Red Rock now has 3 areas of business. They are in the film finance business, the film P&A finance business, and the new division, Studio Store Direct (SSD). SSD is an established company in the direct response/infomercial business.
Film finance - Red Rock has entered into a financing agreement with National Lampoon regarding the financing of up to 4 theatrical motion picture per year. So far, National Lampoon’s Bag Boy and National Lampoon’s Ratko: The Dictator’s Son have been funded and produced. Red Rock agreed to loan the Company up to $2,000,000 to fund each film. Red Rock recoups its investment plus interest at 10%. Red Rock will also be entitled to 25% of all net contingent proceeds from the picture. Red Rock also has a security interest in the films.
Red Rock is also becoming active in the ultra-low budget film production business, financing and producing $100,000 to $500,000 films. These will be direct-to-video, with rights to also be presold internationally. The company plans to initially produce up to 3 of these per year.
Film P&A finance business - Red Rock funds prints and advertising budget on low budget, platform release theatrical films. They provide up to $500,000 per picture, based on ultimate revenue expectations. So fsr the company has provided funding to Beach Party at the Threshhold of Hell, Electric Apricot, National Lampoon's Bagboy, National Lampoon's Homo Erectus, and One, Two, Many. The agreement calls for Red Rock to be paid back out of first dollars generated plus a premium of 20%. The company also receives a net profit participation when negotiated.
Studio Store Direct - The company is acquiring SSD with plans for Reno Rolle to immediately transition over to lead the Red Rock team. The purchase price was negotiated and locked when RRPH was trading at $.15/share, with no provision for downward adjustment. SSD is currently generating profitable revenue, and looks to grow.
I know that the comnpany has a lot of projects in the pipeline, with the films that they have participated in finally hitting the marketplace.
