NEW BRUNSWICK, NJ - Dragon Interact Inc, a secure messaging and social media company's subsidiary under DatChat, Inc (NASDAQ: DATS), has completed the acquisition of RPM Interactive, Inc., a publisher of AI-driven gaming and podcasting applications. The transaction was structured as a share exchange, with Dragon Interact issuing 3.5 million shares of common stock to achieve full ownership of RPM Interactive, including its intellectual property.
The deal sees Dragon Interact's issued and outstanding shares rise to approximately 35,663,326. As part of the acquisition, the company plans to rebrand itself as RPM Interactive, signaling a strategic pivot toward AI-powered podcast and gaming technologies.
Michael Mathews, an industry veteran with a history of leadership roles in technology and marketing companies, has been appointed as the Chairman of the Board for the newly rebranded RPM Interactive Inc. Mathews' experience includes tenure as CEO of Aspen Group (OTC:ASPU) Inc. and Interclick, Inc., which was acquired by Yahoo, Inc.
Darin Myman, CEO of DatChat, Inc., expressed confidence that RPM Interactive's AI technology will disrupt the trivia gaming, online entertainment, and podcasting sectors. He emphasized the enhanced user engagement and personalized content delivery capabilities that the acquisition is expected to bring to niche audiences.
RPM Interactive's business strategy focuses on leveraging generative AI to produce interactive content at scale, catering to highly engaged niche markets. DatChat, Inc. itself is known for its privacy-centric messaging and social media platforms, offering users control over their message visibility and security.
The press release also contained forward-looking statements regarding the anticipated benefits and future performance resulting from the acquisition. However, the company noted that these statements are subject to various risks and uncertainties and should not be relied upon unduly.
This acquisition is based on a press release statement and aims to position RPM Interactive at the forefront of AI-driven entertainment, with the potential to reshape how content is consumed and interacted with across trivia and podcasting platforms.
In other recent news, DatChat, Inc. has seen a flurry of activity. The company's subsidiary, Dragon Interact, recently acquired RPM Interactive, Inc., a strategic move into AI-driven podcast and gaming technologies. The deal resulted in Dragon Interact rebranding as RPM Interactive, reflecting a new focus on AI technologies. Michael Mathews, an experienced tech executive, will serve as Chairman of the Board for RPM Interactive.
In addition to this, DatChat has secured a Notice of Allowance for a U.S. patent related to blockchain-based communication systems. This patent is crucial to the development of its Myseum platform, aimed at preserving and accessing digital content securely. DatChat also acquired an AI-driven tool to enhance the Myseum platform's media library organization capabilities.
Further, DatChat's board of directors approved an amendment to its bylaws, revising the voting rights of shareholders for company proposals, demonstrating a commitment to transparency and fairness in its corporate governance. These recent developments underscore DatChat's ongoing efforts to provide secure and intuitive sharing solutions, meeting the growing need for personal media management.
InvestingPro Insights
As DatChat, Inc. (NASDAQ: DATS) embarks on this strategic acquisition and rebranding, InvestingPro data provides additional context to the company's financial position and market performance.
The company's market capitalization stands at a modest $5.64 million, reflecting its status as a small-cap player in the technology sector. This relatively small size aligns with the company's description as a niche player in its industry, as noted in one of the InvestingPro Tips.
Recent market activity shows significant momentum for DATS stock. InvestingPro data reveals a strong 32.98% return over the last week and an impressive 44.23% return over the last month. This surge in stock price could be partly attributed to investor enthusiasm surrounding the RPM Interactive acquisition and the company's pivot towards AI-driven entertainment.
However, it's important to note that DATS faces some financial challenges. An InvestingPro Tip indicates that the company is quickly burning through cash, which could be a concern as it integrates RPM Interactive and pursues its new business strategy. Additionally, the company is not profitable over the last twelve months, with a negative gross profit of $3.25 million for the same period.
Despite these challenges, DATS holds more cash than debt on its balance sheet, providing some financial flexibility as it navigates this transition. The company's liquid assets also exceed its short-term obligations, which could be crucial for managing the costs associated with the acquisition and rebranding efforts.
Investors considering DATS should be aware that InvestingPro lists 14 additional tips for this stock, offering a more comprehensive analysis of its financial health and market position. These insights could be particularly valuable as the company undergoes significant changes in its business model and market focus.
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