December 29, 2011
Attn: Writers’ Group Film Corp. Shareholders
Dear Shareholder,
I want to take a few minutes to update you as to the Company’s progress that has occurred in 2011 and the goals that we have initiated for fiscal year 2012.
As you may or may not be aware, over the past several months, the Company was the subject of a lawsuit and several press releases filed and issued by a George Sharp. Mr. Sharp named the Company, me, and many others, as defendants in his lawsuit against Writers' Group Film Corp. and its subsidary, Front Row Networks, Inc.
In addition to responding to the lawsuit, the Company has been examining its legal options which may be, but are not limited to, a counter lawsuit being filed with significant damages being sought for the Company. The Company intends to do everything possible to protect its shareholders from the potential damages caused as a result of this legal action.
During the litigation process, we realized that much of our energy and resources were being diverted away from operations as we contacted potential investment partners, lenders, vendors, potential production partners, performers and others in our industry, in order to correct the story and mitigate the damages caused by Mr. Sharp’s wrongful lawsuit. Based on the realizations above, coupled with the resulting volatility of the Company’s share price, we made the decision and deemed it necessary to refocus our energy solely on our priority goals of locking in distribution for our product in the US and Europe, and targeting new 3D concert productions with performers and their management.
In the last quarter of 2011, the Company has secured distribution agreements for its 2D and 3D content for both theatrical and connected device markets in both the United States and Europe, and has partnered with commercial and music video production companies that will source and provide expertise and production services on potential projects in 2012. We believe these arrangements, combined with our production financing strategy, will allow us to produce and distribute up to four 2D or 3D projects over the next twelve months.
Although we are not pleased with the pace in which our 3D concert productions have occurred, we feel that by refocusing our energy away from the lawsuit and into the core aspects of the business, we can build our business and cash reserves to capitalize on new 3D concert opportunities as they become available in 2012.
Our goal in making these decisions was simple; we want to provide our shareholders with value in 2012. We understand that the financial difficulties with the economy are at levels not seen in decades. As such, we feel it is only right to make sure the people that have believed in us and have invested their hard earned funds in our shares, see that we are thankful for that and that we will stand behind our shareholders and put them first in our decision making process.
We are thankful to our shareholders for their continued trust and belief in our business model and growth strategy. Our primary focus in 2012 will be on the 3D concert production side of our business, but as stated, the company will be seeking additional opportunities in theatrical and ancillary distribution both in the US and abroad, and will continue to seek and acquire 2D concert video libraries, with the intent of digitizing, converting to 3D, and re-releasing this content.
There have been many rumors generated as a result of the lawsuit. However, I want to make it clear that we have no intention of walking away from our business strategy and intend to prevail. The fact that we have been able to continue our business and have finalized multiple production and distribution arrangements during this difficult period of litigation is a testament to our tenacity and our belief in the business model.
We will continue to use our best efforts to keep our shareholders informed as to our progress over the coming months and thank you for your continued support.
Sincerely,
John Diaz
CEO
