Momentous Entertainment Group Inc (OTCMKTS:MMEG) shares were up 160% on Tuesday to $0.00260 and down 22.31% in after-hours trading to $0.00202. The company has a market cap of $694,564.00 at 267.14 million shares outstanding. Share prices have been trading in a 52-week range of $0.00 to $1.05.
Momentous Entertainment Group is a media company that intends to operate in four segments of the media industry: content, distribution, live events and direct marketing. The content segment has a recording division, and a film and television division. The distribution segment will focus on the distribution of company content through cable, radio, television and streaming distribution outlets. The live entertainment segment will focus on highlighting contracted artists, their content and the creation of additional content that cost has been cover by the consumers while the marketing segment will directly sell intellectual property to consumers.
The recording division offers an album to the faith market entitled the Greatest Story Ever Sung with music from Susan Olmon and the late Roger Clark, and narration of the story of the life of Jesus by Stephen Baldwin. Momentous Entertainment Group also intends to sponsor live concerts and other musical events.
In a press release this week, Momentous Entertainment Group announced thatit has negotiated all points of the acquisition documents with the sellers of Poolworks and has set the closing date at January 2, 2017. Back in November, the company executed a binding agreement to acquire Poolworks Germany Ltd, which is one of the largest social media companies in Europe with its social networks studiVZ and meinVZ, for $10 million in preferred stock.
“Even though we would have liked to close the transaction this year, I don’t see how taking a few extra days to close in early January 2017 is an issue and considering Microsoft’s anticipated purchase of LinkedIn valuated at $247 per user and FaceBook’s valuation of $200 per user; acquiring Poolworks for $1 per user affords the opportunity for substantial growth and makes the wait more acceptable,” said Momentous Entertainment Group CEO Kurt Neubauer.
Founded in 2005 in Berlin, the studiVZ platform received investment capital from Lukasz Gadowski, Georg von Holtzbrinck Publishing Group and the Samwer brothers. A couple of years later, it was acquired along with meinVZ by Georg von Holtzbrinck Publishing Group for 85 million EUR and then by financiers Michael Pope and Adam Levin in 2012. As of today, studiVZ and meinVZ have more than 10 million registered users and over 45 million page impressions per month, mostly in the German-speaking countries of Germany, Switzerland and Austria.
The Poolworks acquisition will bring the necessary asset value to Momentous to begin to consider the process of a possible uplisting to the NASDAQ or the New York Stock Exchange,” Nebauer previously stated.
In line with this, Momentous Entertainment Group remains committed to enhancing and relaunching the web and mobile platforms to increase user engagement and retention, expand the video features with an OTT streaming service and adding e-commerce capabilities to attract a younger audience and more revenue.
The company’s stock has still been on the decline, although volume has picked up on news of these acquisitions and again when the closing date was confirmed. This could establish a bottom in Momentous Entertainment Group shares and allow it to start a steady climb from here.
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