Medient Studios Inc. (fka MDNT)

[likwit]

can someone tell me if and where I am going wrong with my thoughts with this? I'm trying to wrap my head around all the selling here if it is supposedly such a good company to own at such a discount...



August 25th 2012 – 1,404,000 common stock issued and outstanding as per 10k filed Apr. 16th 2013

NOTICE IS HEREBY GIVEN that, on August 27, 2012, Fairway Properties, Inc., a Nevada corporation obtained the unanimous written consent of its board of directors and the written consent of stockholders holding 1,083,000 shares of common stock of Fairway Properties or 77.14% of the voting power of the issued and outstanding shares of Fairway Properties’ common stock approving:
•?
an increase one hundred forty million (140,000,000) shares of common stock, par value $0.001 per share, to five hundred million (500,000,000) shares of common stock, par value $0.001 per share;
•?
the creation of Fifty Million (50,000,000) preferred shares; and
•?
a name change of the corporation to Medient Studios, Inc.

So in order to amend the articles of incorporation they needed to have a majority vote of which they received 1,083,000 votes of a possible 1,404,000 or 77.14%. This leaves a mere 321,000 shares unaccounted for. All 1,083,000 that voted for was owned by Kumaran as per form 3 filed Aug 28th 2012. >> http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8850200

November 19th 2013 – Most currently we are at 41,298,817 as per 10q filed Nov. 19th 2013
On November 26, 2012, Medient Studios, Inc. (the Company), a Nevada corporation, entered into a purchase and sale agreement with the owners of all the membership interests of Kumaran Holding, LLC., an Oklahoma limited liability company, to purchase all of the membership interests of Kumaran Holdings, LLC.

The Company purchased all the membership interests of Kumaran Holding, LLC for a purchase price of thirteen million seventy eight thousand dollars ($13,078,000). This will be paid in the form of ten million (10,000,000) preferred shares and twenty six million (26,000,000) common shares of Medient Studios, Inc. This deal closed on November 26, 2012.

SUMMARIZED
During the year ended December 31, 2012 the Company issued 27,054,000 shares. The Company had 179,000 shares that were earned for services performed by the former majority shareholders of the Company, 250,000 shares earned for services performed by board members, 3,250,000 shares issued in exchange for debt, and 23,375,000 for the acquisition of Kumaran Holding, LLC.

Kumaran now owns 23,375,000 + 1,083,000 = 24,458,000 common shares

28,458,000 outstanding by Dec 31st 2012 as per 10k filed april 16th 2013
24,458,000 Kumaran + 321,000 unknown = 24,779,000 leaves a difference of 3,679,000 shares issued during 2012.
On December 4, 2012, the Company issued 3,250,000 common shares to Mr. Pankaj Rajani and assignees in exchange for the conversion of $1,300,000 of liabilities.
“For the year ended December 31, 2012, we issued common stock for services with a value of $227,400 and We issued $30,000 in stock for film assets”
So we are at 429,000 + 321,000 potential shares for resale. = exactly 750K shares in ‘float’ by Dec 31st 2012 assuming Kumaran would not be selling any of his 24.458M shares and Rajani isn’t selling any of his 3.25M shares.
321,000 from existing +
250,000 board member services +
179,000 shareholder services +
= 750K shares in “float” as of Dec 31 2012
Lets quickly look at the two movies, “Storage 24” and “Yellow”

Circle West, a media investor, made a loan of $2,000,000 towards the production cost of the film Storage 24 . This liability was assumed by the Company upon the acquisition of the rights in Storage 24 as of October 18, 2012.

Mr. Pankaj Rajani, a media investor, made a loan of $1,300,000 towards the production cost of the film Storage 24 . This liability was assumed by the Company upon the acquisition of the rights in Storage 24 , as of October 18, 2012.

Prime Focus is a multi-national visual effects and post-production company. The London division of Prime Focus provided $1,000,000 of services towards the production cost of Storage 24 . This liability was assumed by the Company upon the acquisition of the rights in Storage 24 , as of October 18, 2012.

SIDE QUESTION = We ‘spent’ 4.3 million dollars for productions costs, services, and rights to Storage 24. How much revenue did we earn on that movie, does anybody know?


Tommee May, a media investor, made a loan of $150,000 towards the production cost of the film Yellow . This liability was assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012.

Indion Group, a media and tax credit investor, made an initial loan of $4,556,130 towards the production cost of the film Yellow . This liability was reduced to the amount of $600,000, and assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012.

AMAG, Inc. is a media investment company. It made a loan of $1,000,000, which has accumulated $190,321 of interest, towards the production cost of the film Yellow . In addition to repayment of principal and interest, AMAG shall receive a three percent participation in Yellow .
This liability was assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012. This note is currently in default. The Company is in the process of negotiating an extension.

Mr. Pankaj Rajani , a media investor, made a loan of $8,600,000 towards the production cost of the film Yellow . This liability was reduced to the amount of $660,000, and assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012.

Mr. Derreck Lee, a media investor made a loan of $500,000, which has accumulated $160,000 of interest, towards the production cost of the film Yellow . In addition to repayment of principal and interest, Mr. Lee shall receive profit participation in the film after all other debts and equity investors in the film are paid in full. This liability was assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012.


SIDE QUESTION = We assumed $14,806,130 dollars of liability for productions costs, services, and rights to “yellow’ + gave up 3% participation to AMAG and an unknown % age to Derrick Lee which was marked down from 14.8M to $3,260,000 . How much revenue did we earn, does anybody know?


March 31st they are at 33,856,551 as per 10q filed May 20 2013. That’s an increase of 5,398,551 since Dec 31st 2012 10k.
Issuance of common stock 5,398,551 for financing as indicated by 10Q
On January 9, 2013, and February 6, 2013, the Company issued a total of 2,500,000 common shares to Prime Focus and assignees, in exchange for the conversion of $1,000,000 of liabilities.

On March 19, 2013 the Company issued a total of 2,898,551 of common shares to Circle West in exchange for the conversion of $2,000,000 of liabilities.

2,898,551 + 2,500,000 = 5,398,551

On April 11, 2013, the Company issued 2,625,000 shares that were remaining to be issued as per the Kumaran Holding, LLC acquisition agreement.
Kumaran now at 24,458,000 + 2,625,000 = 27,083,000 shares
27,083,000 kumaran +
321,000 unknown from prior +
3,250,000 Pankaj Rajani +
2,500,000 Prime Focus +
2,898,551 Circle West +
250,000 board member services +
179,000 shareholder services +
= 36,481,551 o/s
According to Mar 31th 2013 10q - 36,481,551 outstanding common shares so that makes sense..
BUT WAIT….

According to the 10K from dec 31 2012, these are the shareholders, not Kumaran he owns none?? Am I missing something, did he give all his shares away?

Who are the people below and where did their shares come from? There are others these are just largest blocks I could find and cant trace how they got them. Even if they were supposedly co-owners of kumaran holdings, i mean really, kumaran himself has a prety small %age of his own company.

Al Imran General Trading 3,250,000 common

Jasmine Valley 3,000,000 common

Dinesh Panicker 3,250,000 common

Shilpa Sharma 2,250,000 common


Joel Shapiro 3,000,000 common

Also wouldnt all the shares be rule 144 restricted and not available for sale yet anyways, the first big block transfer was in Dec. of last year and wouldn't even unrestricted until this month at the earliest. Unless of course they back dated all the date and issued the shares free trading so they could be sold immedietely which doesnt bode well with me either.

It just doesnt make sense to me with all the shares that have been issued into company insiders hands for production costs, consulting, etc.. for the two films and Kumaran owning the majority of the O/S why there is so much selling down here. If any one of the companies or people that have funded this thing so heavy and even Kumaran knows that this mega film studio is going to happen, then why all the selling all the way down to .0121 on Friday. & its not small time selling its a lot of shares…
Any thoughts are welcome to help explain my thoughts. If I have missed something forgive me in advance.