Red Giant Entertainment, Inc. (fka REDG)

[37thirtyseven37]

READ THIS - WHOLE Investor Video Shorthanded Typed out!! Sorry for typos, and grammar, was moving fast and don't feel like editing.

https://www.youtube.com/watch?v=p21-SatpSEU


They DO care about investors, it is why they do this. For all of us!

They do their best to save money, sometimes at events hotels are outrageous $1500, they squeezed 8-9 people in one room to save money!

6:00 mins - Doesn't like to state things until concrete, will not blow smoke. Waiting until verified in contracts!

7:00 mins - Wanted to announce something before comic con, but couldn't cause waiting for the paperwork to be in writing, later this week or tomorrow or next week, when the paperwork is signed and concrete then it will be announced. All terms are set and agreed upon!

8:00 mins - Bandai Namco - initial agreement to produce initially 1 1 property into a game quick mobile app - tentatively coming out.. sometime? got fuzzy.

9:30 mins - past couple months - running all over! New york in may toys r us - then home for a week - did a bunch - to LA for a week for meetings - back to Orlando got married (elopement - some of y'all figured out, ;) - right back to new york to toys r us again - then back then to LA for a week of meetings - multiple meetings a day for all the movie things - back to San.D. to comic con and set up deals.

12:00 mins - its not us saying come look at our stuff, its a lot more involved, people love the idea we have of free comics. They are behind it! Lot of opportunities.

12:25 mins - some other unexpected things coming shortly, some other deals in the works, interesting, interesting, very very cool, stay tuned for those announcements. Been super busy!

12:50 - toys r us WAS one of the big announcements, not sure everyone gets how much this does for the company, goal is not just to be in comic stores but broader range target. Top selling comic books are around 100k units sold. That is really down from the old days when he worked at marvel. The top 10 selling were over 500k/month circulation, so its now 1/5. Early 90's up to a mil maybe, so readership from comic stores overall has dropped. Since they will be doing 1mil books a week and have to find a source of readers outside of the comic stores. To bring in new readers and new people. Toys r us made sense.

15:30 - Toys r us, toys r us looks at this as a real market opportunity.
Because they are not just a video game store, and have so much more going, they can reach broader audience. Toys r us also sells apparel, sporting goods, toys, movies, etc, snack foods, so wider demographic, wider range of advertisers to pick from, easier access into expansion into those markets. Also costs a LOT less to distribute, THEY have their own trucks!!! Other stores utilize UPS etc. So SAVINGS! REDG books can be shipped to one point, and then goes out on toys r us trucks, so many POSITIVE things about working with them. They are excited about it.

18:43 - diamond model - boxes of 50 go out with their weekly comic books to each stores, important that REDG doesn't want to dictate, each store can distribute how they want. Diamond - comic book stores get 1 cover. Toys r us will have an exclusive toys r us cover and co-branded bags. REDG will be printing the bags with both Toys R us and REDG and the books will be pre packed into the bags for toys r us merchandise to go into!!! Part of his china trip way back in February, setting all this up! Partnership with active media. Was all set up, so they have new machinery to insert the books into the bags.

21:00 mins - more than half the books in Nov Dec will go to toys r us in those months and then can adjust accordingly in the future. The bag they receive their merchandise in will already have the REDG comic in it. It is free with purchase. REDG didn't want it to be the penny saver picked up and thrown away. They want them to be the consumers. This provides Value. These are some of the facets as to why these announcements are so big.

22:17 - those are just some of the announcements, there are contracts going back and forth on the other fronts, and will be announced when they can, when they say big news, they don't exaggerate!

23:00 Mins - jump into investor questions! There are a lot! Last blood was brought up a lot! Lots of movement on last blood, can't get into telling us, but some was leaked as y'all found. Financing and actors and trying to herd it all up, it gets complicated and the timing is a big thing, especially with actors. but everyone is excited, script and director and FX guy, and some distribution stuff in the works, so everything is going well on it! Full length production, cant verify the cast, will be an official announcement, the goal is theatrical release.

25:00 mins - financing! Yes we have had to take out some notes. no two ways about it, wasn't what we wanted. We haven't been using it personally he drive a 2007 sentra. and a 2003 pacifica used (like $6k) Not using company money for that. We are not blowing money. He uses priceline to book things and cheapoair, and spending every time cautiously. Not buying caviar and such! It is all going to the company. A lot of the costs go into the maintenance of being an SEC company. The legal fees are $10k a month, and auditors and CPA. Every 8k and PR costs money, and you can see from the books, this is where money goes. Also production on the books! Most of the books are on Issue 3!!! Have to be that far ahead for the launch.

28:00 mins - The goal is to avoid more notes, there are some existing notes out there and all already in place. Moving forward and this is always been the goal. is to utilize the sales of the advertising they will be using factoring! It is base on the receivables, kris longo has the advertisers signed up and are A list advertisers and pay their bills on NET terms, instead of taking out more dilution loans, they can take a large percentage of that money now, and then when they money comes in, they take the full portion. Have verbal and very firm commitments on a large number of advertisers.

30:00 - will be self sustaining in a few weeks!!!!!!!!! Some very big and surprising and big advertisers that even Benny is a fan of! Have until mid September to lock up everything for the books for November. Have back up plans and such in place, but everything seems to be on track! Have personnel in place but Benny can jump in and help as he has a lot of expertise in that area.

32:30 - Unfortunately when the price of stock goes down, the notes were really cheap when they got them then got really expensive and downward spiral. Every dime has been used to get them to where they are, took a little longer than they hoped. Large corporations can take some time.

33:30 - all the pieces are in place. R/S no plans for this! Defitely not at this price or structure, it is not on the radar.

34:00 - lot of RED Giant media - founded by isen and amy, there is a connection there, and was inspired by that, so there is a relationship, but REDG entertainment has kind of taken over the responsibility of their own produced properties..

34:50 - extending the GSL to UK? or are the going to get digital versions only? They are working on digital versions and will be explained more when announced, so globally will have access right after they come out. The print version, wayward sons and tesla will be collected into trade and will be sold globally through diamond. will be translated into Japanese too type thing.

37:00 - Will you sell less than $1.00 since SS has changed, yes He still will not personally consider selling less than, even at this SS. Hasn't sold a single share, and hasn't even exercised the right to, which is a ticking time bomb for taxes, but as far as shares go wouldn't consider less than $1. And might not even sell then. not looking to make money right now, his goal is to build a company that can stand the test of time and leave a legacy for his children, it is a passion for him, this has been in the works for quite some time over his life. This is not a fly by night or a hobby business. he works 18 hours a day on this company and only this company, he had to turn his own company active media over to two others to run. Even their honeymoon they were working non stop, they are all super passionate, this is their business. and STOCK HOLDERS MATTER so much to them! :)

40:00 mins - rev projections, they dont like to make projections because he wants to be factual not conjecture! If they say something they want us to count on them, which is why he wont say until its certain.

41:00 - movie details - there are some annoucements soon about magika and wayward sons, and some other things in the works that will be released as soon as they can.

41:30 - the ALA is extremely happy with REDG medusas daughter and they have a large stock ready, but there is a large gap 6 months between catalogs and ordering and all that. So deals made now have ramifications months from now. But Medusa Daughter has novel version, and a library version, graphic novel, and illustrated thing which is a buy two get 1 free thing, so it has more than 1 type of print. And being worked out with diamond books. Strong showing there. They are fans of wayward sons too because educational component, mythology etc. Tesla, etc, graphic novels, etc. They are hungry for all this content.

44:00 - expect murphy report? Was waiting till after bigs news and comic con, so should be coming out shortly.

44:30 - stats of larger office - wont happen until they need it, being responsible with money, wait until can afford it. They have offices that aren't costing the company any money so stick with those for now.

46:00 - new team members? Creatively they have some names joining and will be announced shortly, and some other big news also soon.

46:33 - get back over .01? Absolutely!! That is their goal, to help stop the dilution to a large degree and want to be back on the BB, and can manage to get above $1 long term and be on NASDAQ and in the years to come is the goal.

47:21 - costs printing and distribution - cant give away competitive information, but their costs are incredibly low. 2 years ago costs yall keep mentioning were from an early business plan and projecting rough business plans, and those were the maximum costs and minimum makes so those were the worst case scenario. An entire container shipped from china is $3-4k! So even if they have to do 10 containers its only 30k so thats way less than we thought, and toys r us helps as well. and printing costs, even with bags are lower than projections! Its not .50 its less.

49:91 - deal with bandai, we dont talk about deals, so when finalized.

50:00 - factoring revenues... so will be huge in 2015.
will you do a buyback in the future? We did do a small one, but it didnt have a huge effect and probably should have used those funds, so if we do that again, it will be in a way that will have a severe impact, not ruling it out....

51:00 signs pointing to profitable out the gate. AT LEAST break even!

how many advertisers slots filled - at about the halfway mark for whats there, they have 1.5 months left, and as you saw for FCBD which was wildly successful, and even the extra books at S.D.C.C. were a huge hit! Those ads were filled within about a week. So Kris Longo having extra staff and 1.5 months, and these recent deals, he is going full deal. He didn't sign people up because the number one question people had was where will the books be? They wanted to know distribution, and REDG didn't tell them yet, so now thy can come out with it!

52:30 - CPM, they are in line with other competitors, whether yearly rate, $25 cpm for interior ad, is the lowest side, now one has done this yet, up to $35 CPM for inferior page, also things like double page spreads, inside cover, back cover, insertions, etc, sponsorships that change CPM and things, so its hard to set.

54:00 - Asks about JNH - Almost done. Jinky is working on it. Was literally editing at SDCC. Coming out Shortly.

55:00 - thank you for coming, hopefully it was informative - its been a long tough road, but he appreciates all of us for believing in REDG and that its real and they are working hard, and they appreciate us helping finance. They are ahead in many places, and some interesting new revenue streams beyond comics, movies, and games! A lot of great stuff coming! :)

Onward and Upward!