GENER8 ANNOUNCES SIGNING OF 3D CONVERSION PARTNERSHIP AGREEMENT
VANCOUVER, BRITISH COLUMBIA, March 18, 2014 - Gener8 Media Corp. (CSE: GNR) (“Gener8” or the “Company”) is pleased to announce that it has signed an investment and partnership agreement with Tianjin Fu Feng Da Movie & Television Technology Investment and Development Co., Ltd. (“FFD”), pursuant to the letter of intent (“LOI”) previously announced on November 4, 2013.
The partnership between Gener8’s stereoscopic 3D conversion division and FFD is expected to provide capital, talent and economies of scale to service the Company’s growing clientele in Hollywood. This relationship is also expected to give the Company access to the Chinese box office where 3D entertainment is growing at a faster pace than in North America. After closing the transaction, Vancouver-based Gener8 will continue to provide Hollywood studios with top talent, pricing, quality, security and service.
“This is a great opportunity for Gener8 to partner with a large company interested in expanding its postproduction reach into North America and, at the same time, provide access to an emerging market that offers tremendous potential in 3Dapplications to the media and entertainment sector,” says Rory Armes, CEO of Gener8. “I am excited about partnering with FFD, a company that has the same passion for creative excellence as we do and will stand beside us to provide Hollywood with the best talent and highest standards in quality.”
“In a short amount of time, Gener8 has proven that best-in-class technology and production standards can co-exist with sustainable business practices, “ says Liu Yong, FFD Chairman. “FFD is excited to be joining Rory and his team in setting the precedent for successful partnerships between North American and Chinese studios and further augmenting an already successful Gener8. For all of Gener8’s clients, it will be business as usual, just bigger and better."
Under the terms of the agreement Gener8 will transfer its existing 3D business to a new company which will continue to be managed from Vancouver following closing by Gener8’s leadership, creative and production teams, and the parties will enter into a shareholders agreement which will require unanimous consent for most operating and investment decisions on a going forward basis. FFD will pay Gener8 $15 million for 60% of the Vancouver-based 3D conversion partnership. The Company’s board of directors, consisting of representatives from FFD and Gener8, will ensure the right project team, security and location is used for each client’s needs.
The definitive agreement is subject to closing conditions including all requisite regulatory, exchange and shareholder approvals, obtaining any requisite government approvals and third party consents, and various other conditions customary for an agreement of this nature. The transaction is expected to close on April 11, 2014 and no later than April 30, 2014. There is no assurance the transaction will be completed as planned, or at all.
Gener8 intends to use the net proceeds from the transaction to help finance the development and commercialization of other technologies within the Company including Cumul8 and Reelhouse Media Ltd. and for other purposes such as working capital andrepayment of debt.
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