Destiny Media Technologies Inc. Announces Share Consolidation and Normal Course Issuer Bid
Vancouver, British Columbia--(Newsfile Corp. - August 21, 2019) - Destiny Media Technologies Inc. (TSXV: DSY) (OTCQB: DSNY) ("Destiny" or the "Company") announced today that the board of directors of the Company has approved a proposed consolidation of its outstanding shares of common stock (the "Shares") on the basis of five (5) pre-consolidation shares for one (1) post-consolidation share (the "Consolidation"), subject to regulatory approval.
As at August 20, 2019, a total of 55,013,874 shares were issued and outstanding in the capital of the Company. Assuming completion of the Consolidation, it is expected that there will be a total of approximately 11,002,775 shares issued and outstanding.
Subject to regulatory approval and completion of the Consolidation, the Company intends to conduct a normal course issuer bid (the "Bid") pursuant to which the Company may purchase up to a maximum of 550,140 post-Consolidation shares of common stock in the capital of the Company (the "Shares"), representing approximately 5% of the outstanding Shares. No more than 2% of the outstanding Shares may be purchased in any 30-day period.
The Company intends to commence the Bid on or about September 16, 2019 and terminate the Bid on or about September 15, 2020. Purchases pursuant to the Bid will be made from time to time by RBC Dominion Securities Inc. on behalf of the Company through the facilities of the TSX Venture Exchange. Shares purchased will be paid for with cash available from the Company's working capital. All Shares purchased pursuant to the Bid will be returned to treasury as authorized but unissued shares.
The Company sees tremendous growth opportunities that can be pursued by reinvesting existing profitability. The Company is of the view that the recent market prices of its shares do not properly reflect the underlying value of the shares. The Company has in excess of $2.7M in cash and short term investments and has trailing 4 quarters net income of $0.668M. No insiders of the Company intend to participate in the Bid.
The Company believes that a reverse consolidation will provide greater clarity to investors of earnings, provide greater access to potential investors, and will better represent the underlying financial health of the organization.
About Destiny Media Technologies, Inc.
Destiny provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE® (www.plaympe.com), provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond. More information can be found at www.dsny.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
DESTINY MEDIA TECHNOLOGIES INC.
Fred Vandenberg, CEO
Tel: (604) 609 7736 x236
Forward Looking Information
Certain statements contained in this press release may constitute forward-looking information under applicable securities laws, including statements related to the anticipated outstanding share capital following completion of the Consolidation and the proposed Bid and the number of Shares to be acquired thereunder. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this news release.
In making the forward‐looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that regulatory approval of the Consolidation and Bid will be obtained in a timely manner and that general economic and business conditions will not change in a materially adverse manner. Although the forward-looking information contained in this news release is based upon assumptions that management of the Company believes are reasonable based on currently available information, there can be no assurance that actual results will be consistent with the forward-looking information. Actual results may differ materially from the forward looking information due to known and unknown risks and uncertainties, many of which are beyond the Company's control, including, among other things, general economic conditions; availability of equity and debt financing; the performance of the Shares or the stock exchanges generally; and other risks and factors described from time to time in the documents filed under the Company's profile at www.sedar.com. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. Except as required by applicable securities laws, the Company does not undertake to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the statements are made.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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