Chicago, IL --
May 7, 2020 -- InvestorsHub NewsWire -- CMG Holdings Group,
Inc. (CMGO/OTC)
is
pleased to announce strong
audited
financial results for 2019 that prove its successful financial and
operational turnaround. The Company's
wholly-owned operating business – The
Experiential
Agency,
Inc. (XA) – demonstrated solid momentum
with new and repeat customers, including multiple six-figure wins,
that shows its strong competitive positioning in the
large
domestic
experiential advertising
market. Meanwhile, the Company continues to collect
proceeds from
previously settled litigation and acquired common stock in the open
market under its
previously announced share repurchase program.
2019 revenues of
$1,778,773 were up a strong
41%
YoY from $1,258,160 in 2018. The increase was primarily
due
to the
growing event marketing
operations of XA
and
litigation settlement
collections.
Net
income significantly improved to $1.52 million
from
($128,381)
in
the prior year, with EPS
improving
to $0.003 up
significantly from ($0.0003)
as
the Company returned to profitability.
CMGO
exited the year
with cash of $781,752,
up
substantially from $151,871, driven by profits at XA and litigation
settlement proceeds.
Pursuant to the
share buy-back approved by the Board of Directors
in
mid-2019,
CMGO
repurchased
6.4 million
common
shares during the
year returning
capital to
shareholders. The share repurchase program has continued in
2020. 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
also
personally
purchased
2.1 million
shares in the
open market last
year."
Separately,
he added, "On
January
3,
2020,
CMGO
filed an
arbitration proceeding against our former
auditors for
gross malpractice. If
CMGO
prevails
with
these claims,
as we expect we will, the
company has the
potential to collect a significant judgement
in
2020-2021."
In closing Laken said, "After years of being an
Alternative
Reporting
Company, we have audited our
financials and are now Fully-Reporting with the SEC. I
believe this will provide transparency for investors and ultimately
improve CMGO's share price. That said,
the current
pandemic environment has adversely impacted
the target markets
for XA's business. XA is well positioned,
as a lean Company
with minimal overhead backed by CMGO's strong balance sheet, to
weather the economic storm. I believe the experiential advertising
market
will
rebound
by year-end
2020 or
earlier,
which will position XA to be a survivor of the
malaise that ultimately gains market share."
About CMG Holdings Group,
Inc.
CMG Holdings Group, Inc.
(https://www.cmgholdingsinc.com) 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