Past Sources of Funding
Prior to 2010, when the Company created FullCircle Entertainment, the Company’s funding came from sales of the Company’s stock, loans from shareholders, loans form Board members/major shareholders and other debt secured by the Company’s Board members/major shareholders as guarantors.
On January 3rd, 2015, we issued a put for $100,000 to Kodiak Capital under our Stock Purchase Agreement with that firm. During the subsequent five-day trading period our stock dropped from $.0465 to $.0035. Consequently, the put price of our shares was lowered to $.00391, which provided only $47,500 in funding. Based on this difficult situation with the market price of our stock, and the effect of possible short selling activity, the Company refrained from further funding requests from Kodiak Capital. Our arrangement with Kodiak Capital expired on June 30, 2015.
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In July, 2015, we entered into discussions with Local Initiatives Support Corporation (“LISC”) for the purpose of receiving funding assistance for the business model change of our theater in Indianapolis. The funding from LISC never materialized. LISC’s funding model focuses on helping build local communities by working with Community Development Corporations. Their various forms of funding include a limited number of grants, but are mostly debt instruments Combined with their general lending focus on working with community groups, not individual businesses, LISC proved not to be a good match for FullCircle Entertainment. Their review of our funding request determined that the Georgetown 14 Cinemas net revenues could not support an additional debt burden. However, there may be future opportunities to seek funding from LISC for specific purposes, such as a façade grant when FullCircle Entertainment is prepared to do exterior renovations to the Georgetown 14 Cinemas.
