DIGAF Which recently had a 800% Day Breakout on December 15th Following BTC's breakout is on an uptrend to yet another breakout as BTC breaks its ATH today.
DIGAF was one of the few cryptocurrency stocks to run over 2,500% during the last Crypto rush and I anticipate it could do even more than that next year. The S/S is relatively the same since the last rush and the company has made major progress since then.
Some background on DIGAF and current and future updates to come:
Securter Spin-Out:
1. After the Spin-out DIGAF increases its equity position of Securter from approximately 2% to over 25% - this is very good.
2. The previous Definitive Agreement DIGAF was to fund up to US3m to buy up to 33% of Securter. DIGAF got a Reg 1-A SEC approved but abandoned it probably because the market didn’t like the structure, dilution and/or the valuation. After the Spin-out DIGAF is no longer required to fund; which reduces dilution, DIGAF ends up with approximately the same % at 1/10th the original cost.
3. DIGAF can operate on an annual budget of less than 200k (FS’s Q’s &K’s) cut expenses and kept a low burn rate during the Covid19 disaster pending Securter launch.
4. Securter can now independently fund their own business development @ CAD$0.07, they will be able to raise what they need to launch and get their own skin in the game.
5. DIGAF acquired sales license for a billion-dollar growth market in South America.
6. New opportunity, new market with massive growth potential and Securter has a buy-back clause to pay DIGAF market value as determined by independent valuator.
7. DIGAF has control to fund, not the commitment, South America in each country or joint venture with the largest PSP’s in the area. For DIGAF to go after SA they must have relationships perhaps Columbia or Chile or Brazil, definitely interesting.
8. Buy-back clause where Securter will pay Digatrade fair market value by an independent evaluator. This could trigger as soon as Securter gets acquired by Apple or other major when they roll up the territories and licensing agreements.
9. Provides great growth opportunity and will generate news and Press Releases for the next year.
10. Valuation & price target: A comparable was the Mobeewave acquisition by Apple for US100m. Securter is better than Mobeewave and could easily push up Securter valuation to 200m. At this price, DIGAF would own 25% or 50m equity equivalent and receive cash dividends to redistribute to DIGAF shareholders; or: DIGAF uses the cash for open market stock buy- back and then cancel the shares reduce the issued and outstanding. Current market-cap US1M share price $0.001 * 50 = US$0.05 per share. Usually these growth tech stocks generating net positive cash flow trade minimum 10X so share price would be $0.50+
11. If Securter launch is successful DIGAF shareholders win – the share price will soar on massive volume providing liquidity and trading profits for anyone who wants to sell.
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