CHICAGO, IL -- March 5,
2019 -- InvestorsHub NewsWire -- PRLog -- CMG Holdings Group, Inc. issued a
shareholder update today from the office of Chairman and CEO Glenn
Laken.
Shareholder Update
In January 2019, CMG settled its outstanding case with Hudson Gray
and other defendants. I am taking this opportunity to let you
know what has been going on since the settlement. Please be
aware that because an NDA related to the settlement remains in
effect, the information I can currently share with you is limited
in scope.
As you know, the CMG case against the Hudson defendants was
aggressively litigated over the past four years. The case,
which was driven primarily by recovery and research related to over
six terabytes of stolen corporate information, demanded thousands
of hours of e-discovery work, performed almost exclusively by my
wife. There were many times over the years, as the case
slowly progressed, when she and I wondered what we had gotten
ourselves into.
In addition to the thousands of hours invested, we financed the
litigation personally on behalf of CMG and its shareholders.
Without our personal commitment of time and money, the CMG
case against the Hudson defendants could never have gone forward.
To be clear, this was not a passive investment.
The CMG case was managed and dealt with on a day-to-day,
week-to-week basis as it slowly worked its way through Federal
Court. During this time, I strategically chose to take the
company dark so as to not have to make disclosures that could or
might have worked against us. Now that the matter against
Hudson Gray has been settled, CMG is preparing to report again with
a target date of April 1, 2019. When reporting commences, the
particulars of the settlement with the Hudson defendants will be
disclosed as appropriate.
In the interim, there are some items I can discuss. The Burkhardt
case, also under NDA restriction, settled prior to the CMG
settlement at a cost very favorable to CMG's final result.
This settlement, like the CMG settlement, can be disclosed
once CMG regains reporting status.
Additionally, XA, the CMG subsidiary that had been stripped of all
its clients, digital information and ongoing business in 2014 - and
the basis of the CMG case against Hudson Gray - has been making a
remarkable comeback. In 2017, XA grossed approximately
$750,000 netting approximately $50,000. In 2018, XA grossed
roughly $1,300,000 netting approximately $170,000. This year,
XA is projecting $2,250,000 in gross revenues with a net profit of
approximately $250,000 - $275,000. We will continue to
diligently build XA back into an experiential powerhouse. A
new XA website will be up and running in the next few weeks.
XA has also begun concentrating on building an increasingly
significant social media footprint. None of this would have
been possible without a herculean effort by my daughter Alexis and
her creative partner Armon Lewis, who have worked tirelessly and
against all the odds to turn XA into a thriving business again.
The last six weeks have been devoted to cleaning up CMG's balance
sheet. I have settled several lingering debts to the
company's advantage and am waiting on a few more responses from
creditors. Once the old debts have been cleared, I intend to
turn my focus back to where it had been back in 2014, before the
theft of XA's assets diverted my attention away from my initial
mandate - building CMG into a successful holding company with
profitable investments. I intend to make XA the cornerstone
of that effort.
Finally, I would like to extend my heartfelt thanks to all the CMG
investors who never gave up on the belief that I would prevail in
my efforts to save the company and shareholder investment, despite
withering attacks from uninformed and unidentified voices. I
appreciate your understanding and hope that future profits will
make up for an unexpectedly rocky beginning.
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc., a marketing communications company,
engages in the operation of organizations in the alternative
advertising, digital media, experiential and interactive marketing,
and entertainment sectors. The Company is involved in the
production and promotion, event design, sponsorship evaluation,
negotiation and activation, talent buying, show production, stage
and set design, and data analysis and management activities.
It 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. The Company serves clients across
the marketing communication industry. CMG Holdings Group,
Inc. is based in Chicago, Illinois.
Safe Harbor Statement
The above discussion may include predictions, estimates or other
information that might be considered forward-looking. While
these forward-looking statements represent our current judgment on
what the future holds, they are subject to risks and uncertainties
that could cause actual results to differ materially. You are
cautioned not to place undue reliance on these forward-looking
statements, which reflect our opinions only as of the date of this
presentation. Please keep in mind that we are not obligating
ourselves to revise or publicly release the results of any revision
to these forward-looking statements in light of new information or
future events. Throughout any discussion, CMG will attempt to
present important factors relating to our business that may affect
our predictions.
Contact
Glenn Laken
glennbrlaken@gmail.com
(773) 770-3440
Source:
https://www.prlog.org/12757644-cmg-holdings-group-inc-issues-shareholder-update.html