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Medient Studios Announces Yellow Financial Update(June 06, 2014)
EFFINGHAM COUNTY, GA -- (Marketwired) -- 06/06/14 -- Medient Studios, Inc. (PINKSHEETS: MDNT) ('Medient') announced today that in preparation for the domestic and international release of Yellow, directed by Nick Cassavetes, the company has made substantial progress in paying off the debt associated with the production and acquisition of the movie.
Most of the film's investors and related debts have now been paid in full. These include the Screen Actors Guild ($311,000), film investor Pankaj Rajani ($660,000), and Indion Finance, LLC ($600,000). The sole cash loan facility on the film was secured from AMAG, Inc. A total of $812,236 out of a principal of $1,000,000 has been paid to AMAG. The balance of the principal and accrued interest is $551,432. Of this, a sum of $250,000 will be deferred until after the release of the film. The film's principal services creditor, the Prime Focus Group has been paid $1,125,000 out of the total outstanding invoice of $2,500,000. Prime Focus has also agreed to defer $1,000,000 until after the film has been released. The two other notes on the film -- Tommee May ($180,000) and Derreck Lee ($720,000) are not due until after the release of the film. In summary, $3,082,236 has been paid, $676,000 is to be paid prior to release, and the balance of $2,150,000 has been deferred to be paid out of film revenues.
Manu Kumaran, Chairman of the Board, stated, "Yellow is a ground breaking film that we can all be very proud of. It was absolutely necessary to eliminate the multiple debts on the film so that the film can be released this summer. As a result of paying off the majority of the investors the bulk of the revenues generated by Yelllow will to come directly to our treasury." Mr. Kumaran added, "We will reinvest these funds into new productions, so that any future dilution related to film production should be reduced or eliminated."
Medient Studios, Inc. (PINKSHEETS: MDNT) ('Medient') (www.medient.com) is an entertainment content creation company with a strong presence in North America, Europe and India. Medient's management team has approximately 150 years of experience in the motion picture industry and is responsible for producing and/or financing over 250 movies. Medient is realigning the content creation process to enable efficiencies of scale and eliminate process waste by building a fully integrated movie and electronic game production facility as part of its Studioplex on a 1,560-acre property in Effingham County, Georgia. Once operational this production facility will be the largest of its kind in the United States.
Safe Harbor Statement
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements related to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned or required capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of, the company. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, and other risks and uncertainties described in the Company's periodic filings with the Securities and Exchange Commission.
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