Use of Proceeds:
I don't have the prospectus in front of me, but the general categories and amounts are as follows:
First, remember that the founders of the company bought themselves back from the Canadian company that distrubuted their shows and helped them finance the first two seasons of ReBoot and the first season of Beast Wars (Alliance Communications).
Of the C$36mil issue, $6mil is Alliance selling out, hence the company will not get those proceeds.
Of the C$30million being raised the uses are for:
Capital Lease Obligations (computer & production equip.)
Invest in new projects (Movie with Storyopolis - they have to produce a 10 minute test for Hollywood distributor)
For Beast Wars 2 (Alliance is not part of the second season)
For new European show (Closing Time)
For ReBoot season 3 (under way now)
Working Cap
The only number I remember off the top of my head was that the working cap was around C$6-7mil. I'll get the numbers next week for you.
There is no debt in the company. The debt that shows up in the prospectus is convertible debt that was part of the management buyout and it will be forced to convert to equity post the issue according to the prospectus. The only real debt is the capital lease obligations for their computer and production and sound equip. I believe they now have something like 10-12 fully equiped production suites.
In the roadshow, they now claim that they got the prodution time for a half hour Beast War show down to something like 16 hours by the end. THAT'S INCREDIBLE! Ask anyone in the industry. Basically, because they had already modeled all the backgrounds, scenery, ancilliary objects, they just had to work with the characters. Efficiency really kicks in over time, which is why as they begin to get season's 2,3,4,5 in various shows, it becomes so much more profitable. |
