Earthworks Entertainment Inc (EWKS)

[Midsommar]

" During the year ended September 30, 2000, the Company initially
recorded its investment in MPI as a consolidated subsidiary of ETNT pursuant to
a stock purchase agreement from May of 2000. Upon the acquisition of a 51%
interest in MPI at that time, the Company had a conditional option to acquire
the remaining 49% of MPI, with certain extensions through July 30, 2001. On July
30, 2001, eContent let its right to complete the acquisition of MPI expire, and
subject to the return of certain shares, the Company forfeited any interest in
MPI. The level of the Company's working capital, the effect a completed
acquisition would have on the dilution of the Company's stock, and MPI's
willingness to work with us on future productions had an impact on the decision
to not to exercise the option to complete the acquisition."
https://sec.report/Document/0001096906-03-000073/