NEW YORK, NY / ACCESSWIRE / November 16, 2018 / Social media technology company Giga Entertainment Media (GEM) announced today that it has reached a settlement with the Securities and Exchange Commission (SEC) in connection with an SEC investigation that began in early 2017. The SEC filed its complaint summarizing the allegations arising from its investigation in a New York federal court on November 15, and the court will also receive the October 9 consent decree agreed to by GEM and the SEC in connection with the settlement between the two parties.
We are extremely pleased to have achieved a successful resolution with the SEC that allows us to move past the investigation and focus all our energy on continuing to develop and deliver innovative technology products in the social media and video content distribution space, said GEM CEO James Massa. GEM's Board paved the way for a successful settlement with the steps taken in the spring and summer of 2018 to restructure the Board of Directors and bring in new executive leadership. In June, I was brought on board and am excited to be part of the team that is leading the company forward.
GEM's Board of Directors remains committed to working with our executive team and outside partners to add value for our shareholders and increase our momentum toward our goal of a successful public offering, said Dr. Robert Morello, Chairman of the Board. Morello added Entering into a consent decree resolving the SEC's investigation was an important milestone for the company. The Board of Directors believes the improved controls established by James Massa and the compliance measures described in the consent decree are a reflection of our renewed commitment to protect our shareholders.
The consent decree agreed to by GEM and the SEC includes a commitment by GEM to maintain the independence of its Board of Directors, and to work with a compliance consultant and outside legal counsel to ensure that communications from the company to current and future investors provide accurate information in a timely fashion. Massa expressed appreciation for the work done by GEM's outside legal counsel, stating This was a long and challenging process, but the company had exceptional guidance from its legal team every step of the way. Abram Pafford, one of the lead attorneys who represented GEM over the course of the SEC investigation said, It was very gratifying to achieve this result for GEM's shareholders. It is unusual for this type of case to be resolved without any financial penalty being imposed on the company. There is always a real sense of satisfaction in helping a client settle a government investigation on favorable terms.
GEM's CEO, James Massa, added We recently announced that GEM has begun generating revenue through a unique advertising platform offered by our SELFEO mobile application, and we are expanding features which allow for multiple revenue streams based on additional services to our users. Massa continued, We plan to grow this revenue base significantly as we head into the new year.
CTO Eddie Huey indicated in regards to product development, GEM is continuing to improve the user experience on existing GEM applications such as SELFEO and our multi-screen Viewer app, and we are looking forward to integrating new features such as the innovative OHMOJI concept. Our strategy also includes a renewed focus on licensing opportunities for our B2B white-label platform, GIGANETTV.
The company indicates it has also increased its marketing efforts with well known, industry-leading partners, such as a web advertising campaign with CBS. Massa described this effort as a component of the company's broader marketing strategy. The partnership with CBS is an important part of GEM's integrated marketing approach, as it leverages the Fusion 4 production capacity of CBS's Boston affiliate, the regional influencers already working with CBS, and the media distribution capacity of one of the country's leading media outlets. Earlier this month, GEM and CBS began the rollout of a regional sports marketing campaign for SELFEO. Massa emphasizes, The beauty of working through CBS affiliates and other sports websites is that we can fine tune the marketing campaign to maximize engaged user downloads across the US in a rapidly scalable model. We are starting in the greater Boston area, as it is a top tier sports region and a tier-two population area, giving us a high quality audience at a more efficient price point than we might see in markets such as New York or Los Angeles.
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About Giga Entertainment Media
Giga Entertainment Media (GEM) is an innovative media and entertainment technology company dedicated to taking the ordinary mobile screen viewing experience and making it extraordinary. Finding content is easy. But at GEM, we know people watching content on their mobile devices want more. More interaction with friends. More integration with social media. More opportunities to multitask. And more is what GEM gives through our innovative, interactive multi-screen mobile applications. GEM's approach to mobile video content starts with its multi-screen, multitasking Viewer platform. Content providers on social media or their followers can Immerse Yourself™ with SELFEO.
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SOURCE: Giga Entertainment Media
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