GENER8 TAKES MAJORITY INTEREST IN REELHOUSE
VANCOUVER, BRITISH COLUMBIA, February 25, 2014 - Gener8 Media Corp. (CSE: GNR) (“Gener8” or “Company”) announced it has increased its interest in Reelhouse Media Ltd. (“Reelhouse”) from 48% to 66%, taking a majority equity position in the disruptive film distribution platform that has attracted the attention of both the independent film community and major Hollywood studios such as Warner Brothers.
Since the inception of Reelhouse, Gener8 has been providing start-up support including funding and management mentoring. Says Rory Armes, Gener8 CEO, “Direct-to-consumer film distribution is a highly disruptive sector without a prevailing technology. Cable broadcast, internet streaming and DVD distribution powerhouses are all jockeying for the lucrative at-home film market. We see Reelhouse standing in the eye of the storm and emerging as the dominant player.”
The 18% interest was acquired from Reelhouse employees for consideration of 1.3 million shares issued by the Company. Within the next 60 days, the Company intends to make an offer to acquire additional shares held by employees through a share for share exchange on similar terms.
“We are committed to breaking through as the best solution for content creators and distributors by offering them more control and revenue than previously possible,” says Bill Mainguy, co-founder and CEO of Reelhouse. “We are thrilled that Gener8 continues to support us fully as we pursue the many exciting and strategic growth opportunities ahead.”
According to data released by Digital Entertainment Group, digital movie purchases surged 47% in 2013 to $1.19 billion and was the fastest-growing category in the home-entertainment sector.
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