TCM|Strategic Partners Invests $53.5 million in Digimarc

TCM|Strategic Partners Invests $53.5 million in Digimarc

PR Newswire

BEAVERTON, Oregon, Sept. 29, 2020

Provides Growth Capital as Market for Platform Expands

BEAVERTON, Oregon, Sept. 29, 2020 /PRNewswire/ -- Digimarc Corporation (NASDAQ: DMRC), creator of the Digimarc Platform for digital identification and detection, today announced a $53.5 million investment from TCM|Strategic Partners led by long time shareholder Riley McCormack.

"We are very pleased by the vote of confidence evidenced in this investment from TCM|Strategic Partners and look forward to welcoming its principal investor, Riley McCormack, to our Board of Directors.  Riley is a long time shareholder, astute investor, and an extremely diligent student of the company and its strategy who will help guide the company through continuing expansion of the market for our platform, such as the massive sustainability initiative announced recently," said Bruce Davis, Chairman and CEO. "This investment gives us adequate working capital for the foreseeable future, allowing management to focus all its energy on growth of the business and continuing roll out of Digimarc Barcode as successor to traditional barcodes."

Mr. McCormack explained, "TCM|Strategic's decision to make this investment was the result of two conclusions:

TCM purchased approximately 2.5 million shares of common stock, representing 19.9% of the company's outstanding common stock, with the balance of the investment to be made through the purchase of convertible preferred shares, subject to the satisfaction of customary closing conditions.  The convertible preferred shares will convert automatically following shareholder approval required under Nasdaq Listing Rules 5635(b) and 5635(d).

A summary of the principal terms of the investment follow.  Please refer to the Form 8-K and documents filed with the SEC for additional information:

A special meeting of the shareholders to approve the conversion of the preferred shares into common will be scheduled shortly.

About Digimarc
Digimarc Corporation (NASDAQ: DMRC) is a pioneer in the automatic identification of media, including packaging, other commercial print, digital images, audio and video. The Digimarc Platform provides innovative and comprehensive automatic identification software and services to simplify search and transform information discovery through unparalleled reliability, efficiency and security. The Digimarc Platform enables applications that benefit retailers and consumer brands, national and state government agencies, media and entertainment industries, and others. Digimarc is based in Beaverton, Oregon, with a growing supplier network around the world. Visit digimarc.com and follow us @digimarc to learn more about The Barcode of Everything®.

About TCM|Strategic
TCM|Strategic is an investment fund managed by Riley McCormack.  Prior to founding TCM|Strategic, Mr. McCormack was the founder, CEO and PM of Tracer Capital Management, a $1.5 billion NY-based global Technology, Media and Telecommunication Hedge Fund.  Prior to Tracer, Mr. McCormack was a partner at Coatue Capital and a High Yield research analyst at Morgan Stanley.  Mr. McCormack graduated Summa Cum Laude from the Wharton School, University of Pennsylvania, where he was a Benjamin Franklin Scholar and a Joseph Wharton Scholar.

Forward-looking Statements and Additional Information
This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Section 27A of the Securities Act of 1933. These statements include, without limitation, statements regarding the investment by TCM|Strategic and participation of its principal investor, the current and future value of the Company and its businesses, the continued expansion of the market for our platform, various initiatives, the adequacy of our working capital and the increase in the value of our growth business.  Such forward-looking statements include all other statements that are not historical facts, as statements that are preceded by, followed by or that include words or phrases such as "may," "might," "plan," "should," "could," "expect," "anticipate," "intend," "believe," "project," "forecast," "estimate," "continue," and variations of such terms or similar expressions. These forward-looking statements are based on our expectations and beliefs concerning future events impacting us, and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements, including as a result of the size and growth of our markets; protection, development and enforcement of our intellectual property portfolio; adoption or endorsement of our technology by leading companies in the retail and consumer products industries or standard-setting bodies or institutions; our future profitability; competition from larger companies or alternative technologies; and acceptance in our markets of our revenue models and pricing structures.  Investors are cautioned not to place undue reliance on such statements, which reflect management's opinions only as of the date of this release. More detailed information about risk factors that may affect actual results are outlined in the company's Form 10-K for the year ended December 31, 2019, and in subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC and available at www.sec.gov. Forward-looking statements speak only as of the dates on which they are made and except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

In addition to our forward-looking statements, we may reference or disclose from time to time statements or information provided to or about us by our investors, partners and actual or prospective customers. Such statements and information reflect the beliefs, expectations, views and opinions of the party making such statements, not of the Company.  The Company cannot verify or vouch for such information, and investors are cautioned not to place undue reliance on any such statements.

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