CHICAGO, Nov. 8, 2019 /PRNewswire/ -- InvestorsHub NewsWire -- CMG Holdings Group, Inc. (OTC-PINK: CMGO) (CMGO/OTC) released results today of another profitable quarter and provided a shareholder update from the office of the CEO, Glenn Laken.
CMG executed well during the three-month period ending September 30, 2019. Total revenues of $448K were up 93% YoY from 233k during same period in 2018, generating a net profit of $147K - a significant increase from a net profit of $12K in 3Q18. XA remains debt-free going into the fourth quarter. In addition, cash on hand is $501K, up 23% from $409K at the end of the second quarter. XA's third quarter was defined by smaller jobs for significant new clients with large experiential budgets, including Timberland. Having just successfully produced a second Timberland event at the beginning of the 4th quarter, XA is now being considered for a much larger role in their experiential program at a meeting this week. In addition, J. Crew has scheduled meetings with our design and production team, and we anticipate bigger projects coming from them over the coming months.
In other news, CMG is beginning a tender offer for 38.5MM shares of restricted stock to reduce the outstanding shares in the Company's float. If successful, we will reduce the O/S by approximately 8.5%. This seems to be low hanging fruit and an efficacious way of spending company dollars. We will keep you informed as the program moves forward.
Additionally, we have a mediation session scheduled with the hope of resolving a malpractice lawsuit recently filed against former legal counsel. We will provide an update when information is available.
Overall, XA's 3rd quarter was very busy with business from a number of new clients. All of these new clients have the potential to bring in significant business going forward. As we execute our plans and continue to increase our market share, it is anticipated that the market will reward us with a significantly higher market cap in the near future.
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc. is a Chicago holding company whose primary operating subsidiary is XA – The Experiential Agency, Inc. (http://www.experientialagency.com) - which engages in the alternative advertising, digital media, experiential and interactive marketing, and entertainment sectors. XA is involved in production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. The business also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks to design and develop individual broadcasting digital media channels to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. XA serves clients across the marketing communication industry. Separately, CMG Holdings Group owns Lincoln Acquisition Corp., a subsidiary formed to manage its portfolio investments.
Statements in this press release about our future expectations, including without limitation, the likelihood that CMG Holdings Group, Inc. will meet minimum sales expectations, be successful and profitable, bring significant value to its stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. CMG's business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing and materially decreases its convertible debt. No information in this press release should be construed in any form shape or manner as an indication of the Company's future revenues, financial condition or stock price.
CMG Holdings Group, Inc.
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