page 4
This S3.544 million project will star Mike Norris (Son Chuck Norris). Gary Daniels Catherine Flemming and John Rhys-Davies. This action adventure May develop into a television series which could sinifacantly broaden potential revenue figures for the Company.
Magic starts production of Escape to Grimly Mountain, the sequel to Grizzly Mountain in August. This family adventure will once again star Dan Haggerty, star of the successful television Series "Grizzly Adams" Escape to Grizzly mountain may also become a television series, to take advantage of the great demand for family entertainment.
In October the Company begins shooting Strike On 0siras, (currently in negotiations with Tom Berringer as well as. Keifer Sutherland and Bridget Fonda). Strike on Osiris should be ready by the Cannes Film Festival. in May, 1999. This production is based on the Israeli air strike an Iraq's nuclear reactor. This action movie is in the gem of Golans 1976 film entitled Operation Thunderbolt, one of three movies made in that period covering the hostage crisis at Entebbe and the: only one to receive an Oscar nomination.
Additionally, Golan and Globus have discovered now talent to create a franchisee as successful as their 1980's Ninja series which spawned nearly 100 imitations. The team is in the process of signing Quintero Seagal (the Japanese born son of Steven Seagal) to star exclusively in multiple 'Bushido' pictures which Magic Entertainment will produce over the next two years. This action series revolves around a modern day martial arts -warrior fighting justice in an urban setting.
Magic has also acquired the worldwide distribution rights (except Portugal, France and Spain) for Manuel de Oliveira's 'La Lettre " (The Letter) which will shoot in October in Paris and should be ready for the Cannes Film Festival next May, This $4-5 million movie is expected to star Chiara Mastroianni. Magic will contribute $500,000 for the worldwide distribution rights and receive a 40% distribution fee plus expenses in addition to being in first position on recoupment of its initial investment
Additional _Venues
First Miracle Group. Inc. will integrate a 40-film library portfolio available for various territories, which includes such titles as Mesmerized, Crack and Line of Fire, into Magic Entertainment With this library unit Magic can distribution and/or reissue these titles to enlarge its revenue base- We project that the majority of this library would be re-distributed onto television for additional revenues of up to S500,000 per year.
Magic also has a present revenue. stream from its California Athletic Clubs unit located in Northern California. This unit generated over $3.09 million in combined revenues from memberships and services in the latest nine month period ending January 3% 1998. This continued revenue stream should assist the Company as it awaits a much larger revenue stream from its movie productions. However. because the athletic clubs are not compatible with First Miracle Groups strategic business plan, we expect that the Company may divest this division in an effort to concentrate it focus on the movie production industry.
Earnings Outlook
Magic Entertainment has already secured minimum sales guarantees from its activities at Cannes in May, 1999, it has licensed 3 films in Malaysia., 4 in France, 4 in Germany, 4 in Brazil, and I film in Japan for min-imam guarantees of $3.31 million plus overages. Magic has contracts in negotiation worth $4.99 million Which, based on management's past history, we believe has a high possibility of closing. Therefore, the minimum secured and pending contracts, presently tow1ling $8.3 million, represent only a small percentage of the worldwide potential. We anticipate that the remaining unsold territory could significantly increase the minimum guarantees. We project that by including North America, Eastern Europe, the Far East, the Middle East and parts of Africa, the Company
|
