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Digital Donations plans $13 million IPO by shareholders

Digital Donations Technologies Inc. of Melville has filed

Digital Donations Technologies Inc. of Melville has filed government documents for an initial public offering to raise up to $13.1 million. Photo Credit: AP / Mark Lennihan

Digital Donations Technologies Inc., whose digital crowdfunding systems help nonprofits raise money, has filed government documents for an initial public offering to sell up to $13.1 million in stock.

The Melville company’s prospectus says it is seeking to sell 8.75 million shares of common stock for $1.50.

All the proceeds would go to the selling shareholders and none to the company. Alon Kapen, a securities lawyer with Farrell Fritz in Uniondale, said the IPO was unusual in that only shareholders are selling shares to the public.

After the IPO, the 18-year-old company plans to list its stock on the OTC Bulletin Board or the OTC Markets Group, formerly known as the “pink sheets.”

The company’s systems solicit donations for nonprofits as consumers withdraw money from automated teller machines or make debit or credit card payments at restaurants and retail stores.

The company’s myGIV mobile app can pinpoint users’ locations to deliver rewards offered by merchants. Its CrowdGIV mobile app lets nonprofits set up fundraising campaigns. The GoFundMe app lets individuals raise funds for personal needs.

The American Cancer Society, American Heart Association, National Multiple Sclerosis Society, Humane Society of the United States and the Alzheimer’s Foundation use Digital Donations’ ATM fundraising technology, according to Tuesday’s Securities and Exchange Commission filing.

The company has two executives, president Keith Orlean, 59, and chief executive Jeffrey Marder, 59. Its Digital Donations subsidiary has three executives, Orlean, Marder and vice president of operations Kenneth Murphy Jr., 64.

For the six months ended June 30, the company had a net loss of $157,072 on revenue of $58,783. As of June 30, the company had cash on hand of $3,952.

No underwriters or selling agents have been hired to run the IPO, the filing said.


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