VANCOUVER, BC / ACCESSWIRE / May 14, 2019 / The Wonderfilm Media Corporation (TSXV: WNDR) ('Wonderfilm' or the 'Company') is excited to announce it has entered a joint venture agreement with the UK's 101 Films Limited ('101') to launch 'Wonderfilm Global' a new film, television and media foreign sales/distribution company. Wonderfilm will acquire 51% ownership in the joint venture structure and immediately starts attaching its own productions to Wonderfilm Global.
Wonderfilm Global officially launches at the Cannes Film festival this week.
In simple business terms, the joint venture represents a significant opportunity for Wonderfilm changing how the Company does business by providing direct control over the exploitation of its slate of films, by growing the movie library and - gaining a new revenue stream from fees charged to other producers to distribute their films.
The intention is to have distribution margins remain in-house that previously went to other companies without any level of risk, since most Wonderfilm movies have been relatively low risk and easy to sell, featuring desirable cast and genre. Third party distribution companies earn approximately 10%, plus expenses all at a missed opportunity for Wonderfilm. Wonderfilm Global is expected to allow the Company to quickly realize a significant portion of these distribution margins and equally important, Wonderfilm retains control of the foreign rights to its own productions for further exploitation.
The joint venture with 101 is expected to immediately have impact on revenue. It is a big step forward for our growing production business model with Wonderfilm Global working for us, keeping as much fees and profits within Wonderfilm. It is also a powerful statement to the market that the joint venture is not just about Wonderfilm projects keeping fees, but the further development of revenue streams from acquiring, monetizing and selling content from client producers paying Wonderfilm Global to distribute their films. The joint venture is both a cost saver and revenue generator while also making the development, financing and production process all within Wonderfilm much smoother.
Kirk Shaw, CEO Wonderfilm, 'Ever since we founded Wonderfilm in early investor presentations, securing the Company's own foreign sales subsidiary was forefront of our growth strategy. Over the past year, Wonderfilm evaluated many options and looked at acquiring several companies, but kept coming back to the perfect fit 101 had both in terms of business and team culture. I have known 101 for some time with joint venture discussion ongoing since last fall. I can't express to shareholders how revenue and business critical this move is for Wonderfilm and its base film production business. It's exciting for us to launch the Wonderfilm Global at Cannes where we are targeting $4 million in movie pre-sales over the week.'
101 Films brings a movie distribution catalogue of over 2,000 lines in UK and more recently US rights, specialising in Cast driven independent movies. Among 101's most notable successes are the movies Left Behind (Nic Cage) a number 1 movie in UK, Braven (Jason Mamoa), Jeepers Creepers 3, I am Wrath (John Travolta), and Iron Sky - The Coming Race. For 2019 and 2020, 101 is releasing the Reimagining of David Cronenburg's Rabid, Kurt Russell's cyber heist Crime Thriller Crypto, Tye Sheridan Thriller Night Clerk and the Wonderfilm Produced, Segal and DMX Action flick, Beyond the Law.
Andy Lyon, CEO 101 Films, 'We are extremely excited to be working with Wonderfilm on this JV opportunity, with Wonderfilm's ambitious and significant production slate and the support of 101 Films and Amcomri, I believe Wonderfilm Global will have a unique and exciting opportunity to become a worldwide powerhouse for international sales and distribution. Wonderfilm Global and 101 International will be in attendance at Cannes Film Festival and will be launching multiple cast led movies including the Nic Cage led $10 million production Ten Double Zero'
101 brings a wealth of contracts, infrastructure and IP that will seamlessly blend into Wonderfilm's growing slate of feature films. Wonderfilm Global will have distribution offices in London, LA and Toronto, plus adjunct offices in Dublin and Monaco. Based out of London, Andy Lyon, supported by Left Behind and Rabid producer, Michael Walker jointly head up 101 International while Wonderfilm's Jeff Bowler takes the reins for US operations and acquisitions from the LA offices.
About 101 International Ltd
101 International Ltd, is the newly founded Sister company to 101 Films Limited, one of the UK's largest independent all rights UK publishers. Founded in 2011 by industry veterans Andy Lyon and Adam Lacey, 101 is now co-owned by its founders and Paul McGowan' and Larry Howard' investment group, Amcomri Entertainment Group Limited.
About Wonderfilm Media
Wonderfilm is a leading publicly traded (TSX Venture Exchange) entertainment company with production offices in Los Angeles, corporate offices in Vancouver BC and its Asian distribution office in Seoul, South Korea. The Company's core business is producing market-driven independent feature films and quality television series for multi-platform global exploitation. Wonderfilm is a producer and distributor only for the projects disclosed. The legal ownership of movie productions are held in a special purpose legal entity held at arm's length to the Company to facilitate for the qualification of various levels of domestic and foreign government tax credit incentives that are customary in the film and production business.
Neither the TSX Venture Exchange Inc. ('Exchange') nor its regulation services provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release contains forward-looking statements as defined by applicable securities laws.. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as 'anticipate', 'believe', 'plan', 'estimate', 'expect', and 'intend', statements that an action or event 'may', 'might', 'could', 'should', or 'will' be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein, including disclosure regarding possible events, conditions, timing or financial performance that are based on assumptions about future economic conditions and courses of action; and the plans for completion of the Private Placement, expected use of proceeds and business objectives, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; reliance on key personnel; the volatility of the Company's share price and volume and the additional risks identified as 'risk factors' in the Company's most recently filed Management Discussion and Analysis or in other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including the assumptions that (1) all necessary approvals and consents in respect of the Private Placement will be obtained in a timely manner and on acceptable terms; and (2) general business and economic conditions will not change in a materially adverse manner. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
For further details, please see the Company's documents filed on the System for Electronic Document Analysis and Retrieval at www.sedar.com.
For further information, please contact:
The Wonderfilm Media Corporation,
Chief Executive Officer
Telephone: (604) 638-4890
SOURCE: The Wonderfilm Media Corporation
View source version on accesswire.com: