NEW YORK, Feb. 21, 2012 /PRNewswire/ -- The Board of
Directors of RTG Ventures (OTCQB:RTGV) has been in negotiations to
restructure its remaining short-term debt subject to equity
conversion to ensure a six-month hiatus from the debt conversion
which has been taking place since mid-September. The new
contractual terms will contain that provision. The Company's intent
is to pay the debt in full, in cash, on or before the six-months
forward due date. This intended action replicates the Company's
strategy as one of the short-term financing tactics utilized during
its first year of operation. In fact, payment of RTG's first
six-month debenture incurred in September, 2010, and was fully
repaid in cash in March, 2011.
The new arrangement is a milestone for RTG, as it was the last
vestige of the "perfect storm" which took place early last Fall and
which the Company had no ability to control or stop at the time.
For the benefit of new investors, a bit of historic perspective: In
August, the Company embarked upon the first leg of an Awareness
Program which ran for the month with the anticipation that
CloudChannelLive would be ready to launch coincident with a
celebrity endorsement and long-term financing. The Awareness
Program was undertaken as part of a long term campaign intended to
broaden the shareholder group to include more value-based,
long-term investors. An Awareness Program was selected as a better
option than a Share Buyback Program considered earlier as its
impact would be more positive and longer lasting. The strategy was
well-thought-out but unforeseen delays took place with the
outsourced technology development, the result of which required the
Board to totally reassess the way forward. A decision was made to
focus on Digital Clarity, which emerged from the first year of
operations as cash flow-positive, to include new, short-term
revenue generation concurrent with bringing all technology
development in-house under the aegis of Reggie James and his technology team.
Therefore, in the space of a week, the CEO left the Company, the
product was delayed and being reassessed in-house, the long-term
funding was no longer available, and the second in a series of five
convertible debentures was due. For the next five months, until
now, the Company has been positioning itself to build on the
formidable presence of Digital Clarity and create a streamlined
version of the Cloud Channel proposition, while identifying
pragmatic revenue streams, with technology development around the
core and vision of Pulse Station. Pulse Station will incorporate
aspects of Cloud Channel while enhancing Digital Clarity's offering
in social media. Potential partners and clients to whom the
"pivoted" product was discussed last November saw Digital Clarity
as being First Mover with a differentiating product and services
offering. In a recent New York
Times article entitled "In Tech, Starting Up By
Failing," the comment was made: "To pivot is, essentially, to fail
gracefully. While the term has been in the start-up lexicon for
decades, it is coming up more often in the current internet boom,
as entrepreneurs find that many investors are willing to keep the
money flowing even if a start-up takes a hard left turn. 'Ideas are
like lightning in a bottle; if a company is small enough and didn't
capture lightning on the first try, it makes sense to try again.
The art of the pivot is to do it fast and early. The older and
bigger the business, the harder it is to change direction.'
--comments from one of the founders of formidable venture capital
firm Andreessen Horowitz." It has been a painful, but enlightening
journey. RTG's Board is counting on a bright future; however,
because structurally, RTG now has a very low debt position, with
only friendly financing in place and business-wise, it is now in
the right place at the right time.
Now that the restructuring of debt is in hand, James and Perry
are prepared to begin to release additional internal and external
developments through press releases over the next few days and
weeks.
About RTG Ventures
RTG Ventures offers Music & Entertainment Technology
Solutions and Digital Marketing Services. Harnessing the strength
of its digital marketing agency, that has a trusted reputation over
the last 8 years, the company has applied its knowledge process in
developing cutting edge technology platforms for web, mobile and
tablet devices.
Using Digital Clarity's application in the Marketing and Social
arena, RTG Ventures offers a unique value proposition of
intelligent, analytics based technology solutions with the support
of an experienced digital marketing team. RTG Ventures, Inc. is an
OTC:QB company. Symbol RTGV.
Safe Harbor Provisions
The foregoing contains certain predictive statements that relate
to future events or future business and financial performance. Such
statements can only be predictions, and the actual events or
results may differ from those discussed due to, among other things,
those risks described in RTGV's reports filed with the SEC.
Opinions expressed herein are subject to change without notice.
This document is published solely for information purposes, and is
not to be construed as an offer to sell or the solicitation of an
offer to buy any securities in any state. Past performance does not
guarantee future performance. Additional information is available
upon request.
Investor Relations Contact Information
David Marioni
First State Internet Services
Wilmington, DE 19804
Tel: 302-983-8196
SOURCE RTG Ventures