Digital Domain Media Group Initiates Strategic Realignment
September 07 2012 - 9:46AM
Business Wire
Digital Domain Media Group, Inc. (NYSE:DDMG) today announced
that it has initiated a strategic realignment that will enable it
to focus its resources on its core business, Digital Domain
Productions, Inc., a company focused on creating digital visual
effects, CG animation and digital production for the entertainment
and advertising industries. As a key part of this strategic
realignment, DDMG has begun the cessation of its Port St. Lucie
operations by reducing virtually its entire Port St. Lucie
workforce, retaining approximately 20 employees who will remain as
part of the wind-down.
DDMG’s studios in California and Vancouver intend to continue to
operate without interruption, as will the Digital Domain Institute,
based in West Palm Beach, Florida. Long-time Digital Domain
executive Ed Ulbrich has been promoted to Chief Executive Officer
of Digital Domain Productions.
Digital Domain Productions is working closely with its clients,
vendors and other critical constituencies throughout this
process.
DDMG is implementing this important operational change and
will continue to evaluate various restructuring alternatives, as
previously disclosed, as part of its effort to reduce its overhead
and restructure its long-term debt.
As previously announced, DDMG is continuing to work with the
holders of its senior secured convertible notes, each of whom has
agreed to forbear temporarily from exercising its remedies under
such senior notes until such time as it elects to withdraw such
forbearance on not less than 48 hours’ advance notice to DDMG. An
inability by DDMG to quickly access additional sources of liquidity
to fund its current operating cash needs would materially adversely
affect its financial condition and would require it to seek relief
or protection from its creditors.
John C. Textor has resigned, effective immediately, from his
positions as Chief Executive Officer and Chairman of the Board of
Directors of DDMG, as a member of the Board of Directors of DDMG,
and from all positions as an officer and director with all
subsidiaries of DDMG.
Safe Harbor Statement
Certain statements in this press release constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include
comments about the Company's plans, prospects, strategies and
future performance. They are made on the basis of our management’s
current expectations and beliefs, as well as a number of
assumptions regarding future events and business performance as of
the time the statements are made. Such forward-looking statements
are subject to known and unknown risks, uncertainties, assumptions
and other important factors, many of which are outside the
Company’s control. These could cause actual results to differ
materially from the results expressed or implied in the
forward-looking statements.
Such differences may result from actions taken by the Company,
as well as from developments beyond the Company’s control,
including, but not limited to: price volatility of the Company’s
common stock; changes in domestic and global economic conditions,
competitive conditions and consumer preferences; our dependence on
a limited number of large projects each year, and the timing of
revenue flows from those projects; developments in the status of
strategic initiatives taken by the Company; audience acceptance of
feature films we may co-produce; and rapid technological
developments, including new forms of entertainment.
Further information on these and other factors and risks that
could affect our business is included in filings we make with the
Securities and Exchange Commission from time to time, including
under the heading “Risk Factors” in our Annual Report on Form 10-K
for the year ended December 31, 2012 and our Quarterly Report on
Form 10-Q for the quarter ended June 30, 2012. These documents are
available on the SEC Filings subsection of the Investors section of
the Company’s website at: http://www.ddmg.co.
Information on our website is not part of this press release.
All information provided in this press release is as of September
7, 2012, and the Company undertakes no obligation to update
publicly the information contained in this press release, or any
forward-looking statements, to reflect new information, events or
circumstances, or to reflect the occurrence of unanticipated
events.
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