INNOVATIV MEDIA GR COM USD0.0001 (OTCMKTS:INMG) exploded up the charts recently. We covered the stock the last time it ran up in our article “Innovativ Media Group Inc (OTCMKTS: INMG) Gets A Closer Look” and explained that the share price jumped as the company had acquired the media assets of Canna TV and would be launching a new online channel called CannaNet.TV. What happened in the months of July and August? In our opinion, the most relevant catalyst to explain the upward trend in the share price is the purchase of a minority equity interest in Night Flight, Inc. (www.nightflight.com), owner of ‘Night Flight Plus’ www.nightflightplus.com. Before we provide you all the details, have a look at the recent share price action:
What’s the main activity of INMG? The company is a multi-media content producer based in Los Angeles. It seems to be growing at a high pace consequent to the acquisition of other businesses. Lux Digital Pictures, The Alien Channel and Global Gaming Network, Inc. were companies acquired by INMG. Who is deciding these acquisitions? The most interesting profile leading the firm is that of the CEO, Tom Coleman, who has 40 years experience in the entertainment industry.
On May 2, 2017, the company released that it will be a premium event sponsor at MJAC 2017. The event will take place in Los Angeles, California, on September 1-2, 2017. The CannaNet.TV platform, its news online channel and its ad supported channel http://www.cannanet.tv/ will be presented at the event. CEO Tom Coleman explained in the following words:
“MJAC 2017 will be a major industry conference and we believe it a fitting forum to introduce CannaNet. TV” Source
Additionally, Matthew Collom of InvestorsHub.com, who will be organizing the event, noted how relevant will be the presentation of INMG:
“We are pleased to have Innovativ Media Group, Inc. as one of our premium sponsors. The CannaNet platform is quite innovative and we believe it will be of substantial interest to our MJAC 2017 attendees. We are pleased that INMG is choosing to debut it at our Conference.” Source
On May 10, 2017, the quarterly earnings for the period ended in March 31, 2017 was released. We could have a look at the balance sheet of the company and note the cash, the large amount of assets reported and zero long term debt.
- Cash: $72,889
- Total Assets: $2,675,530
- Accounts payable: $26,852
- Total Liabilities (no long term liabilities were reported): $32,361
The most significant asset on the balance sheet is the Unamortized Film Costs. You may know some of the following films owned by INMG. Have a look at the following list (more films can be found here):
- Night of the Living Dead 3D Nightmares in Red
- White and Blue
- American Grindhouse Area 51: The Alien Interview film assets
- The Alien Interview Channel/HPLovecraft. TV Distribution contracts Unproduced projects
Undoubtedly, the most interesting news came later. On June 27, 2017, it was released that the company had acquired a minority equity interest in Night Flight, Inc. www.nightflight.com, owner of ‘Night Flight Plus’ www.nightflightplus.com. The acquired business was explained as follows:
“The iconic premium online streaming network based on the award winning 80s rock n’ roll TV series, and which is also a programmer of a branded sub-channel on CannaNet.TV http://www.cannanet.tv/.” Source
How did the company pay for Night Flight, Inc.? In the same press release, it was noted that a combination of cash and shares was used for the payment. CEO Tom Coleman, explained the significance of the business acquired.
“We believe that Night Flight is positioned to once again become the media taste maker for a new generation of fans seeking a unique and irreverent brand of premium entertainment not found anywhere else online,” Source
Shareholder equity structure
We could have a look at the equity structure in the balance sheet. The following information will be useful for our readers:
- Common stock: 226,724,670 shares issued and outstanding as of June 28, 2017
- Float: 107,111,602 shares as of June 28, 2017
- Series A Preferred stock (not convertible to Common Stock ): 5,000,000 shares issued and outstanding
- Series B Preferred stock (convertible into Common Stock) : 8,152 Issued and Outstanding
- Series C Preferred stock (convertible into Common Stock) : 0 Issued and Outstanding
INMG seems to be exciting the market with new acquisitions. As it happened in April when the company acquired the assets of CannaNet.TV, the new acquisition of Night Flight, Inc. made the market push up the share price. We revisited the financial figures of the company and found a large amount of assets, little liabilities, and no long term debt. Finally, we checked the news and found that the company will be presenting itself in September at MJAC 2017. Hence, we need to be alert as INMG is making a lot of progress and growing its business. Look for share price appreciation to continue.
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Image courtesy of tiziano deromedi via Flickr
Disclosure: We have no position in INMG and have not been compensated for this article.