DatChat Issues Shareholder Letter and Provides Corporate Update
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The strategic decision by DatChat to spin off SmarterVerse as a separate publicly listed entity is a significant move that may have substantial implications for the company's market valuation and investor perception. This type of corporate action often aims to streamline operations and enhance focus on core competencies, which can lead to improved financial performance and shareholder value. The distribution of shares to existing DatChat shareholders could be perceived as a value-added gesture, potentially increasing investor loyalty and interest in both entities.
However, the success of such a spin-off hinges on market reception and the operational viability of SmarterVerse as a standalone company. Investors should closely monitor the filing and effectiveness of the required SEC registration statements and the achievement of regulatory approvals, as these are critical milestones that will determine the feasibility and timing of the spin-off. The growth trajectory and market potential of the Habytat AI Gaming platform and metaverse will be under scrutiny, as their performance will be pivotal to SmarterVerse's success post-distribution.
From a financial perspective, the announcement of the potential spin-off of SmarterVerse must be analyzed in the context of DatChat's current financial position and future revenue streams. The ownership of ten issued patents is a strong indicator of the company's commitment to innovation and intellectual property protection, which is crucial in the technology sector. The patents not only secure DatChat's proprietary technology but also represent potential sources of licensing revenue or strategic leverage in partnerships and industry collaborations.
Investors should consider the implications of the spin-off on DatChat's balance sheet and income statement. The separation could lead to initial costs associated with the transaction, but if managed effectively, it may result in a more focused business strategy and allocation of capital to high-growth areas. The long-term financial health of both DatChat and SmarterVerse will depend on their ability to capitalize on their respective markets and the successful execution of their business plans.
The intellectual property landscape is critical in the tech industry and DatChat's emphasis on patenting its technology platforms is a strategic move to safeguard its innovations. The mention of a key patent received in October 2023 for the 'preservation of data' on social media platforms and digital archives could potentially provide DatChat with a competitive edge in the social media technology space. This patent, deemed the most important by the CEO, could deter competitors and establish DatChat as a leader in secure data sharing and storage.
Legal experts will be attentive to the execution of the spin-off, ensuring compliance with all regulatory requirements and the protection of shareholder interests. The effectiveness of the Form S-1 or Form 10 registration statements will be crucial for the legal structuring of the spin-off. Additionally, the company's ability to maintain control over its intellectual property post-distribution will be vital for both DatChat and SmarterVerse's future operations and growth.
New Brunswick, NJ, Jan. 16, 2024 (GLOBE NEWSWIRE) -- DatChat (Nasdaq: DATS), a secure messaging, social media, and metaverse company, today issued a letter to shareholders from its Chief Executive Officer, Darin Myman.
Dear fellow shareholders,
It is with great enthusiasm and pride that I share with you the progress and strategic advancements that have defined our journey this past year. While 2023 was a foundational year of development, including the architecture and patenting the intellectual property of our technology platforms, we remained diligent in our focus on initiatives aimed at driving user growth, revenue and increasing shareholder value. Currently, we have ten issued patents that are important in protecting our proprietary technology and feel that we are in a strong financial position to successfully execute our business plan in 2024.
SmarterVerse Stock Distribution
Currently DatChat owns approximately
My Family Museum
We are extremely excited with our core business, starting with the potential for growth with My Family Museum. Many of us have more pictures and videos than ever before which has resulted in what we perceive as a new challenge—namely how can users share photos and videos safely within our secured network? We believe that question was answered positively when we received our patent in October 2023, enabling us with the preservation of data, including storage, sharing, and secure control of data on social media technology platforms and digital archives. In our opinion, this patent might be the most important of the ten we now have in our intellectual property portfolio. While many of us share selected pictures on social media, in our experience that the bulk of personal media is locked away on users’ devices and presently inaccessible to others without access to a user’s password. My Family Museum will allow users to create a personal museum that is being designed to make it simpler to share pictures, videos and documents utilizing planned features such as creating instant sharing spaces at family gatherings, time released video messages, multi-tiered social media, and secure family document storage and sharing. Currently scheduled to launch in the second quarter of 2024, the My Family Museum platform is expected to encompass features and social networking technology designed to unlock and share our digital media.
There are many reasons why I am optimistic about the future of DatChat. I believe that our near-term initiatives are poised for positive results ahead, in both unlocking shareholder value and creating significant growth and revenue opportunities.
I would like to thank each of our shareholders for their continued support and look forward to sharing our progress again soon.
Sincerely
Darin Myman
Chief Executive Officer of DatChat
About DatChat Inc.
DatChat Inc. is a secure messaging, metaverse, and social media company that not only focuses on protecting privacy on personal devices, but also protects user information after it is shared with others. The DatChat Messenger & Private Social Network presents technology that allows users to change how long their messages can be viewed before or after users send them, prevents screenshots, and hides encrypted photos in plain sight on camera rolls. DatChat's patented technology offers users a traditional texting experience while providing control and security for their messages. With the DatChat Messenger, a user can decide how long their messages last on a recipient's device, while feeling secure that at any time, they can delete individual messages or entire message threads, making it like the conversation never happened.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the SEC, not limited to Risk Factors relating to its business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
Contact
ir@datchats.com
800-658-8081
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