By Edward Sylvan, CEO of Sycamore Entertainment Group (OTC: SEGI)

I find myself at a crossroads where I must take steps to move SEGI forward. To do that requires new capital, but I want to do it in such a way that does not further erode shareholder confidence caused by shareholder dilution.

I have attempted to push projects forward, only to be held back by a lack of funding to complete what, in the end, turned out to be some fantastic project ideas.

I know firsthand how difficult it can be for smaller public companies to raise capital without turning to convertible notes or diluting existing shareholders.

I’ve watched millions of dollars trade in SEGI shares over the years, while the company itself received none of that money.

To address this situation, I’m developing a plan to voluntarily return a portion of my personally held SEGI shares to the company’s treasury, with the intention of making those shares available for future direct investment into SEGI by new or existing shareholders.

The plan involves two parts.

1) Once the shares are back in the treasury, I’ll focus on how current financing exemptions or products and the SEC’s test-the-waters rule might help determine whether there is enough interest to support a direct investment program.

2) To complete any direct investment component strategy, I will connect a public offering (subject to approval by the appropriate regulators) to a Direct Stock Purchase Program (DSPP) using our transfer agent, so anyone can purchase shares directly from the company instead of going to the open market.

If any new funds are raised, they will be used to pay off or settle existing debt, initiate an audit, and as working capital to advance existing opportunities we currently have on the table.

My objective is to attract new capital without increasing the company’s outstanding share count, increasing the authorized shares, or relying on convertible notes or any other type of toxic instrument.

This initiative is part of a broader approach I’ve been developing called Capital Formation Trading (CFT).

The idea is to create a system where management and shareholders work together to build the business rather than leaning on trading activity in the secondary market so early in the cycle.

Using CFT as the framework, my hope is to educate investors that, instead of trading shares back and forth amongst one another in the open market hoping for a quick profit, instead, to learn how to access much larger investors who are willing and able to buy stock in companies much further along in the value chain.

In the process, I want to work toward restoring trust between shareholders and management to establish a more sustainable approach to financing.

This leads to the company management having more of an opportunity to focus on growing its business and to offer shareholders an alternative way to invest high risk capital.

As AI becomes a bigger part of our daily lives, many tasks have become easier and less expensive to compete. The flip side of that equation is businesses face stiffer competition, so speed of execution has become more crucial in growing than ever before.

As CEO of Sycamore Entertainment Group Inc, I am fortunate to have access to opportunities that, if completed, could serve to move SEGI forward in a positive fashion.

I look forward to providing updates on the plan on Social Media as I work on making it a reality.