Category: Tech

Release – Digerati Announces Appointment of Derek Gietzen to President

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on DTGI

SAN ANTONIO, October 3, 2022 (GLOBE NEWSWIRE) Digerati Technologies, Inc. (OTCQB: DTGI) (“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, today announced that Derek Gietzen has been named as the Company’s President. Currently, Mr. Gietzen is President of NextLevel Internet (“NextLevel”), a Digerati subsidiary.

Mr. Gietzen is an experienced 20-year telecommunications executive with a track record of managing successful high-growth companies. In addition to achieving consistent double-digit growth at NextLevel, Mr. Gietzen’s passion for creating amazing corporate cultures led NextLevel to be recognized as a certified ‘Great Place to Work in the U.S’, for each of the last three years.

“Since our acquisition of NextLevel earlier this year, Derek has been instrumental in the operational integration of Digerati’s various subsidiaries,” said Arthur L. Smith, Chief Executive Officer. “Derek is an inspirational leader who perfectly aligns with our core values and brings the added skills necessary to successfully execute our business plan and ongoing M&A strategy. We are confident his contribution will enhance our ability to deliver on our corporate goals and assist us with creating long-term shareholder value.”

“This is an exciting time for Digerati, and I am thrilled to be taking on the role of President of the combined operations,” said Derek Gietzen. “We have an amazing leadership team, and I look forward to all we can accomplish.”

About Digerati Technologies, Inc.

Digerati Technologies, Inc. (OTCQB: DTGI) provides cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries NextLevel Internet (NextLevelinternet.com), T3 Communications (T3com.com), Nexogy (Nexogy.com), and SkyNet Telecom (Skynettelecom.net), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including, cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™. For more information, please visit www.digerati-inc.com and follow DTGI on LinkedIn, Twitter, and Facebook.

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the applicable securities laws. Forward-looking statements generally are accompanied by words such as “confident,” “accomplish,” “enhance,” “ability,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements like ‘we are confident his contribution will enhance our ability to deliver on our corporate goals and assist us with creating long-term shareholder value,’ are not intended to serve as and must not be relied on by any investor or other person as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Digerati. These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to general economic, financial, legal, political and business conditions and changes in domestic and foreign markets.

Facebook: Digerati Technologies, Inc.
Twitter: @DIGERATI_IR
LinkedIn: Digerati Technologies, Inc.

Investors
ClearThink
Brian Loper
bloper@clearthink.capital
(347) 413-4234

Voyager Digital (VYGVQ) – A Winner Declared?

Posted on by cpatches


Wednesday, September 28, 2022

Voyager Digital Ltd.’s (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2) US subsidiary, Voyager Digital, LLC, is a fast-growing cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost-efficiency to the marketplace. Voyager offers a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Auction Completed. Voyager announced the completion of the Company’s auction process. The Company has selected West Realm Shires Inc. (“FTX US”) as the highest and best bid for its assets. The Official Committee of Unsecured Creditors supports FTX US’s winning bid.

The Winning Bid with a Caveat. FTX US’s winning bid for Voyager’s assets was for $1.422 billion, which comprises the fair market value of all Voyager cryptocurrency at a to-be-determined date in the future, which at current market prices is estimated to be $1.311 billion, and additional consideration that is estimated as providing approximately $111 million of incremental value. However, FTX US has the potential to be outbid over the next couple of weeks, as the objection deadline is the final day of allowing higher bids to be placed.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Voyager Completes Successful Auction and Announces Agreement for FTX to Acquire Its Assets

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on VYGVQ

September 26, 2022 09:54 PM EST

Voyager Digital Ltd. (“Voyager” or the “Company”) (OTC Pink VYGVQ; FRA: UCD2) announced today that after multiple rounds of bidding in a highly competitive auction process that lasted two weeks, its operating company Voyager Digital LLC, selected West Realm Shires Inc. (“FTX US”) as the highest and best bid for its assets. The Official Committee of Unsecured Creditors (“UCC”) participated actively in the competitive auction and supports FTX US’s winning bid.
 
FTX US’s bid is valued at approximately $1.422 billion, comprised of (i) the fair market value of all Voyager cryptocurrency at a to-be-determined date in the future, which at current market prices is estimated to be $1.311 billion, plus (ii) additional consideration that is estimated as providing approximately $111 million of incremental value. The Company’s claims against Three Arrows Capital remain with the bankruptcy estate, which will distribute any available recovery on such claims to the estate’s creditors.
 
FTX US’s bid maximizes value and minimizes the remaining duration of the Company’s restructuring by providing a clear path forward for the Debtors to consummate a chapter 11 plan and return value to their customers and other creditors. FTX US’s market-leading, secure trading platform will enable customers to trade and store cryptocurrency after the conclusion of the Company’s chapter 11 cases.
 
The asset purchase agreement between Voyager Digital LLC and FTX US will be presented for approval to the United States Bankruptcy Court for the Southern District of New York on Wednesday, October 19, 2022 and the objection deadline to the transaction is October 12, 2022 at 4:00 p.m. prevailing Eastern Time. The sale to FTX US will be consummated pursuant to a chapter 11 plan, which will be subject to a creditor vote and is subject to other customary closing conditions. FTX US and the Company will work to close the transaction promptly following approval of the chapter 11 plan by the Bankruptcy Court.
 
The auction follows Voyager’s July 5, 2022 entrance into a voluntary restructuring process aimed at returning maximum value to customers. Since the Company’s chapter 11 filing, in furtherance of this objective, Voyager has engaged in a dual-track process, considering both a potential sale and a standalone reorganization. In-line with the process outlined in court filings, Voyager received multiple bids contemplating sale and reorganization alternatives, held an auction and, based on the results of the auction, has determined that the sale transaction with FTX is the best alternative for Voyager stakeholders.
 
Additional information about the timeline and customer access to crypto will be shared as it becomes available. A copy of the Bidding Procedures, Bidding Procedures Order, Bidding Procedures Motion and other pleadings filed in this case may be obtained free of charge by visiting the Voyager case website https://cases.stretto.com/Voyager.
 
The results of the auction do not change the Bar Date nor the need for customers to determine whether to file a claim. More information can be found here. Customers can file a claim on Voyager’s case website here. The deadline for filing a claim is October 3, 2022, at 5:00 PM ET.
 
Voyager was advised by Kirkland & Ellis LLP, Moelis & Company LLC, and Berkeley Research Group. FTX US was advised by Sullivan & Cromwell LLP. The UCC was advised by McDermott Will & Emery LLP and FTI Consulting.
 
Forward Looking Statements
Certain information in this press release, including, but not limited to, statements regarding future growth and performance of the business, momentum in the businesses, future adoption of digital assets, and the Company‘s anticipated results may constitute forward looking information (collectively, forward-looking statements), which can be identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” (or the negatives) or other similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Voyager’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Forward looking statements are subject to the risk that the global economy, industry, or the Company’s businesses and investments do not perform as anticipated, that revenue or expenses estimates may not be met or may be materially less or more than those anticipated, that parties to whom the Company lends assets are able to repay such loans in full and in a timely manner, that trading momentum does not continue or the demand for trading solutions declines, customer acquisition does not increase as planned, product and international expansion do not occur as planned, risks of compliance with laws and regulations that currently apply or become applicable to the business and those other risks contained in the Company’s public filings, including in its Management Discussion and Analysis and its Annual Information Form (AIF). Factors that could cause actual results of the Company and its businesses to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; changes in laws or approaches to regulation, the failure or delay in the adoption of digital assets and the blockchain ecosystem by institutions; changes in the volatility of crypto currency, changes in demand for Bitcoin and Ethereum, changes in the status or classification of cryptocurrency assets, cybersecurity breaches, a delay or failure in developing infrastructure for the trading businesses or achieving mandates and gaining traction; failure to grow assets under management, an adverse development with respect to an issuer or party to the transaction or failure to obtain a required regulatory approval. Readers are cautioned that Assets on Platform and trading volumes fluctuate and may increase and decrease from time to time and that such fluctuations are beyond the Company’s control. Forward-looking statements, past and present performance and trends are not guarantees of future performance, accordingly, you should not put undue reliance on forward-looking statements, current or past performance, or current or past trends. Information identifying assumptions, risks, and uncertainties relating to the Company are contained in its filings with the Canadian securities regulators available at www.sedar.com. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events, except as required by law. The Company assumes no obligation to provide operational updates, except as required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for digital assets may not continue and readers should not put undue reliance on past performance and current trends.
 
SOURCE Voyager Digital, Ltd.

Contacts
 
Voyager Digital, Ltd.
Voyager Public Relations Team
pr@investvoyager.com

After SPAC Merger, EV Company Takes First Day Wild Ride

Posted on by aweinsoff@channelchek.com
Image Credit: Ivan Radic (Flickr)

EV Motorcycle Division Merged with SPAC and Goes Full Throttle at Market Open

Harley-Davidson’s EV electric-motorcycle division was just merged with the SPAC (special purpose acquisition corporation) AEA-Bridges (IMPX). The newly merged company, retaining the name LiveWire (LVWR) accelerated from the opening bell on day one. It quickly rose 23.9% in the first half hour of trading. While the company then gravitated back toward its opening price, the performance for these SPAC investors this year far exceeds that of the major indices.

The relative success of this reverse merger demonstrates that so-called blank check companies can still provide value to investors and can still strike deals with a quality target.

The current decline in valuations of companies and assets through 2022 may even serve to make for a target-rich environment for SPACS still trying to find an exceptional deal for their SPAC investors.

LiveWire, which will continue operating under this name and trading with ticker $LVWR, had been a subsidiary of Harley-Davidson Inc. (HOG). The iconic motorcycle maker and merchandise licenser retained a controlling (75%) interest in the e-motorcycle operation after the deal closed.

The stock had been halted after hitting NYSE circuit breakers on its first trading day (September 27) because of volatility. The morning range has been down as much as 4.2% and up as much as 23.9% in within the first half hour after the open. The stock, which began as an IPO pre-merger at $10, opened the year at $9.99 and is now trading about 10% below. The overall market, as measured by the S&P 500, is down 23.76% on the year.

Livewire likes it to be known that they are the “first and only” electric-vehicle motorcycle company in the U.S. to be listed on the NYSE. They raised approximately $334 million in proceeds from the acquisition.

Harley-Davidson’s stock ran up 1.5% in morning trading. It has climbed 14.8% over the past three months, during that period, the S&P 500 index has lost 5.2%.

More About LiveWire

LiveWire describes itself as the future in the making for the pursuit of urban adventure and beyond.

It draws on its long history, having begun ten years ago as a disruptor from the shops of Harley-Davidson. This gives it a giant head start in the EV sector. LiveWire’s ambition is to be the most desirable electric motorcycle brand in the world. With a dedicated focus on EV, LiveWire plans to develop the technology of the future and to invest in the capabilities needed to lead the transformation of motorcycling.

Harley-Davidson

Harley Davidson intends to build on it’s legend of leading the industry through innovation, evolution and emotion. It imparted on LiveWire the understanding that the product represents more than its utility. For its customers, Harley’s represent the timeless pursuit of adventure and freedom for the soul. The company’s focus is to maintain its place as the most desirable motorcycle brand in the world. The 75% ownership in Livewire, plus the cash infusion, should serve to allow its investment in the EV sector to take an even larger role in electrified transportation.  

Paul Hoffman

Managing Editor, Channelchek

Sources

https://investor.harley-davidson.com/news/news-details/2022/Harley-Davidson-LiveWire-and-AEA-Bridges-Impact-Corp-Announce-Closing-of-Business-Combination/default.aspx

https://www.marketwatch.com/story/livewire-stock-to-surge-on-nyse-debut-11664284420?siteid=yhoof2

www.koyfin.com

Did Fear, Uncertainty, and Doubt Cause Ethereum’s Merge?

Posted on by cpatches
Image Credit: US Funds

Decision To Switch Ethereum To Proof-Of-Stake May Have Been Based On Misleading Energy FUD

After countless delays, the Ethereum “Merge” finally took place last week, switching the blockchain protocol from proof-of-work (PoW) to proof-of-stake (PoS).

What this means, in brief, is that Ethereum’s native coin, Ether (ETH)—the world’s second largest digital asset following Bitcoin (BTC)—can no longer be mined using a graphics processing unit (GPU). Instead, participants can choose to “stake” their ETH on the network. The Ethereum network then selects which of these participants, known as “validators,” gets to validate transactions, and if such validations are found to be accurate and legitimate, participants are rewarded with new ETH blocks.

This article was republished with permission from Frank Talk, a CEO Blog by Frank Holmes of U.S. Global Investors (GROW). Find more of Frank’s articles here – Originally published September 21, 2022

So what’s the catch? Well, there are a couple of big ones:

1) To become a validator, participants must stake at least 32 ETH, the equivalent of $43,000 at today’s prices, and

2) They must stake them for years.

You can see, then, how the Merge has transformed ETH from a decentralized asset, available to any young gamer with access to a decent GPU, to more of a centralized, oligarchic asset, controlled by a relatively few participants who already own tens of thousands of dollars’ worth of ETH.

In fact, as CoinDesk reported last week, two large validators were responsible for over 40% of the new ETH blocks that were added in the hours post-Merge. Those validators are crypto exchange platform Coinbase and crypto staking service Lido Finance.

PoS Puts Ether in Regulators’ Crosshairs

But wait, there’s more. By converting to PoS, Ether risks being seen by U.S. regulators as a proof-of-security asset. Last Friday, the White House published its first-ever crypto regulatory framework, just a day after the merge was completed.

Gary Gensler, head of the Securities and Exchange Commission (SEC), has said on numerous occasions that PoW assets such as BTC are commodities, not securities, and should therefore not be regulated as securities.

That’s not the case with PoS, according to Gensler. Last week, the SEC chief commented that digital assets that allow investors to stake their holdings in exchange for new coins may qualify them as securities. The implication, of course, is that oversight of these coins may end up being just as rigorous as that of stocks, bonds, ETFs and other highly regulated assets. Besides ETH, other popular PoS cryptocurrencies include Cardano, Polkadot and Avalanche.

The May crash of Terra’s Luna coin, which triggered the collapse of overleveraged crypto lenders such as Celsius, Voyager and Three Arrows Capital, was a major driver of this year’s crypto winter. Lenders’ promises of high returns on investment have landed them in financial and legal hot water. It’s very important that the Ethereum Foundation not make the same mistakes and invite the same level of scrutiny.

As we like to say at U.S. Global Investors, government policy is a precursor to change. But the change, in this case, may not turn out to be favorable. Regulatory pronouncements could add to volatility within the nascent cryptocurrency industry.

In the table below, you can see that ETH was one of the most volatile assets for the one-day and 10-day trading periods as of August 31—more volatile, in fact, than BTC and shares of Tesla. I can’t help believing that’s due to investors’ apprehension of the merge and the regulatory uncertainty that surrounds it.

The DNA of Volatility

Standard Deviation For One-Year, As of August 30, 2022

ONE-DAYTEN-DAY
Gold Bullion±1%±3%
S&P 500±1%±4%
Bitcoin±4%±11%
Tesla±4%±13%
Ethereum±5%±15%
MicroStrategy±6%±19%

Energy FUD Contributed to Decision to Transition to PoS

If everything I’ve said up until this point is the case, why did Ethereum decision-makers choose to switch to PoS in the first place? Simply put, they folded under pressure from misleading charges that crypto mining, particularly BTC mining, consumes too much energy and is bad for the environment.

This is FUD, or fear, uncertainty and doubt. Yes, BTC mining requires electricity, but compared to nearly every other major industry—including finance and insurance, household appliances and gold mining—energy consumption is incredibly negligible, according to the Bitcoin Mining Council (BMC). What’s more, the BMC found that global BTC miners collectively use a higher sustainable energy mix than every major economy on the planet.

Supporters of the ETH Merge say that the move to PoS could cut the network’s energy usage by as much as 99.5%. None other than the World Economic Forum (WEF) praised the success of the merge last week, writing that crypto “has been waiting for a recalibration towards sustainability… for Web3 climate innovators, the new generation of environmental advocates, as well as U.S. climate efforts more broadly.”

But as many PoW proponents have rightfully pointed out, the GPUs that were previously used to mine ETH will likely now be used for other purposes post-merge, including mining other coins, high-performance computing and gaming. In reality, little to no energy will have been offset.

The question is: Who is funding the FUD about PoW and energy usage? It’s a complicated question.

Last week, a group of environmental activists, including Greenpeace and the Environment Working Group (EWG), announced that it plans to spend $1 million on a new campaign to encourage Bitcoin to follow ETH’s lead and move to PoS. The campaign, titled “Change the Code, Not the Climate,” falsely claims that BTC “fuels” the climate crisis.

This is the same covert tactic used by Russian president Vladimir Putin, who over the years has funded environmental groups and non-governmental organizations (NGOs) in the West in an effort to discredit and undermine the U.S. fracking industry.

Surprise! Gold Is Still One of the Best Performing Assets of 2022

Switching gears, I want to say a few words on gold. BTC’s analogue cousin hit its lowest price since 2020 last week even as inflation remains near 40-year highs and recession fears persist. As I write this, the yellow metal is trading at around $1,666 an ounce, approximately 19% off its peak in March this year.

Some investors may read this and jump to the conclusion that gold is no longer a valuable asset during times of economic and financial uncertainty, but they would be mistaken. Although gold is down for the year, it’s nevertheless outperforming most major asset classes including Treasury bonds, U.S. corporate bonds, the S&P 500 and tech stocks. The precious metal has therefore helped investors mitigate losses in other areas of their portfolio.

The latest report by the World Gold Council (WGC) also makes the case that gold could be a powerful investment in the face of a potential economic recession. The London-based group compared the performance of a number of asset classes during the past seven U.S. recessions going back to 1971, and it found that gold performed the best on average aside from government and corporate bonds.

That said, I still recommend a 10% weighting in gold, with 5% in bullion (bars, coins, jewelry) and 5% in high-quality gold mining stocks and funds. Remember to rebalance on a regular basis.

US Global Investors Disclaimer

The Bloomberg US Treasury Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury. Treasury bills are excluded by the maturity constraint but are part of a separate Short Treasury Index. The Bloomberg US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers. The NASDAQ-100 Index is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. The MSCI Japan Index is a free-float weighted equity JPY index. It was developed with a base value of 100 as of December 31, 1969. The MSCI Europe Index in EUR is a free-float weighted equity index measuring the performance of Europe Developed Markets. It was developed with a base value of 100 as of December 31, 1998. The MSCI USA Index is a free-float weighted equity index. It was developed with a base value of 100 as of December 31, 1969. Bloomberg Commodity Index is calculated on an excess return basis and reflects commodity futures price movements. The index rebalances annually weighted 2/3 by trading volume and 1/3 by world production and weight-caps are applied at the commodity, sector and group level for diversification. The S&P 500 is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

Standard deviation is a quantity calculated to indicate the extent of deviation r a group as a whole.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (06/30/22): Tesla Inc.

Detecting Deepfake Voice is Now Crucial to Security

Posted on by cpatches
Image Credit: Kenya Allmond (Flickr)

Deepfake Audio Has a Tell – Researchers Use Fluid Dynamics to Spot Artificial Imposter Voices

Imagine the following scenario. A phone rings. An office worker answers it and hears his boss, in a panic, tell him that she forgot to transfer money to the new contractor before she left for the day and needs him to do it. She gives him the wire transfer information, and with the money transferred, the crisis has been averted.

The worker sits back in his chair, takes a deep breath, and watches as his boss walks in the door. The voice on the other end of the call was not his boss. In fact, it wasn’t even a human. The voice he heard was that of an audio deepfake, a machine-generated audio sample designed to sound exactly like his boss.

Attacks like this using recorded audio have already occurred, and conversational audio deepfakes might not be far off.

Deepfakes, both audio and video, have been possible only with the development of sophisticated machine learning technologies in recent years. Deepfakes have brought with them a new level of uncertainty around digital media. To detect deepfakes, many researchers have turned to analyzing visual artifacts – minute glitches and inconsistencies – found in video deepfakes.

Audio deepfakes potentially pose an even greater threat, because people often communicate verbally without video – for example, via phone calls, radio and voice recordings. These voice-only communications greatly expand the possibilities for attackers to use deepfakes.

To detect audio deepfakes, we and our research colleagues at the University of Florida have developed a technique that measures the acoustic and fluid dynamic differences between voice samples created organically by human speakers and those generated synthetically by computers.

Organic vs. Synthetic voices

Humans vocalize by forcing air over the various structures of the vocal tract, including vocal folds, tongue and lips. By rearranging these structures, you alter the acoustical properties of your vocal tract, allowing you to create over 200 distinct sounds, or phonemes. However, human anatomy fundamentally limits the acoustic behavior of these different phonemes, resulting in a relatively small range of correct sounds for each.

In contrast, audio deepfakes are created by first allowing a computer to listen to audio recordings of a targeted victim speaker. Depending on the exact techniques used, the computer might need to listen to as little as 10 to 20 seconds of audio. This audio is used to extract key information about the unique aspects of the victim’s voice.

The attacker selects a phrase for the deepfake to speak and then, using a modified text-to-speech algorithm, generates an audio sample that sounds like the victim saying the selected phrase. This process of creating a single deepfaked audio sample can be accomplished in a matter of seconds, potentially allowing attackers enough flexibility to use the deepfake voice in a conversation.

This article was republished  with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Logan Blue, PhD student in Computer & Information Science & Engineering, University of Florida and Patrick Traynor, Professor of Computer and Information Science and Engineering, University of Florida.

Detecting Audio Deepfakes

The first step in differentiating speech produced by humans from speech generated by deepfakes is understanding how to acoustically model the vocal tract. Luckily scientists have techniques to estimate what someone – or some being such as a dinosaur – would sound like based on anatomical measurements of its vocal tract.

We did the reverse. By inverting many of these same techniques, we were able to extract an approximation of a speaker’s vocal tract during a segment of speech. This allowed us to effectively peer into the anatomy of the speaker who created the audio sample.

Deepfaked audio often results in vocal tract reconstructions that resemble drinking straws rather than biological vocal tracts. Logan Blue (The Conversation)

From here, we hypothesized that deepfake audio samples would fail to be constrained by the same anatomical limitations humans have. In other words, the analysis of deepfaked audio samples simulated vocal tract shapes that do not exist in people.

Our testing results not only confirmed our hypothesis but revealed something interesting. When extracting vocal tract estimations from deepfake audio, we found that the estimations were often comically incorrect. For instance, it was common for deepfake audio to result in vocal tracts with the same relative diameter and consistency as a drinking straw, in contrast to human vocal tracts, which are much wider and more variable in shape.

This realization demonstrates that deepfake audio, even when convincing to human listeners, is far from indistinguishable from human-generated speech. By estimating the anatomy responsible for creating the observed speech, it’s possible to identify the whether the audio was generated by a person or a computer.

Why this matters

Today’s world is defined by the digital exchange of media and information. Everything from news to entertainment to conversations with loved ones typically happens via digital exchanges. Even in their infancy, deepfake video and audio undermine the confidence people have in these exchanges, effectively limiting their usefulness.

If the digital world is to remain a critical resource for information in people’s lives, effective and secure techniques for determining the source of an audio sample are crucial.

Digerati Technologies (DTGI) – Our View Of The Proposed Transaction

Posted on by cpatches


Monday, September 19, 2022

Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries, T3 Communications (T3com.com), Nexogy (Nexogy.com), SkyNet Telecom (Skynettelecom.net) and NextLevel Internet (nextlevelinternet.com), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A vehicle for up-listing. The company announced its plans to enter a business combination with Minority Equality Opportunities Acquisition Inc. (MEOA), a Special Purpose Acquisition Company (SPAC). The transaction, which will result in an up-list to the NASDAQ, should allow the company easier access to the capital markets going forward and potentially accelerate its roll-up strategy.

Transaction details. The SPAC holds $128 million cash in trust. However, there will be SPAC shareholder redemptions prior to the deal closing. We conservatively assume 95% redemption, which would result in proceeds of an estimated $6.4 million in cash. At that redemption rate, Digerati shareholders and warrant holders will retain a 73% equity stake, with 21% going to sponsor shares and 6% going to SPAC shareholders.


Get the Full Report

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

How New Technology Reduces Inflation Data

Posted on by cpatches
Image Credit: Kanesue (Flickr)

Why Apple Can Hold the Line on iPhone Prices and Keep Getting Relatively Cheaper

Inflation in the U.S. is surging to near a 40-year high, with prices on food, fuel and pretty much everything seeming to rise more every month.

Smartphones may be an exception.

Apple, for example, recently announced its new versions of the iPhone and other gadgets, and turned a lot of heads when it said it wouldn’t charge more despite higher costs to make the devices.

This is puzzling because companies typically raise prices in line with inflation – or at least enough to cover the increased costs of making their products.

Consumer price data tells an even more befuddling story. The latest consumer price index data suggests smartphone prices are actually down 20.4% in August from a year ago, according to an index released on Sept. 13, 2022. That’s the biggest drop of any detailed expenditure item the Bureau of Labor Statistics tracks, and contrasts with the overall 8.3% increase in prices.

What’s going on?

As an economist teaching business school students, I enjoy exploring and explaining these economic puzzles. I believe there are two basic explanations – one for the data and another for Apple.

Why Consumer Prices on Smartphones Fell

The story behind the consumer price index data is easier to explain, if a bit technical.

The 20% drop over the past year isn’t unusual for smartphones. In fact, according to the index, they almost always go down from month to month. Since the end of 2019, smartphone prices have come down a whopping 40%.

And though smartphones are showing the biggest drop in the index, tech gear more broadly – from computers to smartwatches – also tend to fall over time. In the previous 12 months, televisions are down 19% and what the government calls information technology commodities are down 8.8%.

Part of the reason for their steady decline is found buried in the Bureau of Labor Statistics website. The consumer price index tries to measure a constant quality of goods and services in the economy. This means it seeks to track the price changes of the exact same set of goods and services each month. It’s comparing the price today with the price of the exact same thing a month or year ago.

For most goods, it’s not really an issue because their quality doesn’t change much over relatively small periods of time. For example, an apple you bite into today is pretty much the same as an apple you ate a year ago.

Smartphones and other technology-heavy gadgets are different. Because smartphones are constantly improving in quality – with the latest updates of an iPhone or Samsung Galaxy awaited breathlessly every year – it is more difficult to ensure you’re comparing prices of products of the exact same quality.

For rapidly improving items, the Bureau of Labor Statistics uses what are called “hedonic regression models” to estimate these changes in quality over time. Hedonic models measure the same amount of satisfaction. While this sounds complicated, the goal is simple: to figure out how much each new smartphone feature changes the price.

As a consumer, you are essentially doing this whenever you decide whether it is worth paying the extra money for that marginally better camera or extended battery life when buying a new phone.

And so, the 20.4% drop doesn’t mean you’re going to pay less for a new smartphone. But it does suggest you’re getting 20% more bang for your buck versus the same phone a year earlier. Whether it’s worth it is another question.

Why Apple Kept Prices Flat

That brings us to why Apple didn’t change its prices, even as the quality of the iPhone improved and supply chain costs went up.

Beyond the quality issues, one of the main ways supply chain problems are affecting phones is in the shortage of computer chips. If there is any product dependent on computer chips, it is smartphones. The shortage has resulted in delays to produce cars, trucks and many other consumer items.

The shortage has also increased the price of semiconductor parts. The U.S. government’s producer price index shows the price of semiconductor parts like chips and wafers steadily rising since the COVID-19 pandemic began in 2020, after falling for years. Chip prices are likely going up 20% in the next year.

For these and other reasons, analysts were expecting Apple to increase its prices.

Instead, Apple released its latest iPhone models at the same prices as the last two models, or US$799 for the iPhone 14 and $999 for the pro version. Keeping prices constant during inflationary times means iPhones are getting relatively cheaper.

So why isn’t Apple increasing prices? Is it just being kind to its customers, who have fueled tremendous profits for the company over the past decade?

Probably not.

With a gross profit margin of over 40% – meaning that’s how much it makes over the cost of producing all its products and services – Apple can probably afford to absorb increased chip and other component costs.

My best guess, since the smartphone market is fairly competitive, is that Apple is keeping prices the same to build market share in the U.S. – beyond the record 50% it recently hit – so the iPhone remains one of the best-selling smartphones.

So while the cost of almost everything we buy is rising, you can take some comfort in knowing at least one item is getting both better over time and not succumbing to an inflationary price spiral.

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Jay L. Zagorsky, Clinical associate professor, Boston University.

Proof-of-Stake Vs. Proof-of-Work

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Image Credit: QuoteInspector.com (Flickr)

What is Proof-of-Stake? A Computer Scientist Explains a New Way to Make Cryptocurrencies, NFTs and Metaverse Transactions

Proof-of-stake is a mechanism for achieving consensus on a blockchain. Blockchain is a technology that records transactions that can’t be deleted or altered. It’s a decentralized database, or ledger, that is under no one person or organization’s control. Since no one controls the database, consensus mechanisms, such as proof-of-stake, are needed to coordinate the operation of blockchain-based systems.

While Bitcoin popularized the technology, blockchain is now a part of many different systems, enabling interesting applications such as decentralized finance platforms and non-fungible tokens, or NFTs.

The first widely commercialized blockchain consensus mechanism was proof-of-work, which enables users to reach consensus by solving complex mathematical problems. For solving these problems, users are commonly provided stake in the system. This process, dubbed mining, requires large amounts of computing power. Proof-of-stake is an alternative that consumes far less energy.

At its core, blockchain technology provides three important properties:

Decentralized governance and operation – the people using the system get to collectively decide how to govern and operate the system.

Verifiable state – anyone using the system can validate the correctness of the system, with each user being able to ensure that the system is currently working as expected and has been since its inception.

Resilience to data loss – even if some users lose their copy of system data, whether through negligence or cyberattack, that data can be recovered from other users in a verifiable manner.

The first property, decentralized governance and operation, is the property that controls how much energy is needed to run a blockchain system.

Voting in Blockchain Systems

Blockchain systems use voting to decentralize governance and operation. While the exact mechanisms for how voting and consensus are achieved differ in each blockchain system, at a high level, blockchain systems allow each user to vote on how the system should work, and whether any given operation – accepting a new block into the chain, for example – should be approved.

Traditionally, voting requires that the identity of the people casting ballots can be known and verified to ensure that only eligible people vote and do so only once. Some blockchain systems allow users to present a digital ID to prove their identity, enabling voting with negligible energy usage.

However, in most blockchain systems, users are anonymous and have no digital ID that can prove their identity. What, then, stops an individual from pretending to be many individuals and casting many votes? There are several different approaches, but the most used is proof-of-work.

In proof-of-work, users get votes based on the amount of computational power they have in proportion to other users. They demonstrate their ownership of this computational power by solving difficult mathematical problems. If one user can solve twice as many problems as another user, they have twice the computational power as other users and get twice as many votes.

However, solving these mathematical problems is extremely energy intensive, leading to complaints that proof-of-work is not sustainable.

Proof-of-Stake

To address the energy consumption of proof-of-work, another way to validate users is needed. Proof-of-stake is one such method. In proof-of-stake, users validate their identities by demonstrating ownership of some asset on the blockchain. For example, in Bitcoin, this would be ownership of bitcoins, and in Ethereum, it is ownership of Ether.

Though this does require users to temporarily lock their assets in the blockchain for a period of time, it is far more efficient because it requires negligible energy expenditure. By the company’s estimation, moving from proof-of-work to proof-of-stake will reduce Ethereum’s energy consumption by 99.95%.

Ethereum’s ‘Merge’

This improved energy efficiency is why many blockchain systems intend to transition away from proof-of-work to proof-of-stake. Ethereum plans to make this change during the week of Sept. 15, 2022. This is known as the Merge. During this merge, operations will shift from being voted on using proof-of-work to being voted on using proof-of-stake. At the completion of the merge, only proof-of-stake will be used to vote on transactions.

The hope is that this will set up Ethereum to be sustainable for the foreseeable future.

This article was republished  with permission from  The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Scott Ruoti, Assistant Professor of Computer Science, University of Tennessee

Planned Changes for a Greener Blockchain Leaves Uncertainties

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Image Credit: Edwin Chewin (Flickr)

The Ethereum Merge Could Kick Off a Transformation in Crypto’s Battered Reputation

Cryptocurrencies might still be a very long way from their highs of 2021, but some of the major ones have staged some decent recoveries in the past couple of months. Notably ether (ETH), the second largest cryptocurrency after bitcoin, is trading at almost $US1,700 (£1,463) at the time of writing, having dropped as low as $US876 in mid-June.

Ether, which was created by Canadian/Russian programmer Vitalik Buterin, is the cryptocurrency used for transactions on Ethereum, the leading platform on which developers can applications using blockchain technology.

Blockchains are online ledgers that run without been controlled by any single company. Much of these applications revolve around smart contracts, which are automated contracts that remove the need for intermediaries such as lawyers and are seen as having huge potential for the future.

Ether Price ($US)

Source: Trading View

One of the main catalysts for ether’s rebound has been the Ethereum merge, a huge project to change the way the underlying blockchain operates. Where transactions on Ethereum are currently validated using an energy-intensive system known as proof-of-work (PoW), in which lots of very powerful computers compete to solve complex mathematical puzzles, from around September 15 it will shift to a new system known as proof of stake (PoS).

PoS basically means that transactions on the blockchain will be validated not by all these computations but by a network of investors whose commitment is demonstrated by the fact that they own at least 32 ether (yours for about $US54,000).

The idea is that this gives them an economic incentive to enhance the security of the network, and are therefore very unlikely to try and sabotage it. Whereas bitcoin transactions all depend on PoW, lots of newer cryptocurrencies use PoS, including Ethereum rivals such as Solana and Cardano.

Going Green

When the Ethereum merge takes place, power consumption on the blockchain will be reduced by 99%. Since it is currently the most used blockchain in terms of transactions, this will save a huge amount of electricity each year, corresponding to Chile’s power consumption.

As a result of the merge, some analysts expect ether to overtake bitcoin as the leading crypto in terms of the total value of all the coins (in crypto circles this is referred to as the “flippening”). Ether is currently worth just over US$204 billion, while bitcoin is worth US$396 billion.

Bitcoin vs Ether

Bitcoin = yellow, Ether = blue. Trading View

Until now, cryptocurrencies and bitcoin in particular have suffered from a bad reputation. Bitcoin was initially conceived with the egalitarian goal of allowing investors access to a financial system with no need for banks and with money that isn’t controlled by countries. It has been championed for its ability to enable billions of people without bank accounts to transact online, and to facilitate things like microfinance and ultra-cheap cross-border trading.

Yet bitcoin has come to be associated with environmental degradation and criminal activities. The mainstream media has endlessly linked the leading cryptocurrency – and by extension the whole space – with money laundering, online drug dealing, Ponzi schemes and exchange hacking.

Netflix documentaries have further reinforced this negative public image. Recent scandals in the crypto world, such as the fall of Ethereum rival Luna and the bankruptcy of Celsius and other crypto lenders, have not helped either.

One major consequence has been that major financial institutions like investment banks and pension funds have been cautious of ploughing money into this space, despite the leap forward in technology that blockchains represent.

But if the most widely adopted crypto platform successfully shifts to PoW in the coming days, many believe that this will overcome the biggest institutional objection and see much more money flowing into the space (there are already early signs, such as Fidelity’s new crypto fund for retail investors). This is likely to accelerate the global regulatory framework that would minimise undesirable activities.

By closing down the environmental objections to crypto, other advantages to ether are likely to come to the fore. The merge will offer a return to investors in the form of rewards in exchange for locking up their money for a period of time (“staking”).

Although you need to stake 32 ether to become one of the network’s validators, numerous companies have set up systems to enable smaller investors to pool their money so that they can participate. For example, Binance, the world’s largest crypto exchange, offers investors 6% annual percentage yield for pooled staking on ether.

Staking will therefore create a win-win situation with guaranteed returns and a very liquid system that makes it easy for people to move their money in and out of ether. This will further enhance the appeal of ether and PoS cryptos in general.

This could help to accentuate other positives around crypto, another of which is humanitarian donations. When Russia invaded Ukraine, for instance, the Ukrainian government called for donations in bitcoin and ether to support its efforts against invaders. This quickly attracted substantial amounts of money.

Tonga was similarly successful with a campaign after its volcanic eruption earlier this year. By being able to cross borders easily and cheaply, cryptocurrencies are the ideal vehicle for international donations.

Lingering Uncertainties

All that said, it is uncertain how the Ethereum blockchain will function after the merge in terms of transaction speeds and costs. One major problem with Ethereum in the past has been that transactions have been ludicrously expensive, sometimes running to thousands of US dollars at peak times in 2021.

The developers of the Ethereum Foundation do not expect the merge to make a big difference in these respects (currently “gas” fees are averaging between $US1 and $US4 per transaction depending on which platform you are using). Much more important is likely to be another shift in ethereum’s journey to “Ethereum 2.0” known as sharding, which is due to happen in 2023.

We will also have to wait and see how smooth the merge is. Synchronisation and update bugs could see problems such as validators disconnected from the blockchain. Negative stories like these could see investors staying away for fear of instability. But on the whole, while the merge will not be a miraculous event, it could help improve the image of cryptocurrencies and attract institutional and retail investors. At a time when sustainable investing is increasingly high priority, the ether merge and its attractive returns have the potential to put ether at the top of the list.

This article was republished  with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Jean-Philippe Serbera, Senior Lecturer in Banking And Financial Markets, Sheffield Hallam University.

Release – Digerati Technologies to List on NASDAQ via Business Combination with Minority Equality Opportunities Acquisition Inc.

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Research, News, and Market Data on DTGI

Transaction Results in $105 Million Enterprise Valuation for Digerati Technologies

SAN ANTONIO, TX (GlobeNewswire) – September 6, 2022 – Digerati Technologies, Inc. (OTCQB: DTGI) (“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, is pleased to announce its signing of a definitive business combination agreement with Minority Equality Opportunities Acquisition Inc. (NASDAQ: MEOA) (“MEOA”), which is the first Minority led special purpose acquisition company to list on NASDAQ with the mission of executing a business combination with a minority owned, led or founded business.

Highlights of the transaction include:

  • Transaction to result in Digerati becoming a listed company on NASDAQ and delisting from OTC Market.
  • Combined company to have an initial equity value of approximately $228 million translating into an enterprise value of approximately $145 million, assuming no redemptions by MEOA stockholders.
  • MEOA currently has approximately $129.9 million cash in trust as of September 2, 2022. 
  • New capital and being a NASDAQ listed company is expected to provide Digerati with flexibility for additional strategic and accretive acquisitions in the UCaaS sector.
  • The current Digerati management team will continue to operate the business.
  • The current Digerati Board of Directors will remain with one additional director to be appointed by the Company and Shawn D. Rochester, CEO of MEOA, joining the Company’s Board of Directors at the closing of the transaction.
  • All existing Digerati shareholders will receive 100% of their equity in the pro forma company.

Arthur L. Smith, Chief Executive Officer of Digerati, stated, “This business combination that results in a NASDAQ listing for our Company positions us for continued growth in a rapidly expanding and highly-fragmented market. We believe being a NASDAQ listed company, along with our financial partnership with Post Road Group, will facilitate acceleration of our M&A strategy in a market with a healthy pipeline of acquisition candidates. This transaction will also contribute to organic growth as we continue providing small to medium-sized businesses with robust solutions and superior customer service tailored for this market segment. We believe this is an ideal transaction for current Digerati shareholders since it avoids a reverse stock split that is customary under a re-IPO event associated with an uplist to NASDAQ or NYSE.”

Shawn Rochester, Chairman and Chief Executive Officer of MEOA, said, “Digerati is well-positioned as an emerging provider of UCaaS solutions to the small and medium-sized business market. The proposed merger with MEOA capitalizes Digerati and, with improved access to capital, enables the Company to continue with its organic growth and acquisition strategy. The Digerati team has demonstrated operational and M&A expertise over the past few years and this transaction will better equip them to continue on their acquisitive path of increasing shareholder value. This proposed merger is also consistent with MEOA’s mission, vision and purpose because (1) in addition to its operational and M&A expertise, Digerati is a minority founded and led business with a very diverse management team (with its CEO, CFO and EVP being of Hispanic ethnicity) and an employee base that is almost 50% minority, (2) it also provides access to capital at scale to help unleash transformative growth for a minority led and founded business that has assembled a great management team, developed great products and solutions, and staked out a strong competitive position in the marketplace, and (3) Digerati’s UCaaS platform has the ability to help empower to over 20 million small businesses in America that are run by minorities and women through its first-class suite of communication products.”

Transaction Overview

The combined company is expected to have a total pro forma equity value of approximately $228 million translating into an enterprise value of approximately $145 million, with the proposed business combination to provide access to capital of up to approximately $121 million from the cash held in trust by MEOA, assuming no redemptions from MEOA stockholders. All references to available cash from the trust account and retained transaction proceeds are subject to any redemptions by the public stockholders of MEOA and payment of transaction fees and expenses. As part of the transaction, all Digerati shares owned by Digerati’s existing equity holders will be converted to common stock of the pro forma company.

The transaction, which has been approved by the Boards of Directors of both of Digerati and MEOA, is expected to close in the fourth quarter of CY 2022. The transaction remains subject to NASDAQ approving MEOA’s initial listing application in connection with the merger, approval by both MEOA and Digerati shareholders, as well as other customary closing conditions.

Additional information about the proposed transaction, including a copy of the business combination agreement, will be provided in a Current Report on Form 8-K to be filed by both Digerati and MEOA with the Securities and Exchange Commission (the “SEC”).

Advisors

Maxim Group LLC acted as financial advisor and Lucosky Brookman LLP acted as legal counsel to Digerati in connection with the transaction. PGP Capital Advisors, LLC and Vaughan Capital Advisors, LLC acted as financial advisors to MEOA, and Pryor Cashman LLP acted as legal counsel for MEOA.

About Minority Equality Opportunities Acquisition Inc.

Minority Equality Opportunities Acquisition Inc. is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, organized under the laws of the Delaware and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with companies that are minority owned, led or founded.

About Digerati Technologies, Inc.

Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries NextLevel Internet (NextLevelinternet.com), T3 Communications (T3com.com), Nexogy (Nexogy.com), and SkyNet Telecom (Skynettelecom.net), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including, cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™. For more information, please visit www.digerati-inc.com and follow DTGI on LinkedIn, Twitter and Facebook.

INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

No Offer or Solicitation

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Important Information and Where to Find It

This press release is being made in respect of the proposed business combination transaction involving MEOA and Digerati. The parties intend to file a registration statement on Form S-4 (or such other form as they might determine to be applicable) with the SEC, which will include a proxy statement for MEOA and Digerati shareholders and which will also serve as a prospectus related to offers and sales of the securities of the combined entity. MEOA will also file other documents regarding the proposed transaction with the SEC. A definitive proxy statement/prospectus will also be sent to the stockholders of MEOA and Digerati, seeking required stockholder approval. Before making any voting or investment decision, investors and security holders of MEOA and Digerati are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available, and any other relevant documents filed with the SEC, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. The documents filed with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov. 

In addition, the documents filed with the SEC may be obtained free of charge from MEOA’s website at https://www.meoaus.com and from Digerati’s website at https://digerati-inc.com.

Participants in the Solicitation

MEOA, Digerati and certain of their respective Directors and Executive Officers may be deemed to be participants in the solicitation of proxies from stockholders, in favor of the approval of the merger. Information regarding MEOA’s and Digerati’s Directors and Executive Officers and other persons who may be deemed participants in the solicitation may be obtained by reading the registration statement and the proxy statement/prospectus and other relevant documents filed with the SEC when they become available. Free copies of these documents may be obtained as described above.

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the applicable securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. 

These forward-looking statements include, but are not limited to, statements regarding the terms and conditions of the proposed business combination and related transactions disclosed herein, the timing of the consummation of such transactions, assumptions regarding shareholder redemptions and the anticipated benefits and financial position of the parties resulting therefrom. These statements are based on various assumptions and/or on the current expectations of MEOA or Digerati’s management. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor or other person as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of MEOA and/or Digerati. These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the amount of redemption requests made by MEOA’s public shareholders; NASDAQ’s approval of MEOA’s initial listing application; changes in the assumptions underlying Digerati’s expectations regarding its future business; the effects of competition on Digerati’s future business; and the outcome of judicial proceedings to which Digerati is, or may become a party.

If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Digerati and MEOA presently do not know or currently believe are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect expectations, assumptions, plans or forecasts of future events and views as of the date of this press release. Digerati and MEOA anticipate that subsequent events and developments will cause these assessments to change. However, while Digerati and/or MEOA may elect to update these forward-looking statements at some point in the future, each of Digerati and MEOA specifically disclaims any obligation to do so, except as required by applicable law. These forward-looking statements should not be relied upon as representing Digerati’s or MEOA (or their respective affiliates’) assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Facebook: Digerati Technologies, Inc.

Twitter: @DIGERATI_IR

LinkedIn: Digerati Technologies, Inc.

Investors

ClearThink

Brian Loper

bloper@clearthink.capital

(347) 413-4234 

Information Services Group Inc. (III) – 10b5-1 Plan for CEO Connors

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Tuesday, September 6, 2022

Information Services Group – 0b5-1 Plan for CEO Connors

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

10b5-1 Plan. On August 31, 2022, Michael P. Connors, Chairman and Chief Executive Officer of Information Services Group, Inc. entered into a written stock selling plan in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, to sell a limited number of shares of the Company’s common stock. Rule 10b5-1 provides guidelines for officers, directors and other insiders to prearrange sales of securities in a manner that avoids concerns about initiating stock transactions while in possession of material nonpublic information.

Details. The Plan allows for the sale of a maximum of 1,200,000 shares of the Company’s common stock, commencing on October 3, 2022 and continuing until all such shares are sold or March 15, 2023, whichever occurs first. According to the 8-k filing, Mr. Connors is currently the Company’s second largest shareholder, beneficially owning approximately 10.9% of the Company’s total outstanding common stock as of August 31, 2022. A Form 4 filed August 3rd, indicates Mr. Connors held nearly 5.7 million III shares.

Get the Full Report

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Higher Education Among First to Embrace the Metaverse

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Image Credit: Lilith Von Hexem (Flickr)


Six Benefits that the Metaverse Offers to Colleges and Universities

Even though it’s unclear what exactly the metaverse is and whether it even exists, colleges and universities have jumped onto the metaverse bandwagon. They have augmented in-person and remote video learning with features such as gamified interactive virtual worlds, virtual reality and mixed reality.

In one of the largest efforts thus far, 10 U.S. colleges and universities have teamed up with U.S. technology company Meta and Irish virtual reality platform Engage to create 3D digital versions of their campuses, known as a metaversity. Students will engage in learning wearing immersive virtual reality headsets.

This article was republished  with
permission from   The Conversation, a
news site dedicated to sharing ideas from academic experts. It represents the
research-based findings and thoughts of  Nir Kshetri,
Professor of Management, University of North Carolina – Greensboro.

In my recent research, I have examined the metaverse and how it affects organizations and societies. I see six benefits that the metaverse offers to colleges.

 

1. Makes educational resources affordable

Colleges are facing budget constraints and lack access to resources necessary for learning. The metaverse can help them overcome such constraints.

For example, Nashville, Tennessee-based Fisk University hasn’t purchased cadavers due to high costs and maintenance challenges. The university is enhancing its pre-med program with virtual reality cadavers, which are a more affordable alternative.

In the virtual reality lab, a human heart can be pulled out from a cadaver’s chest cavity. It creates the sense that students can feel the weight of the heart in their hands and examine it. They can enlarge it. The class sees and touches the ventricle walls. Students can compare different hearts to understand the results of health decisions that humans made when they were alive. They engage in discussion and agree on the correct diagnosis.


Fisk University is using virtual cadavers for its pre-med program. Fisk University

Virtual cadavers don’t degrade and are easy to maintain. Additional features, such as surgical procedures and comparative learning between humans and animals, can be added over time.

 

2. Enhances student performance

Virtual training provides an effective means of visually demonstrating concepts with step-by-step instructions to illustrate tasks. They provide opportunities for learning by doing. Immersion in games can increase  engagement in learning activities.

Atlanta’s Morehouse College has piloted a metaversity that involves courses in world history, biology and chemistry. The college found that virtual reality classes increased student satisfaction, engagement and achievement compared to traditional and online formats and increased students’ academic performance. For instance, the virtual reality world history class had a 10% increase in students’ GPAs compared with the same class taught via Zoom and face-to-face the year before.

 

3. Makes virtual interactions more like real ones

The internet performs well for sending emails, spreadsheets and PDFs from one device to another to be reviewed or modified independently and asynchronously. It wasn’t built for person-to-person type live and interactive experiences, especially with many participants. Likewise, virtual spaces such as Zoom mostly allow a single conversation. In physical events, participants can move fluidly from one conversation to another.

Some universities are using metaverse technologies to overcome limitations of the internet and video meeting tools. Metaverse-related technologies bridge the gap between real-life and virtual interactions by allowing people to interact more naturally.

Professors and students at the University of Chicago and the University of Pennsylvania use virtual meeting space Gather, which mimics features of real-life interactions. Users create avatars and navigate a virtual map that represents the physical environment, such as a building. The proximity chat feature make users feel that they are running into other students and professors in the hall. Users see and hear video and audio feeds of participants close to them. When they move away, the sounds cannot be heard and the video disappears. Unlike on Zoom, users aren’t forced to be in a single conversation. They can move fluidly between conversations as speakers or listeners.

The University of Pennsylvania’s computer and information science department used Gather to recreate Levine Hall, which is home to the department. The virtual building’s layout mimics classrooms, laboratories, elevators,  stairwells and other features of Levine Hall. The student-run hub of technological innovation, Weiss Tech House, has also been recreated virtually.

The Gather space accommodates 200 students and supports multiple conversations simultaneously. There are six virtual spaces that correspond the building’s six floors. Small groups can branch off into subgroups to work on tasks or engage in conversation.

 

4. Enables experimentation with hard-to-create phenomena

In some situations, learning in real-world environments, such as those involving chemical experiments and flying airplanes, is risky. In such cases, special equipment, such as virtual reality headsets, software and special gloves for haptic responses, can create immersive simulations of real environments. Learners feel as though the digital world is real.

These technologies can create scenarios that are impossible or impractical to create in the real world.

In Fisk University’s planned in-person history courses, students visit historically significant locations wearing virtual reality headsets. They include the Montgomery Bus Boycott; the Edmund Pettus Bridge in Selma, Alabama; the Lorraine Motel in Memphis, Tennessee; and the National Mall in Washington.

In chemistry classes, virtual reality allows visualization of how atoms are arranged in a protein. This insight helps pharmaceutical drug research.

 

5. Increases accessibility for remote students

Big gaps exist in higher education between rural and urban areas.

In 2015, 18% of men and 20% of women 25 and older living in rural areas of the U.S. had earned at least a bachelor’s degree compared with 32% and 33%, respectively, in urban areas.

Metaverse technologies can close this gap by making educational resources accessible to remote students. South Dakota State University expects that its metaversity will help reach the state’s rural students.


6. Attracts a young demographic

Children and young adults are the dominant populations in well-known metaverses, which are in the gaming sector.

About half of Roblox players are under 13 and 66% are under 16. Likewise, two-thirds of Fortnite’s players in 2021 were young adults. Compared with older generations, this demographic is more experience-driven and sees interesting and exciting learning opportunities in the metaverse.

Universities are using the metaverse to attract them. Southwestern Oregon Community College’s leaders think that its metaversity will increase enrollment. This is because higher proportions of younger generations, such as Generation Z, grew up with virtual reality technologies.

Younger generations show a higher level of interest and involvement in the metaverse. In a survey conducted in the U.S. in March 2022, 64% of Gen Z respondents were interested in having a digital avatar and 56% were interested in attending a music event in the metaverse. The proportions were 28% and 25% for baby boomers.

Unique experience provided by metaverse technologies, such as virtual reality, is thus appealing to younger generations and can become a key tool to attract them to universities.


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