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.
