Wonderfilm Media Corp. Releases Summer Update
July 09 2019 - 8:15AM
via NEWMEDIAWIRE -- The Wonderfilm Media
Corporation (TSXV: WNDR) (OTC: WDRFF), (“Wonderfilm” or the
“Company”) is pleased to release an in-depth investor update from
Wonderfilm CEO, Kirk Shaw:
Dear Shareholders,
It is an exciting time at Wonderfilm as the
Company transitions from a Production Company into an entertainment
industry giant. Some of the recent highlights include:
- At the moment, we have 17 films with a combined $75-$90
million of production budgets “locked in” with actors such as John
Travolta, Nicholas Cage, Guy Pearce, Ryan Phillippe, Kellan Lutz,
Anne Heche, Thomas Jane, Cuba Gooding Jr., Ron Pearlman, Shia
LaBeoufe, Terrance Howard, Dustin Hoffman, Steven Segal and MMA
legends, Tito Ortiz and Chuck Lidell. We plan on sharing more movie
details as the projects develop in the coming days, weeks and
months.
- The Company has forged a working relationship with
Chinese billionaire Dr. Bruno Wu, who brings with him 25 movie
packages. Dr. Wu also has full access to iQiyi, one of the world’s
largest video platforms that has 500 million active monthly
viewers.
- Wonderfilm is preparing the launch of its own streaming
movie channel into 100 million homes later this year.
- We have established a joint venture with Grapevine Logic
with near future aspirations to acquire an equity stake. Their
unique A.I. technology provides us with a social media reach of 3.2
billion subscribers.
- New acquisition of the Esports company ‘Starbury Media’
which will be organizing and hosting exclusive Esports events in
the US and China on site and online. Esports is proving to be the
most dramatically emerging industry in 2019.
- As far as capital raising, the Company is closing a $2
million financing deal this summer.
- Last, with great pleasure, we have been working with
OTCMarkets.com and in the very near future, Wonderfilm will be
up-listing to the US OTCQB market.
Wonderfilm’s goal is to pioneer a new way to
develop, finance and distribute media content. Our experienced
management team knows how to develop and choose what films to
produce, while mixing in a well known celebrity on a modest budget.
Every once in a while, one of our productions will hit a financial
home run, but that is not the only way Wonderfilm makes
money.
How Exactly Does Wonderfilm Make Money?
I should make a point to our investors that
Wonderfilm's internal measure of success is not solely the
profitability of individual films, but rather whether or not a
particular movie project gets financed and produced. Revenue is
generated through sales of our own films and at times third-party
films through Wonderfilm Global. The average film is pre-sold for
$5M with Wonderfilm gaining $500,000 to $750,000 per sale as its
commission. Wonderfilm Global expects to sell between 10 to 12
third party films this year generating roughly $6M in commission
income for the Company.
A further revenue source is generated from
theatrical sales through a 50/50 upside split, once the minimum
sales threshold is met. An example would be a film sold for $5M
that does $20M in box office sales, Wonderfilm would be entitled to
50% of the $15M generated above the guaranteed $5M.
Beyond distribution, fees are charged directly to
each Wonderfilm project, ranging from $100K to $500k based upon the
film’s total budget. These fees are included in the production
budget and are paid to Wonderfilm.
Online streaming Wonderfilm’s catalog will be an
additional revenue source. We have entered into an agreement with
one of the largest streaming platforms in the world. More
details on this will be available early fall.
The recent acquisitions either augment or add to
the existing revenue streams as we integrate them into our business
model, which in turn should increase shareholder value, build
revenue and forge strategic partnerships. Wonderfilm Global is a
big step up. Launching our in-house media distribution arm at the
Cannes Film festival with a second North American introduction to
the market slated for the Toronto Film Festival, represents a
massive win for Wonderfilm. This changes how the Company does
business while providing direct control over the exploitation of
its films, its growing library and its new revenue stream from fees
charged to other producers to distribute their films. It’s a sea
change for our production business model with Wonderfilm Global
working for us, keeping several million dollars in fees and
unrealized profit within Wonderfilm.
Dr. Bruno Wu:
Perhaps the strongest asset Wonderfilm gained
recently is working with Dr. Wu and his growth resources that
stretch around the globe. One of China’s most influential people,
Dr. Wu is a media and entertainment pioneer. He built China’s
largest private media conglomeration and was recently appointed the
vice chairman for the US/China trade relations.
Dr.Wu has identified Wonderfilm as the media
company outside China that he wants to partner with to bring global
distribution to his operations in China, while providing Wonderfilm
with 25 packaged movies as well as many large sports assets to be
integrated into our core business. This includes dedicated access
to his event management company Sun New Light (owned by Sun Media
Group), which is one of the largest event management companies in
China known for hosting the world’s largest music festival with
over 840,000 paying attendees.
The Movie Streaming Channel will be a unique
offering for a Company like Wonderfilm. Movie fans will be able to
vote, play trivia, and connect in many different ways with other
movie goers to enrich their obsessions with movies and TV. There
will even be eventual interaction with their favorite celebrities
or directors themselves. Utilizing Grapevine’s A.I. tech will allow
for the true marriage of social media and online streaming as the
media space continues to see broad strokes of M&A activity, in
search of consumer data.We are very excited about our recently
announced “Amityville 1974” project as it is our first theatrical
feature and expected to be a major revenue producing franchise in
the future. Adjusted for inflation the original Amityville Horror
took in over $300 million, with 2005's remake topping $95 million.
Casey La Scala (Donnie Darko, The Remaining) will direct from a
script he wrote. Jeff Bowler and Shaun Redick (Get Out/
Blackkklansman) will produce for Wonderfilm. Todd Garner
(Tag/Mortal Kombat) will also produce. Kirk Shaw, Bret Saxon,
Yvette Yates, and Dan Grodnik will be Executive Producers.
Wonderfilm’s new sister distribution company, Wonderfilm Global
headed by Christian De Gallegos, is handling worldwide sales at
TIFF, while currently negotiating with domestic theatrical
distributors. Shareholders participate as we evolve. Our core
business is growing. We have added a proven successful feature film
component while building out a foreign sales system, including
having direct release access to the lucrative Asian market. We have
added a streaming broadcast component to further monetize our
content creation and our growing library of productions. The
Company is expanding its core business to include Esports
promotion, production and distribution and through strategic
partnerships access to one of the largest social media companies in
the US. Only conglomerates like Disney or Universal can provide
this marketing power within their basic structure for the
exploitation of content.
All of us at Wonderfilm are working hard to build
something unique and successful. We will continue to keep
shareholders up to date the Company's story continues to develop.
Thank you for believing in us and being a part of Wonderfilm's
bright future.Sincerely,Kirk Shaw (Wonderfilm CEO)About
Wonderfilm MediaWonderfilm is a leading publicly traded (TSX
Venture Exchange) entertainment company with offices in Beverly
Hills, Vancouver, Canada and Seoul, South Korea. Wonderfilm’s main
business is the production of high-quality feature films and
episodic television that offer international appeal through the
Company’s guiding philosophy of bringing new financing solutions to
an entertainment industry increasingly looking for funding and
co-production alternatives. Wonderfilm is a producer and
distributor only for the projects disclosed. The legal ownership of
movie productions is held in a special purpose legal entity held at
arm’s length to the Company to facilitate for the qualification of
various levels of domestic and foreign government tax credit
incentives that are customary in the film and production
business.Cautionary StatementsThis press release contains
forward-looking statements that are subject to substantial risks,
uncertainties and assumptions. All statements other than statements
of historical fact contained in this press release are
forward-looking statements. These statements often include words
such as “believe,” “expect,” “target,” “anticipate,” “forecast,”
“intend,” “plan,” “projects,” “seek,” “will,” “may” or similar
expressions. Forward-looking statements are subject to a number of
risks and uncertainties, many of which involve factors or
circumstances that are beyond Wonderfilm’s control and Wonderfilm’s
actual results could well differ materially from those stated or
implied in forward-looking statements due to many various
factors.Although Wonderfilm believes that the expectations
reflected in the forward-looking statements are reasonable, the
Company cannot guarantee that the events and circumstances
reflected in the forward-looking statements will be achieved or
occur. The timing of events and circumstances and actual results
could differ materially from those projected in the forward-looking
statements. Accordingly, one should not place undue reliance on
forward-looking statements. All such reflect the date made only.
Wonderfilm undertakes no obligation to update or publicly revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.For further details, please
see the Company’s documents filed on the System for Electronic
Document Analysis and Retrieval at www.sedar.com.For further
information, please contact:Kirk Shaw (Chief Executive
Officer)Telephone: (604) 638-4890
Resources Unlimited for Wonderfilm
860.908.4133
info@resourcesunlimitedllc.com
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