities
of the Selling Stockholders and their affiliates.
DETERMINATION
OF OFFERING PRICE
The
prices at which the shares of our Common Stock covered by this prospectus may actually be sold will be determined by the prevailing
public market price for shares of our Common Stock, by negotiations between the Selling Stockholders and buyers of our Common
Stock in private transactions or as otherwise described in “Plan of Distribution.”
VALIDITY
OF SECURITIES
The
validity of the securities offered by this prospectus will be passed upon for us by Dorsey & Whitney LLP.
EXPERTS
The
consolidated financial statements incorporated in this prospectus by reference from our Current Report on Form 8-K, filed with
the SEC on March 31, 2017, have been audited by Lurie, LLP, an independent registered public accounting firm, as stated in their
report which is incorporated herein by reference. Such consolidated financial statements have been so incorporated in reliance
upon that report of such firm given upon their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We
file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available
to the public through the Internet at the SEC’s web site at
www.sec.gov
. You may also read and copy any document
we file with the SEC at the SEC’s public reference room at 100 F Street N.E., Washington, D.C. 20549. Please call the SEC
at 1-800-SEC-0330 for further information about its public reference facilities and their copy charges.
We
have filed with the SEC a registration statement on Form S-3 under the Securities Act with respect to the securities offered by
this prospectus. When used in this prospectus, the term “registration statement” includes amendments to the registration
statement as well as the exhibits, schedules, financial statements and notes filed as part of the registration statement. This
prospectus, which constitutes a part of the registration statement, does not contain all of the information in the registration
statement. This prospectus omits information contained in the registration statement as permitted by the rules and regulations
of the SEC. For further information with respect to us and the Common Stock offered by this prospectus, reference is made to the
registration statement. Statements herein concerning the contents of any contract or other document are not necessarily complete
and in each instance reference is made to the copy of such contract or other document filed with the SEC as an exhibit to the
registration statement, each such statement being qualified by and subject to such reference in all respects.
INCORPORATION
OF DOCUMENTS BY REFERENCE
The
SEC allows us to incorporate by reference the information we file with them. This allows us to disclose important information
to you by referencing those filed documents. We have previously filed the following documents with the SEC and are incorporating
them by reference into this prospectus:
●
|
Annual
Report on Form 10-K for the year ended December 31, 2016;
|
|
|
●
|
Current
Reports on Form 8-K filed January 11, 2017, January 19, 2017, January 30, 2017, February 13, 2017, March 13, 2017, March 21,
2017, March 28, 2017, March 31, 2017, April 4, 2017, April 10, 2017, April 25, 2017 and May 2, 2017 and
|
|
|
●
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the
description of our Common Stock contained in any registration statement on Form 8-A that we have filed, and any amendment
or report filed for the purpose of updating this description.
|
We
also are incorporating by reference any future filings made by us with the SEC under Section 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934, as amended, after the date of this prospectus and prior to the expiration or termination of the
registration statement of which this prospectus is a part (other than portions of such documents that are not deemed “filed”
under the Exchange Act, in accordance with the Exchange Act and applicable SEC rules). The information contained in any such document
will be considered part of this prospectus from the date the document is filed with the SEC.
Any
statement made in a document incorporated by reference into this prospectus is deemed to be modified or superseded for purposes
of this prospectus to the extent that a statement in this prospectus or in any other subsequently filed document, which is also
incorporated by reference, modifies or supersedes such statement. Any statement made in this prospectus is deemed to be modified
or superseded to the extent a statement in any subsequently filed document, which is incorporated by reference into this prospectus,
modifies or supersedes such statement.
You
can obtain a copy of any documents which are incorporated by reference in this prospectus or prospectus supplement, except for
exhibits which are specifically incorporated by reference into those documents, at no cost, by writing or telephoning us at:
Digiliti
Money Group
, Inc.
Attention:
Secretary
18671
Lake Drive East
dellFive
Business Park G
Minneapolis,
MN 55317
Tel:
(952) 698-6980
8,055,490
Shares of Common Stock
PROSPECTUS
May
2, 2017