We routinely report any key developments in the cannabis arena, and a new entry into the space is definitely up for discussion. INNOVATIV MEDIA GR COM USD0.0001 (OTCMKTS:INMG) took a bold step into the space this week, and the investment community is taking notice.
INMG is a self-styled developer, producer and distributor of digital entertainment and other multi-media content, and the new announcement actually has some good synergy with that field, as we’ll get into more in a minute. The company distributes the motion picture assets of Lux Digital Pictures and, via New Broadway Cinema, develops adaptations of stage shows utilizing its trademarked DigiTheater™ Virtual Reality process. Innovativ also operates The Alien Interview Channel on YouTube, the online channel HPLovecraft.TV and is a principal in the Film Finance Exchange.
INNOVATIV MEDIA GR COM USD0.0001 (OTCMKTS:INMG) will be adding another property to their prolific digital entertainment, as outlined in the latest PR to hit the wires. The company announced it has acquired the media assets of Canna TV OÜ and will be launching a new online, ad supported platform and channel, CannaNet.TV, which will stream curated and original entertainment, informational and educational video content related to the Cannabis and CBD culture and industries.
CannaNet.TV will program a broad mix of live action and animated series, news shows, specials, music videos and tutorials on an independent platform and expects to eventually offer interactive and e-commerce applications. The new network is presently scheduled to be first available in the 4th Quarter of 2017.
“Successful new video networks require large, organized communities and clearly defined audiences and we believe the burgeoning Cannabis space will enthusiastically respond to and support a professionally programmed and managed channel” said Company CEO Tom Coleman. He continued “When these assets became available we moved fast as they will give us a foundation to jump start and develop the network. We expect the platform will be an attractive advertising medium for a wide range of Cannabis and CBD related businesses, products and services looking to target customers, which to date, have had limited online advertising options.” (Source: OTC Disclosure & News Service)
Setting aside the new acquisition, the company was already on a good track, being just over a month removed from reporting record results for its fiscal year ended December 31, 2016. Company revenues increased over 88% and EBITDA increased by over 2200%. The Company has posted 6 Quarters of successive earnings since acquiring the Innovativ Media entertainment assets in mid-2015.
We also see big potential in the company’s HPLovecraft.tv channel, which is an animated web-series based on H.P. Lovecraft’s Novella “At the Mountains of Madness”. Innovativ Media and Sloan Motion Pictures have developed the series and have produced the initial three episodes of what is expected to be a total production of 30 episodes. H.P. Lovecraft’s work has invaded every aspect of pop culture. Rabid fans snatch up Books, Movies, video games, board games, toys and clothing. All based on the Cthulhu Mythos developed by Lovecraft and his contemporaries over 85 years ago. This audience has a strong attachment to the themes and ideas put forth in Lovecraft’s stories and there is a limitless desire to see more and more content based on, and inspired by these stories.
As for the stock itself, we will be exercising an extreme note of caution. While we do like the various projects the company has its hands in, we are wary of the fact that prior to this week, it had a very spotty history with respect to liquidity and price action. Granting that one caveat, we are interested to see how the surge in both those areas this week plays out on the chart. We’ll keep our ears to the tracks for any further developments from INMG, which we wouldn’t be surprised to see on or around the 4/20 holiday. Stay tuned for future updates on INMG and get signed up for our 100% small cap newsletter by simply submitting your active email address into the box below!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in INMG stock, short or long.