The company had to bridge the cash flow until they were able to release Yellow. It was obvious they would have to dilute some. I was hoping at higher levels but the company says their liquidity needs are taken care of. I doubt they will be diluting many more shares. See excerpt from the 10K below.
In 2012 and 2013 We generated revenues from the release of Storage 24, and the sale of prequel and sequel rights on the film. It is anticipated that accounts receivable therefrom will be paid to the Company in the third quarter of 2014. We will be releasing the film Yellow both domestically and internationally either late in the second quarter or beginning of the third quarter of 2014. In addition to the revenues generated by Storage 24, the Company has raised sufficient investor capital to cover the Company’s overhead requirements pending the release of Yellow. Upon the film’s release, the net proceeds of the film are expected by the Company’s management to not only fund the Company’s operations, but also provide capital for additional new film productions. The Company has completed or has financing agreements in place for the Property, and $40 Million in special effects, production and post production equipment and services. The Company is currently working to complete additional project financing for the construction of the Studioplex.
