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RTG Ventures Strengthens the Balance Sheet With Board Actions


News provided by

RTG Ventures, Inc.

Mar 07, 2012, 10:00 ET

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NEW YORK, March 7, 2012 /PRNewswire/ -- Following RTG Ventures, Inc.'s (OTCQB:RTGV) restructure of its short-term debt, the Company has and will continue to improve its balance sheet. As filed in the 10-K and 10-Q recently, the acquisition of STYLAR a/k/a Digital Clarity resulted in a Preferred Share Designation ("PSD"), as follows: Total of 2 Million Preferred Shares convertible to Common Shares under Rule 144, Price per Share set as the closing price 30-days preceding September 3, 2011 at $0.016083, ratio of PS:CS at 1:53.04. Simply stated every Preferred Share will eventually convert to 53.04 shares of common stock. Reggie James was the majority shareholder of STYLAR and now holds 166,176 Preferred Shares in RTG as a result of the acquisition.

Using the same PSD, Neil Gray has swapped all of his salary since April 2010 for Preferred Stock at $0.016083 as well. The Chairman is illustrating his support and belief in RTG given that the current PPS is well below the strike price for the swap. Gray will no longer accrue salary as a Non-Qualified Performance Based Stock Option Program has also been implemented. The strike price for any equity award will be at the same strike price of $0.016083. Of all Stock Option Plans in existence for public companies, only 5% have a strike price above the market price. RTG's Board is betting on a price, not only above the market today by some distance, but well above the strike price, or the options have no value to the recipients.

Also reflected in the SEC filings since July 2010, Linda Perry has sold her debt and accruals in tranches to non-affiliated third parties, and made Contributions to Capital as a strategic financing tool for Company liabilities. This approach was intended to offset the convertible debenture financing as there was no automatic conversion of debt. The debt paper is in friendly hands and the balance sheet is improved by Contributions to Capital.

The three significant events highlighted here -- the STYLAR acquisition through Preferred Shares held by James; the debt for equity swap by Gray of accruals at a PPS of $0.016083 also for Preferred Shares; and the sale of debt to non-affiliated third parties and concurrent contribution to capital by Perry -- all reflect an internal restructuring by RTG's Board in support of a streamlined organization and an alignment with shareholders. With the internal realignment and resulting balance sheet enhancements which the Board will continue to identify and seek out, RTG will be in a very positive position with the investment community, long term financing opportunities, and prospective business partners.

Digital Clarity has recently expanded into the US markets by adding 2 new customer wins, one on each coast. Details will be shared shortly.

Linda Perry has returned from the LA meetings and will now meet in NYC with the investment bankers from the NIBA Conference. A return trip to Los Angeles is scheduled for the 19th of this month.

About RTG Ventures

RTG Ventures offers Music & Entertainment Technology Solutions and Digital Marketing Services. Harnessing the strength of its digital marketing agency, that has a trusted reputation over the last 8 years, the company has applied its knowledge process in developing cutting edge technology platforms for web, mobile and tablet devices.

Using Digital Clarity's application in the Marketing and Social arena, RTG Ventures offers a unique value proposition of intelligent, analytics based technology solutions with the support of an experienced digital marketing team. RTG Ventures, Inc. is an OTC:QB Company. Symbol RTGV.

Safe Harbor Provisions

The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in RTGV's reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.

Investor Relations Contact Information

David Marioni
First State Internet Services
Wilmington, DE 19804
Tel: 302-983-8196

SOURCE RTG Ventures, Inc.

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