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What do you mean hedging at the same time?
I am talking substantial news. Not fluff news that they have been putting out lately. If not this week then probably next week. They owe us several large news items.
Here is Manu's tweet today.
Manu Kumaran?@manukumaran ·
Appreciate all the tweets today, and apologies for not responding individually BUT nothing has changed.. We are on course.. Believe to WIN
They do have some cash flow sources other dilution coming up. They will collect on A/R in 3rd quarter. They will release yellow this year and they probably will release Battle for Banaras this year. Maybe even The Damned at year end or beginning of next year. Plus any Atlas revenue.
I would not write them off just yet. I would at least give them May.
Agreed, I would be fine with getting rid of them.
Most investors on this board know more than IR. They have been useless the few times I have talked to them.
He could be back in Savannah but he did not present at the expo.
IR is clueless. Look at Manu's twitter. He says that he is in Europe and Shapiro was the one presenting.
I think we will get some news tomorrow.
That's not true Manu is in Europe. He said he would be in Europe until after Cannes.
I agree this has potential long term but it all depends on how low they go to raise equity. The share count needs to stay somewhat reasonable. Also they need to execute on their plans which they have not proven they can do. I did not think they would push the share price below the all-time low. Very disappointing.
Well, I have been here since January and held through the run. Would probably be a bit more patient if I had just bought in. I trusted Manu when he said the following in the shareholder letter "Redressing this and returning the company to a share price that is reflective of our real value is one of our key immediate priorities" I figured he had a plan to do this. We are down 75% since he said that.
I do not plan on selling because I believe in the long term plan. I just hope they do not take this any lower.
Agreed, I am a long term shareholder but I thought they would dilute more responsibly rather than driving the share price into the ground again.
A lot of revenue opportunities over the next 6-8 months or so.
1) Announcement of Production Services Agreements for Indian language films to be filmed in Georgia - (May according to activity guidance)
2) Release of Yellow this summer according to activity guidance.
3) Battle of Banaras - Should finish filming this month. IMO will be released soon after.
4) The Damned - Starts production in July. Manu was stated in articles saying that this would only take 45 days to shoot. Assuming this would be ready to go by late fall. I am thinking they release this film in late Q4 2014 or Q1 2015.
5) Atlas revenue. Excited about The New Wilderness Distribution.
Keep in mind that Battle of Banaras is being produced as we speak. It sounds like it will be released shortly after the Indian elections end which is in two weeks. So I am thinking that this summer or fall we will probably see this film released while the election is still fresh. So another potential revenue opportunity.
http://www.deccanherald.com/election/content/404012/battle-varanasi-being-made-film.html
I am thinking/hoping that this dilution is to get the studioplex construction underway. Also, they likely needed cash to pay down the Atlas debt. I hope they are close to raising the equity they need in the near term.
We should get several substantial news items this month. This should bring in some new buyers. If we can just get to Q3, we should get some much needed cash flow from receivables and Yellow. Good luck to all longs!
I was looking at the list of companies at LD micro. That is how I originally found this company. I thought they were overpriced at the time but kept them on my watch list because it was such a novel idea. So I would not be an investor without them attending that conference. Not sure if anyone else found them in a similar way.
Yeah agreed, longs need some good substantial news. Its been a tough month . Hopefully we get the technology agreements ASAP.
Let me see if I can help you with some of these.
What are the revenues from past movies other than Storage 24? I see that Bombil and Beatrice had a budget of 12 million but cannot find any information on it's sales.
I have been unable to find sales for a lot of the earlier Medient films also. However, the SeethruEquity report had the following quote " Of the films Medient has already released, 12 have been profitable, with one of the two unprofitable films being due to piracy and “Yellow” is scheduled for release in 2014." So they have a successful history of producing profitable films according to SeethruEquity.
How does Medient plan to finance the 1200 full-time workers that it plans to employ?
Medient has up to 4+ years to hire these workers without being penalized. The penalty in the lease is minimal for the first couple years after that. So they have plenty of time to meet the hiring goals. They will hire gradually as the ramp up their operations. They plan on making 8 movies annually once the current set of sound stages are operational and 16 I believe once they build the second set of sound stages. This is just part of the revenue opportunity for Medient. I would read the seethru equity report to understand how big this opportunity could be.
What will stop this company from continuing to dilute in years to come, even if it is successful?
They should be able to access more favorable financing if necessary once they prove they are a viable business. Once the studioplex is built they should be able to generate cash flows from operations.
And finally why is this stock trading at a market cap of approx. 4 million when it has 16.68 million in total equity?
There here been a ton of dilution due to liquidity issues over the last 6 months. A lot of supply of shares dumped on the market without enough demand. Also, there were delays in construction and in the release of Yellow during 2013. Construction should start this month and Yellow is expected to be released in August. Many longs believe that with the cash flow from Yellow dilution will slow or stop allowing the price to move upward.
Manu said that Koppelman will be at the Marcum Conference with MDNT on twitter.
What is the signal that will generate the bounce?
Certainly not much volume. Who is on the bid and ask?
Looks like there are good informational sessions for Medient's management at this conference. Basically, ways to finance besides convertibles and that managing the stock is the CEO's job contrary to what Manu says.
http://www.growthcapitalexpo.com/schedule/the-aftermarket/
http://www.growthcapitalexpo.com/schedule/non-pipe-financing-options-for-public-emerging-growth-companies-structured-equity-linked-debt-tranched-offerings-registered-directs-cmpos-at-the-market-offerings/
Yeah I guess it is still possible today but I would have thought they would PR pre-market.
Manu has made it sound like at least two companies will be providing equipment for the studioplex from the news articles. He said they were competitors and large multi-national companies. So that narrows it down somewhat.
No news has been released lately. There is not much to discuss.
The U.S. box office is just one revenue sources for movies. Storage 24 played at one theatre for one week. Storage 24 has broken even to this point. We will likely collect residual revenues from it.
Future movies made at the Studioplex will receive Georgia tax credits. With the tax credits provided by the state of Georgia, Medient will still be substantially profitable even if they only break even.
Where did you find the May 1st date?
If Manu sticks to the plan, we should be getting technology partnership announcements either tomorrow or Wednesday. That would be a nice thing to tout at the conference tomorrow.
Yeah I was not able to watch the entire time today but it looked like mostly retail. Very little dilution if any.
I would hope this begins to move up next month. A lot of big news on the horizon with technology agreements, construction financing, and construction starting. Not to mention some of the other items on the activity guidance. Looks like dilution has slowed down. Now all we need is volume.
Its way too early for deals like that. That is the last stage of construction I believe. My guess is that medient will make a deal with a real estate developer for use of the land. The developer will build the retail space and rent out the buildings. I think that would be strange if Medient went into renting retail space.
There certainly are plenty of income streams once they get this going.
A good day to buy with the technology partnership agreement news being released soon.
Today will be interesting. It looks like dilution for the most part is over. Maybe we will see a nice bounce today.
Thanks for bringing such excellent DD. One of the few people on this board that is truthful and well informed.
If you add the numbers $486,905.00 from last year's 10k. Then this paragraph from this year's 10k:
We had an increase in accounts payable of $15,590 and an increase in accounts payable to related parties of $211,718.
You get the exact number of 698,623 on the 10k. So I think Manu took some money to live on and converted the rest.
I think it is under accounts payable - related parties but you are right the 10k is not very clear.
What do you mean? He converted his loans that he could have easily diluted shares and paid himself. How is that back pay?
Reduce unemployment is pretty vague. You could say they have reduced unemployment already by hiring several people. They have five years to create the jobs and as long as they are in good faith there would be no reason to terminate. They still have 4+ years to create jobs. Kind of a weird time to bring this up don't you think. See the schedule of increased payments below.
The foregoing notwithstanding, if the Company has not attained jobs and investment levels corresponding at least to the goals specified in the Community Goals Table for Year 5 (i.e., $90 million in investment and 1,000 jobs) on or before the end of Year 5, then commencing for Year 6, the annual installment for each Year shall be escalated and shall increase to the amount for each Year set forth on Exhibit “A” attached hereto and incorporated herein by reference, provided, that such escalation shall cease (without affecting the obligation to pay $555,555 per Year) for the first Year after the Year in which the Company attains jobs and investment levels corresponding at least to the goals specified in the Community Goals Table for Year 5 (regardless of the Year in which attainment occurs).
(c)
If it is necessary for any purpose of this Agreement to calculate the amount of unpaid installments of Preferred Rent at any time when an escalation is in effect as provided in (b), above, then it shall be assumed for such purpose that installments of Preferred Rent accrue at the amount for each Year set forth on Exhibit “A” hereto, notwithstanding any event that might intervene (such as attainment of investment or jobs levels).
EXHIBIT “A”
ESCALATED INSTALLMENTS OF PREFERRED RENT
Year
Installment Amount
6
$ 680,555
7
$ 805,555
8
$ 930,555
9
$1,055,555
10
$1,180,555
11
$1,305,555
12
$1,430,555
13
$1,555,555
14
$1,680,555
15
$1,805,555
16
$1,930,555
17
$2,000,000
18
$2,000,000
19
$2,000,000
20
$2,000,000
Can someone copy and paste this provision that says if they do not meet the requirement job creation or investment requirements they default? I do not see it anywhere in the contract. I just see that the payments escalate. Can someone please paste that before we continue this ridiculous discussion.
That's not true I have several degrees in business and you always want to protect yourself. It does not mean that you are going to use it. The County just agreed to build a well for Medient at the cost of 800k. They just drew up new agreements for the project to move forward.