NEW BRUNSWICK, NJ - Dragon Interact Inc., a subsidiary of DatChat, Inc. (NASDAQ: DATS), announced today the complete acquisition of RPM Interactive, Inc. in a share exchange deal, marking a strategic expansion into AI-driven podcast and gaming technologies. The transaction sees Dragon Interact issuing 3.5 million shares of common stock in exchange for 100% ownership of RPM Interactive, including its intellectual property.
Following the acquisition, Dragon Interact intends to rebrand as RPM Interactive. This move reflects its new strategic direction focusing on leveraging artificial intelligence to revolutionize the podcasting and gaming industries. Michael Mathews, a seasoned technology executive with a history of leadership roles at Aspen Group (OTC:ASPU) Inc. and Interclick, Inc., is set to become the Chairman of the Board for the newly named RPM Interactive Inc.
RPM Interactive specializes in publishing AI-generated consumer gaming and podcasting/vodcasting applications. The company aims to create interactive and engaging content for niche audiences, utilizing generative AI systems to produce content at scale.
Darin Myman, CEO of DatChat, expressed confidence that the acquisition will provide significant technological advantages. He highlighted RPM Interactive's unique AI technology as a disruptive force in trivia gaming, online entertainment, and podcasting. Myman anticipates that the integration of AI will offer more personalized and smarter entertainment options.
DatChat, Inc. itself operates within the secure messaging, metaverse, and social media space. The company prides itself on privacy-focused features, such as message lifespan control, screenshot prevention, and encrypted photo concealment.
The information for this report is based on a press release statement. As with any forward-looking statements, they should not be regarded as guarantees of future performance, and actual results may differ materially. DatChat cautions against placing undue reliance on these forward-looking statements, which reflect the company's expectations only as of the date of the press release.
In other recent news, DatChat, Inc. has made significant strides in its quest to enhance digital communication security. The company recently secured a Notice of Allowance for a U.S. patent pertaining to blockchain-based communication systems and methods. This patent is an integral part of DatChat's initiative to advance its Myseum platform, a secure method for preserving and accessing digital content.
In addition to the patent, DatChat has also acquired an AI-driven tool for media library organization, expected to boost the capabilities of the Myseum platform. The AI technology will facilitate intelligent tagging and renaming of images and media files, enhancing the platform's user experience.
Moreover, DatChat's board of directors approved an amendment to its bylaws, revising the voting rights of shareholders for company proposals. This move aims to ensure voting procedures are transparent and straightforward for all parties involved. These are the latest developments in the company's ongoing efforts to provide secure and intuitive sharing solutions in response to the growing need for innovative personal media management.
InvestingPro Insights
As DatChat, Inc. (NASDAQ: DATS) makes strategic moves in the AI-driven podcast and gaming technologies space, InvestingPro data provides additional context for investors. The company's market capitalization stands at a modest $5.64 million, reflecting its current position as a small-cap player in the technology sector.
Recent market performance shows promising signs, with InvestingPro data indicating a significant 32.98% return over the last week and a strong 44.23% return over the past month. This aligns with the company's recent acquisition announcement, suggesting positive market reception to DatChat's strategic direction.
However, investors should note that DatChat faces financial challenges. An InvestingPro Tip highlights that the company is "quickly burning through cash," which could be a concern given the capital-intensive nature of technology development and acquisitions. Additionally, the company is "not profitable over the last twelve months," with a negative gross profit of $3.25 million for the last twelve months as of Q2 2024.
On a positive note, another InvestingPro Tip indicates that DatChat "holds more cash than debt on its balance sheet," which may provide some financial flexibility as it integrates RPM Interactive and pursues its AI-driven strategy.
For a more comprehensive analysis, InvestingPro offers 14 additional tips for DatChat, providing deeper insights into the company's financial health and market position. These tips can be particularly valuable for investors looking to understand the potential risks and opportunities associated with DatChat's recent strategic moves.
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