Sycamore Entertainment Group Inc (SEGI)

[GR8FX]

This is from Ed's deposition (2 possible sources due):

There was an announcement some time ago

7 that Sycamore was -- had entered into a deal

8 about streaming the Judy Garland Show.

9 A That's right.

10 393 Q Did Sycamore receive any income in the last

11 couple years as a result of that?

12 A We're currently building out the streaming

13 platform in order to complete that. And -- and

14 Sony, of all people, has stepped in, and they

15 want to buy the program from us.

16 So we're -- we're the actual owner of the

17 content. And myself and Sony are working on

18 what that would look like, because we have the

19 first right.

20 394 Q All right. And do you have an estimate? You

21 don't have to give me an exact number but how

22 much of an investment that would be by Sony.

23 A Ten million.

24 395 Q And when do you expect those --

25 A Well --



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1 396 Q -- negotiations to be complete?

2 A Oh, man. Probably late summer.

3 397 Q Okay.

4 A Early spring.

5 398 Q So you are anticipating a potential 10 million

6 dollar investment in Sycamore?

7 A No. The -- the -- the investment will go to the

8 rights owner. We don't own the rights. We are

9 licensing partners. So he'll get -- he'll get

10 paid out and then he has to buy out our contract

11 to stream.

12 So we have a license to stream from him,

13 and if he's going to take it from us and give it

14 to somebody else, he has to pay us what we would

15 potentially earn during that licensing period.

16 399 Q Is Sycamore taking a fee as a result of the

17 streaming agreement?

18 A Fee?

19 400 Q Or is it -- did it pay for the licensing?

20 A Yes. Yes.

21 401 Q So -- or is it receiving revenue from the

22 streaming?

23 A It's -- it -- we paid a fee for the rights. We

24 paid it in stock and cash.

25 402 Q But when you said you were building out the --



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1 A We're -- we're going forward as if Sony doesn't

2 exist.

3 403 Q Right.

4 A So we own the rights, and we're going about our

5 business to stream the stuff.

6 404 Q So it's not streaming --

7 A It's not --

8 405 Q -- now?

9 A -- streaming -- no, it's not streaming.

10 406 Q And Sycamore has not received any revenue as a

11 result --

12 A No.

13 407 Q -- of streaming?

14 A No. We're building a platform to stream that

15 and other projects. So we -- we bought the

16 right; now we own the rights; now we have to

17 develop our platform in order to stream it.

18 408 Q Okay.

19 A That and other content. That's just...

20 409 Q Let me ask you about Unsullied.

21 A Yes.

22 410 Q I'm not going to put this press release to you.

23 But January 16th, 2015. I've seen it -- a press

24 release that says that you have a distribution

25 agreement --



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1 A Yes.

2 411 Q -- with Mr. Rice --

3 A Yes.

4 412 Q -- to distribute this film. Is this similar to

5 the other film you were talking about in terms

6 of this is a distribution agreement?

7 A Yeah. We're distributors.

8 413 Q Okay. And there is no income as of yet --

9 A Yeah. The movie --

10 414 Q -- with respect --

11 A -- comes out in September.

12 415 Q Okay. What is the anticipated revenue to

13 Sycamore as a result of this deal with Mr. Rice?

14 A Oh. 4 million.

15 416 Q And is -- do you anticipate that that will be

16 paid to Sycamore in the next year?

17 A September.

Of course, it is October now and as far as we know nothing!

I don't know how much Unsullied has made, but I can't imagine it brought in 4 million overall, let alone to give to Ed. Also, as far as we know the streaming platform is still not up and running, so no Sony.

Or could it be we're not hearing from Ed because something we don't know has worked and he's busy paying bills, debts and he's back to playing the "movie mogul" and "jetsetting playboy"?

We don't know yet.