CORAL GABLES, Florida,
Sept. 29, 2020 /PRNewswire/
-- TCM|Strategic announced today it has agreed to acquire
$53.5 million of common and
convertible preferred equity in Digimarc Corporation (NASDAQ:
DMRC). For more details on the transaction, please see
today's press release from Digimarc.
TCM|Strategic's decision to make this investment was the result
of two conclusions:
- The Legacy Business and the Growth Business are each worth more
today than the current enterprise value of the entire company.
- The Growth Business has not only the opportunity but also the
high likelihood of being worth significantly more in the
future.
For those interested, this deck contains detailed work in
support of these points.
This financing provides Digimarc with enough capital to ensure
the continued acceleration of growth in the Barcode business.
Furthermore, it should be sufficient to fund the company through
profitability, even assuming the most conservative macro and micro
scenarios.
Therefore, we believe that the next time Digimarc accesses the
equity market, it will be to reduce – rather than
increase – shares outstanding.
As firm believers that no single group has a monopoly on good
ideas, we welcome communication with all Digimarc stakeholders as
we help guide the company toward the realization of this platform's
tremendous value. We can be reached via email at
digimarc@tcmstrategicllc.com.
Disclaimer
This press release contains forward-looking statements
(including within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended, and Section 27A of the
United States Securities Act of 1933, as amended), and any
statements other than statements of historical fact could be deemed
to be forward-looking statements. These forward-looking statements
include, among other things, statements regarding the expected
consummation of the proposed private placement of common and
preferred equity of Digimarc Corporation described herein, the
future business and financial performance of Digimarc and the
expected benefits of the proposed transaction and other statements
identified by words such as "will", "expect", "believe",
"anticipate", "estimate", "should", "could", "would", "may",
"intend", "plan", "potential", "target", "predict", "project",
"aim", "opportunity", "tentative", "positioning", "designed",
"create", "seek", "ongoing", "upside", "increase" or "continue" and
variations or other similar words, phrases or expressions. These
statements are based on TCM|Strategic's current expectations
and beliefs, as well as assumptions made by, and information
currently available to, TCM|Strategic, many of which are outside of
TCM|Strategic's and Digimarc's control. Actual results and
future events may differ materially due to risks and uncertainties,
including risks related to the failure of the consummation of the
transaction, Digimarc's liquidity and ability to fund operating and
capital expenses, risks related to potential delays or failures in
development, production and commercialization of Digimarc's
products and services, risks related to Digimarc's failure to
retain customers, suppliers and/or employees, Digimarc's reliance
on third parties, and other risks detailed from time to time in
filings Digimarc makes with the Securities and Exchange Commission,
including Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. TCM|Strategic disclaims
any obligation to update information contained in these
forward-looking statements, whether as a result of new information,
future events, or otherwise. This press release does not
constitute an offer to buy or solicitation of an offer to sell any
securities or a solicitation of any proxy.