RTG Ventures Audio Interview
1.INTRODUCTION:
I wanted to chat with you about RTG Ventures and also give you the opportunity to get to know me, both as a businessperson and as regular guy with a non-US accent who is very jazzed about bringing RTG and its businesses to the US. To that end, let me share with you some background about myself. My name is Reggie James and I have been part of the digital technological industry for my entire career, both in mainstream companies like Alta Vista and Yahoo and private entrepreneurial ventures in which I was a principal and have successfully sold and often remained a shareholder in what are ongoing businesses. I have never been an officer in a public company before. So the last few weeks has me “gobsmacked” to use a UK word meaning “astonished.” All I know is, we are executing a very buoyant and exciting business plan with the best upside of any business I have been involved in. RTG is in the right place at the right time. This is why I am so puzzled that the market has not responded and rather seems to be capricious at best, contrary to the facts stated in the SEC filings. The results are stated quarterly and we are grossly undervalued by any analysis of the financial information reported.
WHY TODAY’S CONVERSATION?
To share the Company’s thoughts post-change in organization and to begin a direct dialogue about what is real documented by facts. All the discussion must be within public company regulations regarding what can be shared. Regulations since FINRA, in addition to the SEC are becoming more and more stringent. What I am going to describe to you is my modus operendi for building a successful, start up business based on what has worked for me before and what is already evolving into the new blueprint for RTG. To relate directly to the situation today, I’m going to speak about Digital Clarity’s evolution in its first year of operation as an acquisition of RTG, and how that foundation can leverage the power of Cloud Channel, and seek the “low hanging fruit” to increase RTG’s revenue streams dramatically. This is not a dreamscape, DC is a cash flow positive company today. We intend to inject the same principles of management for all the Company.Opportunity driven, through partnerships, through technology, through new business, and through prudent business best practices. Yesterday the analogy was made that a start up is like politics: it is easier to get elected than to govern. Now we are going to govern. We have been silent because we are shape shifting our business and it is just not smart from a competitive point of view to lay all our cards on the table. I will speak about the power of the technology and what we can share now, but know we have prioritized the roll out of the sleek, new Cloud Channel. The Cloud Channel now evolving in house will meet the needs of our customers: the musical artists, sports events, university venues and a wide array of disparate businesses whose opportunities span all the social networks available today and growing exponentially.
HOW TO BUILD A SUSTAINABLE BUSINESS:
It is all about the execution of a business premise which can be monetized. It requires products, including technology and the services provided which is differentiating and leads competition. The differentiation must be simple to understand. A business’s foundation is based on building blocks which measures and integrates the business components, is driven by the right people, and makes changes along the way in any of the key areas. That requires prudence, continuous monitoring and the adherence of a performance driven venture. Digital Clarity has become a cash flow positive company in one year. DC will now steward the completion of Cloud Channel, taking advantage of experience and software which is developing at warp speed. The word “disruptive technology” has become passé and overused. RTG will have technology and a suite of services which can change aspects of this industry. That is what we intend to do, no buzz words. We will expand our consumer base into theUS and the global demographic.
PERFORMANCE OF THE BUSINESS AFTER ONE YEAR:
RTG is in the midst of preparing its 10-K Audit covering its first year of operation. The Company’s accountant/auditor will travel toLondon in early November to make certain the first year of operations is presented to the public as positively as possible. Regulation FD, which the SEC/FINRA is stridently enforcing states information to the public must be presented to all at the same time. The formal 10-K’s and 10-Q’s serve that purpose in a structured way. The micro-cap market has often operated very loosely and that is changing quickly. One example is the BB market is rapidly devolving as market makers chose to trade in the OTCQX and OTCQB (RTG’s platform) for fully reporting companies and the Pink Sheets, the non-reporting companies. Projections for RTG are being developed and tested in the sleeker environment which takes into account new revenues along the way which were not anticipated Keep in mind in the simple DC template for new business we were able to turn revenues into a 30% profit within a quarter. I mention that because it happened and is captured in the previous filings. That was without any capital infusion.
WHY COME TO NY AND LA?
The expansion of the business is a logical next step. LA is the heart and soul of the entertainment business and our partner Aderra is headquartered in LA. When I visitedSan Francisco for the Music Tech Conference earlier this year, the door was opened for potential relationships, likewise Linda Perry has preliminarily met with a number of potential partners which have been kept warm for the last six months, waiting for the product to launch. We think our fully integrated, streamlined offering will result in actual bottom line business because we have something no one else has and we will be bold in the execution of the business in the new skin. Naturally an underlying important component is long term financing, Until we had a viable product, we relied on short term working capital financing which is both very expensive and never enough. In retrospect, (hindsight being 20/20), our technology development should have always been done in house because we would have absorbed the learning along the way, but outsourcing by a prominent company was selected as quicker and cheaper. Wrong, we missed the deadline for launching Cloud Channel Live, but that may be a blessing in disguise. The launch of CC and its evolution is now in hand and the exploitation will follow. It is important to note we are neither throwing everything previous away nor starting from scratch, but rather using the very latest in thinking to hone our products and services in the social media technology to deliver the best product. We have a customer-facing demo concept ready to exploit. I think you all would agree that it would be stupid to share our concept until everything is locked up. But we need time and additional money to make that happen. Reggie’s trip to theUS is scheduled for mid-November and with the help of individuals and companies on both coasts, we will expand our awareness through like-minded decision makers in the industry and continue to build the business accordingly.
MESSAGE TO SHAREHOLDERS AND NEW INVESTORS:
The Company is doing its job and is executing the Business Plan. The plan for a year-long awareness program and identification of a celebrity endorsement along the way is still in place. Neither of these goals have changed, merely were deferred while we assessed dramatic strategic changes. Those changes have now been implemented by the Board of Directors .In a private company or perhaps a larger company, an assessment of this type, with a delay while it takes place, is the norm of business. The measurement along the way is essential. There will be a Board Meeting in November when further details will be recommended for action. But I can tell you this: any dates we put forth or action plan details will take place. RTG needs stability and consistency in its support. The micro-cap market has a poor reputation as a vehicle for a value based investment. Even though we have said RTG is a long term play, people never allowed the pps to gain traction without trading. That was very surprising to me, but our goal continues seek investors who are looking for a real investment in a sustainable company. ”A group of value based investors accumulated over 8 Million shares in the past month and are holding for the long haul. They commented “don’t worry about the pps, just execute the business plan and the pps will take care of itself.” Let’s just say that comment is easier said than done. But our outlook is strong, our filings confirm we have revenues, discontinued operations that were not part of core business are gone and we have the analytics through DC to identify what the customer really wants. We will use the full landscape of social media to bring various kinds of consumers together whether we are speaking of artists, fans, to brand loyalists.
SHARE BUYBACK STRATEGY:
We announced in a PR in the spring that we were going to engage in a Share Buyback Strategy, an announcement which is open for a year according to SEC public information guidelines. Instead we decided to begin an awareness program and geared up for it, intending to launch the product by the end of the summer, following the SEC guideline: “Issuers should refrain from repurchases during periods when significant information regarding matters such as proposed acquisitions, dispositions or mergers, significant new contracts, new products and marketing plans. Financial results and forecasts, additional financing or capital investment plans or changes in management or control has not been fully disseminated to the investing public.” We need to evaluate whether the share buyback is the right strategy and intelligently decide whether to execute this or re-invest and ramp-up our technology offering.
SUMMARY:
The last year was a series of ups and downs. Those are now behind us and we have a straight line forward. Give us the chance to execute, we have just made very dramatic, strategic decisions and we must recalibrate and are. I gave David a sneak preview of the technology and got his unadulterated support. He was also familiar with the original version of Cloud Channel and this evolution, in conjunction with DC’s foundation, jumps a generation! Speak again soon everybody.