DigitalTown, Inc. filed a plan of reorganization in the US Bankruptcy Court on November 27, 2020. As per the plan filed, administrative expense claims, priority tax claims estimated to be less than $1,000, statutory fees, prospective quarterly fees and priority claims, shall be paid in cash. Non-priority unsecured claim shall receive 20 shares of common stock for each dollar of debt, additionally, they will receive one class C preferred share per dollar of debt, which entitles them to receive pro rata distributions of disposable income through the term of the plan. Certain equity holders of the debtor shall receive one class C preferred share for each dollar of debt that was previously converted to common stock, which will entitle them to receive pro rata distributions of disposable through the term of the plan. Other equity holders of the debtor shall retain their equity. The plan shall be funded through cash, issue of common stock and class C preference shares.
DigitalTown, Inc. provides turn-key hosted solutions to power a platform for government entities, citizens, and merchants. The Company provides an alternative to multi-national search engines and marketplaces, saving merchants money. The Company's DigitalTown platform helps city officials and local merchants manage a smart city for Web and mobile devices and provides residents and visitors with access to content, community and commerce. The DigitalTown platform supports online and mobile communities. It enables commerce and fulfillment in local communities, thereby helping residents to buy locally while equipping merchants to sell locally. The Company's wholly owned subsidiary is Comencia Inc.