Business
DGTL Holdings Inc. Reports Strategic Restructure of Wholly Owned Subsidiaries
Restructure to Divest of an Estimated $5M in Liabilities and Annual Operating Expenses and to ...
About this update from Dgtl Holdings, Inc.
[{"type":"text","content":"DGTL Holdings Inc. Reports Strategic Restructure of Wholly Owned SubsidiariesRestructure to Divest of an Estimated $5M in Liabilities and Annual Operating Expenses and to Reposition DGTL Holdings Inc. for Scalable Revenue Growth, Cashflow Positivity and Accretive M&AToronto, Ontario--(Newsfile Corp. - July 1, 2022) - The DGTL Holdings Inc. (TSXV: DGTL) (\"DGTL\" or the \"Company\") board of directors reports that the Company has initiated a strategic restructuring of its wholly owned subsidiaries, Hashoff LLC (\"Hashoff\"\") and Engagement Labs Inc. (\"Engagement Labs\"). The goal of restructuring its subsidiaries is to apply objective third-party financial analysis to current business operations to assess long term viability and to optimize organizational structures. The result of this initiative is an estimated divestiture of $5,000,402[i] in liabilities and operating expenses and a repositioning of the Company for scalable revenue growth, near-term cashflow positivity, and long-term shareholder equity. On June 1, 2022, Hashoff LLC retained the services of Lindenwood Associates, a New York based strategic development and restructuring firm (\"Lindenwood\") to assess legal and financial viability as well as Klestadt Winters Jureller Southard & Stevens, LLP (\"KWJSS\") to provide legal services to Hashoff LLC in connection therewith. The Hashoff LLC restructuring team has completed a thorough and objective viability assessment. After presenting their report, and reviewing the facts, the board voted unanimously to accept the recommendations of Lindenwood to commence a formal orderly wind down and subsequent dissolution of Hashoff LLC in accordance with Section 18-801 of the Delaware Limited Liability Company Act. The result of the Hashoff LLC wind down is the divestiture of an estimated $1,939,053 in accounts payable and accrued expenses and $572,849 in contingent liabilities from the DGTL Holdings Inc. consolidated balance sheet.[ii] As the initial step towards this financial restructuring project, both of DGTL's wholly owned subsidiaries have been approved for PPP (Paycheck Protection Program) loan forgiveness. PPP loan forgiveness applications were processed by the SBA (Small Business Association) a US federal administration agency that administers small business relief loans (as authorized by s.1106 of the federal CAR...