Red Giant Entertainment (fka REDG)

[WayoftheWater]

REDG Reinstatement - Key Points From "State of the Union" Video - February 23, 2019 

Reinstatement: 

- Temporary, voluntary delisting from the OTC was part of an agreed way forward with SEC. 

- It avoided the time and extreme expense of having to get delinquent filings, going back many years, up to date. 

- All that is required now - as part of the deal with the SEC - is audited financials for 2018 & 2017. 

- This will be easy and quick to do. 

- CPA has already completed the all calculations - now with attorney. 

- Reinstatement to the OTC will be 60 days after filing. 

- SEC has confirmed all previously purchased public shares will be valid when the company changes back again from public to private and listed on the OTC as REDG. 

Moving Forward: 

- Significant problems were experienced in various projects and lines of development that involved reliance on external partners. 

- Therefore REDG didn't have total control of the process. 

- Moving forward, REDG will return to its core competencies with comic books as the baseline. 

- As always, it will be a 50/50 partnership between the parent company REDG and individual creators. 

Progress: 

- The current and future business plan started with the creation of the Absolute "Universe" (a comic industry term for a range of items). 

- Absolute Comics Group was formed in late-2018 to encompass all the new creations / characters that would form part of the Absolute "Universe". 

- The first character is "White Widow" and Issue 1 was funded extremely successfully using Kickstarter. 

- Kickstarter for White Widow Issue 1 reached its funding goal in only 13 hours. 

- Kickstarter was also used effectively for "free advertising" to promote those interested in the product to go into their local specialist comic store and ask for it to be ordered. 

- Demand greatly exceeded expectations. As a benchmark, REDG used demand for "The Walking Dead" - one of the most successful first issue launches in modern times - to gauge their expectations. 

- They also printed 50% overstock over the initial pre-orders and these were all pre-sold before they hit the shelves. 

- Second print run pre-orders for Issue 1 are still coming in. 

- White Widow Issue 1 was also produced with over 30 cover variants for individual retailers. This of course appeals to collectors. 

- REDG believes the demand is due to the extreme high quality of the product - foil / hologram covers, high quality and number of pages and content which is very "different" to everything else [see video for examples]. 

- Kickstarter for White Widow Issue 2 was launched on the evening of February 22 and reached its goal in only 2 hours. 

- REDG considers it now has a viable cornerstone product to go public7 again. 

- Absolute Comic Group will have at least 2 more titles in 2019 in addition to multiple issues and cover variants of White Widow. 

- Assemby line is currently in St Louis where White Widow creator Jamie Tyndall is supervising "hands on" and is also an investor. 

- Extremely good margins and profitability now make it possible to plan on getting a warehouse in Los Angeles - to be near to ports of entry and distribution points - which will reduce costs considerably. 

REDG "State of the Union" Video - February 23, 2019