CMG Holdings Group Announces Progress On Share Buyback, Arbitration Filing and Tender Offer
January 06 2020 - 10:30AM
InvestorsHub NewsWire
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.
Disclosure
Statement
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.
Contact
Glenn Laken
CEO
CMG Holdings Group, Inc.
(773) 770-3440
glennbrlaken@gmail.com
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