- 75% Reduction in Common Shares
- New Deals now in place with Uber and Lyft
- Market Cap Dramatically reduced, now significantly undervalued
Beta Music Group Inc. (OTC PINK: BEMG) through its operating subsidiary Get Credit Healthy, Inc. announced the completion of certain common shareholders exchanging shares of common stock for preferred stock. This shall reduce the common shares outstanding from 1,073,547,329 to just over 284,000,000, an approximate 74% reduction to the outstanding common shares.
Elizabeth Karwowski, CEO, stated
“Reducing the outstanding shares by at least 75 percent will bring considerable value to our shareholders. At this time, we will not engage in a reverse stock split to accomplish our goal. As we aggressively expand nationwide and landing large lending institutions as new clients monthly, we want the price of our stock to reflect the rapidly growing value of our company. I look forward to sharing the continuing progress we expect to make soon.”
As you can see, BEMG’s market cap has dramatically reduced following the reduction in common shares, yet the share prices has yet to reflect this. Taken together, analysts believe that the share price will catch up with the adjusted market cap now that the share structure has been updated, and will be magnified by the recent partnerships BEMG has signed.
Looking to capitalize on the recent news of Uber and Lyft’s pending IPO, BEMG (name to be changed soon to MBO Holdings Inc), recently announced that its subsidiary, Get Credit Healthy (“GCH”), and Driveitaway, Inc. have entered into an agreement aimed at improving the lives of drivers for ride sharing companies, such as Uber and Lyft. DriveItAway is the first dealer-focused enabler for franchise and independent dealers to enter the business of Mobility as a Service – Car Sharing for Ride Share (Lyft, Uber) Drivers, vehicle subscriptions, etc.
What does this new “DriveItAway” deal mean for BEMG?
- Signed exclusive partnership with DriveitAway, Inc. to improve the financial health of drivers for ride sharing companies, such as Uber (3.0 million drivers) and Lyft (1.4 million drivers).
- Uber and Lyft integrate Get Credit Healthy’s technology into DriveItAway’s platform to create a path for its drivers to own their own car.
- An estimated 40% of Uber and Lyft drivers do not have qualifying vehicles so they need the DriveItAway platform of renting cars and Get Credit Healthy’s technology.
- DriveItAway is offering Uber and Lyft drivers access to GCH’s credit coaching resources to all of its consumers at no additional cost to them in order to make that “path to ownership” a little less arduous.
With the share reduction now complete, and significantly large deals being completed, such as the Lyft and Uber deals, this penny stock could soon find it self known as a dollar stock, and no longer a penny stock.