Future Sources of Funding
Our need for future funding sources has been greatly reduced from our previous projections requiring $1.5 million to complete the original concepts for our “In-Theater Dining” conversion. Our new “Dine-In Cinema LITE” concept will require approximately one-third of this projected capital. The savings from our new “LITE” model come from: 1) reducing the size of the planned kitchen to 25% of the initial plan (estimated cost $250,000), to a smaller space more the size of a large food truck (approximately $30,000), 2) retaining a theater that had previously been planned to be used for the larger kitchen, and retaining the revenues from that theater, 3) leasing, not purchasing, recliner seating, and 4) reducing the anticipated number of recliner seats by approximately 90%, with a strategy to install rows of recliners in selected theaters instead of completely changing out all current stadium seating.
While the new “LITE” concept reduces the Company’s overall need for capital, our rapid rollout of this concept also increases our potential to use theater revenues to pay for improvements needed to complete the theater transition. The Company plans to use anticipated increased rising theater profits to both supplement planned improvements and to ensure that we meet our payment obligations to our note holders
FullCircle Entertainment is now preparing an updated investment proposal for additional individual promissory note investors.
In the future, the Company may also consider sales of Company stock if the market value of the Company’s shares supports this strategy.
At this time, we have no contracts, agreements, or understandings for additional funding, nor can any assurance be given that we will be able to obtain this capital on acceptable terms. In such an event, this may have a materially adverse effect on our business, operating results and financial condition.
