What do Dwight Howard and Justin Bieber have in common?
What do Dwight Howard and Justin Bieber have in common? Well that’s easy. They both are investors in an applications software company that may be close to going under. How did you not know that??
According to the South Florida Business Journal, Dwight Howard recently made a $100,000 investment into a penny stock company by the name of Options Media Group Holdings. In consideration for the 100K bridge loan, Dwight received a warrant to purchase 10 million shares of OPMG stock valued at .01 cents.
Back in May, pop phenom Justin Bieber signed a 3-year endorsement deal with the company that brought him 121.2 million shares of Options Media Group stock at a penny a share, representing 16.4 percent of the company. The company’s website has Bieber tattooed all over it. Could a promo featuring the Biebs and D12 be coming soon?! The world is collectively holding their breath.
The stock has a 52-week hight of .09 cents and opened trading this morning at just over .016 a share. While clearly Dwight sees promise in the company, the accountants for OPMG see otherwise. The South Florida Business Journal cites in their article that
Options Media’s third quarter SEC filing noted that its accountants have ‘substantial doubt about its ability to continue as a going concern.”
The premise behind the company is a software called PhoneGuard that prevents you from texting and driving. The software is available free through the company website. Although the 3rd quarter SEC filing may have not been overly positive, the recent investments of Dwight Howard and Cole Aldrich plus the expansion of their Board of Directors, are all positive signs.
It’s probably a smart decision overall for Dwight Howard to hop onto the Bieber media train. As long as the company stays in business, Dwight will likely earn a profit. Even more important, he gets to call Bieber a business partner! An unofficial projection of future revenue directly tied to Howard’s business relationship with Bieber ranges from $1M to an infinite number of star-gazed tween fans.
P.S. I apologize to anyone who was hoping this post would be about acting, singing, rapping, dancing, cuddling, pregnant girls, Usher, basketball or any other topic that would have been more intersting than stocks.