CMG Holdings Group Announces Progress On Share Buyback, Arbitration Filing and Tender Offer
Chicago, IL -- January 6, 2020 -- InvestorsHub NewsWire -- Pursuant to the share buy-back approved by the Company's Board of Directors on June 10, 2019, CMG Holdings Group, Inc. announces the purchase of 3.3 million shares in the open market at an average price of .0063. The company continues to believe these shares are significantly underpriced. As long as this situation persists, we will continue to exercise our ability to return shares to the Treasury. To date, the company has purchased over 6.4 million shares. CMG's CEO Glenn Laken said, "I believe the shares of CMGO represent a real value play for investors with a short- to medium-term time horizon. Accordingly, I have personally purchased 2.1 million shares in the open market."
Laken added, "On Friday January 3rd, CMG filed an arbitration proceeding against our former auditors for gross malpractice. If CMG prevails with these claims, as we expect we will, the company has the potential to collect another significant judgEment."
In other news, Laken announced the extension of the tender offer for 38.5 million restricted shares for an additional 45 days, stating, "We mailed the initial offer during the holiday season and were disappointed with the percentage of responses. I have hired a mailing company to take care of the second iteration of this offer. Each offer letter has been registered and must be signed for. Each document can be tracked so we'll know they've been delivered. We will get a very accurate read on this shortly and I will report back."
As tweeted earlier concerning the manipulation of CMGO shares, we have received an initial response from our attorneys. They discovered a pattern of manipulation they believe is being perpetrated by at least two shareholders of CMG. Manipulative selling depresses the price of the stock and is unlawful. Counsel has advised the appropriate market makers of this activity and has also issued Cease and Desist letters to the shareholders in question. This is the first revelatory information to come back; our attorneys are continuing to look at patterns and may have additional information in the near future. We intend to continue our efforts to protect the orderly market for our stock. If our efforts to end this behavior are not successful, we will not hesitate to take the issue to the next level and will keep shareholders apprised.
Laken added, "CMG's subsidiary XA has a number of meetings set up for the first few weeks of this month with established clients and a number of potential new ones. XA will begin to schedule work for the first two quarters of the year shortly. Once we have a solid handle on XA revenue going forward I will share that with shareholders as well."
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc. is a Chicago holding company whose primary operating subsidiary is XA – The Experiential Agency, Inc. (http://www.experientialagency.com) - which engages in the alternative advertising, digital media, experiential and interactive marketing, and entertainment sectors. XA is involved in production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. The business also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks to design and develop individual broadcasting digital media channels to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. XA serves clients across the marketing communication industry. Separately, CMG Holdings Group owns Lincoln Acquisition Corp., a subsidiary formed to manage its portfolio investments.
Statements in this press release about our future expectations, including without limitation, the likelihood that CMG Holdings Group, Inc. will meet minimum sales expectations, be successful and profitable, bring significant value to its stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. CMG's business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing and materially decreases its convertible debt. No information in this press release should be construed in any form shape or manner as an indication of the Company's future revenues, financial condition or stock price.
CMG Holdings Group, Inc.