Parsad Posted August 12, 2012 Share Posted August 12, 2012 this is definitely a situation that most investors will run away from...... will there be any operational activity left at rnk after the asset sale, i.e. will it be an empty shell or will there be operating expenses and potentially cash burn that could eat into the mos? regards rijk Ask yourselves, the remaining assets in the company...be it cash, the note, tax losses, tax credits or potential back-end revenue from "Escape From Planet Earth". Would they generate more shareholder value by being sold off, or in the hands of productive value managers. You guys have heard of Leucadia National, correct? Cheers! Link to comment Share on other sites More sharing options...
rijk Posted August 12, 2012 Share Posted August 12, 2012 the potential upside is clear and looks attractive,... i'm just worried about the downside, there is only a few million nav if the back end revenue deal doesn't work for some reason, which could easily evaporate in case there is a few million opex remaining in rnk after the asset sale, for example, what happens with the salary of the new cfo? regards rijk Link to comment Share on other sites More sharing options...
Green King Posted August 12, 2012 Share Posted August 12, 2012 the potential upside is clear and looks attractive,... i'm just worried about the downside, there is only a few million nav if the back end revenue deal doesn't work for some reason, which could easily evaporate in case there is a few million opex remaining in rnk after the asset sale, for example, what happens with the salary of the new cfo? regards rijk Please explain in more detail ? How much do you expect it being and based on what? TIA Link to comment Share on other sites More sharing options...
Packer16 Posted August 13, 2012 Author Share Posted August 13, 2012 In terms of recovering what they could and could recover in the future, they have stopped the bleeding by selling the studio and retaining the revenue share upside whatever that turns out to be. Without Tim and Francis involved, I would not have touched this with a 10 ft pole. Packer Link to comment Share on other sites More sharing options...
Parsad Posted August 13, 2012 Share Posted August 13, 2012 the potential upside is clear and looks attractive,... i'm just worried about the downside, there is only a few million nav if the back end revenue deal doesn't work for some reason, which could easily evaporate in case there is a few million opex remaining in rnk after the asset sale, for example, what happens with the salary of the new cfo? regards rijk The back-end revenue is just a kicker. The value of the company is in the cash, note, tax credits and tax losses. In terms of recovering what they could and could recover in the future, they have stopped the bleeding by selling the studio and retaining the revenue share upside whatever that turns out to be. Without Tim and Francis involved, I would not have touched this with a 10 ft pole. Packer Jeff Stacey owns about 9%. We own about 7%. That's over 60% in the hands of four very similar value managers. Name another company like that in Canada...in the U.S.? Four managers who would always put shareholders first. Cheers! Link to comment Share on other sites More sharing options...
Green King Posted August 13, 2012 Share Posted August 13, 2012 the potential upside is clear and looks attractive,... i'm just worried about the downside, there is only a few million nav if the back end revenue deal doesn't work for some reason, which could easily evaporate in case there is a few million opex remaining in rnk after the asset sale, for example, what happens with the salary of the new cfo? regards rijk The back-end revenue is just a kicker. The value of the company is in the cash, note, tax credits and tax losses. In terms of recovering what they could and could recover in the future, they have stopped the bleeding by selling the studio and retaining the revenue share upside whatever that turns out to be. Without Tim and Francis involved, I would not have touched this with a 10 ft pole. Packer Jeff Stacey owns about 9%. We own about 7%. That's over 60% in the hands of four very similar value managers. Name another company like that in Canada...in the U.S.? Four managers who would always put shareholders first. Cheers! Thanks I thought i missed something Link to comment Share on other sites More sharing options...
17thstcapital Posted August 17, 2012 Share Posted August 17, 2012 This is a very interesting idea - thanks for bringing it up. Been going through the filings and had a couple of questions: 1) the $5mm loan is a 2nd lien loan - any color on how much is ahead of it? I think I saw a $2mm number in the APA but not sure if that's just the minimum needed. 2) In the Q2 MD&A, I see that that the co forecasts $5.7mm in production credits post transaction. Is this the same as tax credits A/R? Or am I confusing myself here? If it is one and the same, why did it decline so much from $12.7mm ($13.7mm total A/R) from 6/30? Did they travel with the sale? Thanks. Link to comment Share on other sites More sharing options...
Packer16 Posted August 17, 2012 Author Share Posted August 17, 2012 I wasn't able to find anything on the 1st lien holders but this entity will be receving 60% of the back-end revenues form Escape from Planet Earth. The post production credits are credits for post production services (different than tax credits). I believe these are the net credits after the post produiction of Escape from Planet Earth. Packer Link to comment Share on other sites More sharing options...
17thstcapital Posted August 17, 2012 Share Posted August 17, 2012 Thanks for the clarification. So, did the company lose the $12.7mm in tax credits? Or did the buyer take them in the transaction? Based on my read of the APA, seemed pretty clear that all receivables were not part of the purchased assets. Link to comment Share on other sites More sharing options...
sculpin Posted September 17, 2012 Share Posted September 17, 2012 Rainmaker ends deal to sell animation studio 2012-09-17 08:38 ET - News Release Mr. Darren Battersby reports RAINMAKER ENTERTAINMENT ANNOUNCES TERMINATION OF AGREEMENT PROPOSING TO SELL ANIMATION STUDIO Rainmaker Entertainment Inc. has terminated the asset purchase agreement dated June 27, 2012, pursuant to which Rainmaker Studios Inc. (RSI), a wholly owned subsidiary of Xing Xing Digital Corporation, had proposed to acquire certain assets consisting of substantially all of Rainmaker's animation studio assets. Rainmaker delivered its notice of termination because the parties were unable to close the transaction on or prior to Sept. 14, 2012, as had been agreed. The board of directors of Rainmaker felt that due to the delay in closing the transaction, it was in the best interests of Rainmaker and its shareholders that the company focus on its existing business operations and on exploring alternative transactions. Link to comment Share on other sites More sharing options...
Parsad Posted September 17, 2012 Share Posted September 17, 2012 Rainmaker ends deal to sell animation studio 2012-09-17 08:38 ET - News Release Mr. Darren Battersby reports RAINMAKER ENTERTAINMENT ANNOUNCES TERMINATION OF AGREEMENT PROPOSING TO SELL ANIMATION STUDIO Rainmaker Entertainment Inc. has terminated the asset purchase agreement dated June 27, 2012, pursuant to which Rainmaker Studios Inc. (RSI), a wholly owned subsidiary of Xing Xing Digital Corporation, had proposed to acquire certain assets consisting of substantially all of Rainmaker's animation studio assets. Rainmaker delivered its notice of termination because the parties were unable to close the transaction on or prior to Sept. 14, 2012, as had been agreed. The board of directors of Rainmaker felt that due to the delay in closing the transaction, it was in the best interests of Rainmaker and its shareholders that the company focus on its existing business operations and on exploring alternative transactions. When one door closes...another will always open. Cheers! Link to comment Share on other sites More sharing options...
Green King Posted September 18, 2012 Share Posted September 18, 2012 Rainmaker ends deal to sell animation studio 2012-09-17 08:38 ET - News Release Mr. Darren Battersby reports RAINMAKER ENTERTAINMENT ANNOUNCES TERMINATION OF AGREEMENT PROPOSING TO SELL ANIMATION STUDIO Rainmaker Entertainment Inc. has terminated the asset purchase agreement dated June 27, 2012, pursuant to which Rainmaker Studios Inc. (RSI), a wholly owned subsidiary of Xing Xing Digital Corporation, had proposed to acquire certain assets consisting of substantially all of Rainmaker's animation studio assets. Rainmaker delivered its notice of termination because the parties were unable to close the transaction on or prior to Sept. 14, 2012, as had been agreed. The board of directors of Rainmaker felt that due to the delay in closing the transaction, it was in the best interests of Rainmaker and its shareholders that the company focus on its existing business operations and on exploring alternative transactions. When one door closes...another will always open. Cheers! do you know something we don't or do you trust the management or know management better than we do ? If so please share your insights ? Link to comment Share on other sites More sharing options...
Ghost Posted September 18, 2012 Share Posted September 18, 2012 http://news.techfinance.ca/rainmaker-entertainment-terminates-xing-xing-digital-sale-agreement/ Link to comment Share on other sites More sharing options...
Parsad Posted September 18, 2012 Share Posted September 18, 2012 Rainmaker ends deal to sell animation studio 2012-09-17 08:38 ET - News Release Mr. Darren Battersby reports RAINMAKER ENTERTAINMENT ANNOUNCES TERMINATION OF AGREEMENT PROPOSING TO SELL ANIMATION STUDIO Rainmaker Entertainment Inc. has terminated the asset purchase agreement dated June 27, 2012, pursuant to which Rainmaker Studios Inc. (RSI), a wholly owned subsidiary of Xing Xing Digital Corporation, had proposed to acquire certain assets consisting of substantially all of Rainmaker's animation studio assets. Rainmaker delivered its notice of termination because the parties were unable to close the transaction on or prior to Sept. 14, 2012, as had been agreed. The board of directors of Rainmaker felt that due to the delay in closing the transaction, it was in the best interests of Rainmaker and its shareholders that the company focus on its existing business operations and on exploring alternative transactions. When one door closes...another will always open. Cheers! do you know something we don't or do you trust the management or know management better than we do ? If so please share your insights ? I trust management to do the right thing and maximize shareholder value. I know Tim very well, and I've met Craig Graham and am very impressed with him as well. They will do the best they can. Cheers! Link to comment Share on other sites More sharing options...
Green King Posted September 20, 2012 Share Posted September 20, 2012 Rainmaker ends deal to sell animation studio 2012-09-17 08:38 ET - News Release Mr. Darren Battersby reports RAINMAKER ENTERTAINMENT ANNOUNCES TERMINATION OF AGREEMENT PROPOSING TO SELL ANIMATION STUDIO Rainmaker Entertainment Inc. has terminated the asset purchase agreement dated June 27, 2012, pursuant to which Rainmaker Studios Inc. (RSI), a wholly owned subsidiary of Xing Xing Digital Corporation, had proposed to acquire certain assets consisting of substantially all of Rainmaker's animation studio assets. Rainmaker delivered its notice of termination because the parties were unable to close the transaction on or prior to Sept. 14, 2012, as had been agreed. The board of directors of Rainmaker felt that due to the delay in closing the transaction, it was in the best interests of Rainmaker and its shareholders that the company focus on its existing business operations and on exploring alternative transactions. When one door closes...another will always open. Cheers! do you know something we don't or do you trust the management or know management better than we do ? If so please share your insights ? I trust management to do the right thing and maximize shareholder value. I know Tim very well, and I've met Craig Graham and am very impressed with him as well. They will do the best they can. Cheers! I know that all and well one of the main reason that made me pull the trigger. Can you add some context ? what dose that look like ? what characteristics shows that other than knowing the guy ? can u show it to me without meeting him is what ti am trying to say. (technical question) Link to comment Share on other sites More sharing options...
Packer16 Posted September 21, 2012 Author Share Posted September 21, 2012 GK, If you go to Tim's fund's web site (http://mcelvaine.com/) you can find alot about Tim, his approach and philosophy. He was also written up in a book "Stock Market Superstars" a few years ago. He is the CoB of Rainmaker so he is running the show. Packer Link to comment Share on other sites More sharing options...
Green King Posted September 21, 2012 Share Posted September 21, 2012 Thanks Link to comment Share on other sites More sharing options...
motownsf Posted November 3, 2012 Share Posted November 3, 2012 Trailer is out: Link to comment Share on other sites More sharing options...
Green King Posted November 3, 2012 Share Posted November 3, 2012 Now lets spam the interenet so people will go watch it. ;D Link to comment Share on other sites More sharing options...
Parsad Posted November 3, 2012 Share Posted November 3, 2012 Wow, that looks great and very funny! I think it's going to do very well. Cheers! Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted November 3, 2012 Share Posted November 3, 2012 This definitely looks like a cigar butt to me. Post production can sometimes be a nasty, nasty industry. Here are some post production companies that have gone bankrupt in the past several years: Digital Domain (DDMGQ) - did amazing VFX work for blockbuster movies like Transformers. Did the Tupac hologram for Coachella. Meteor Studios (owned by DISCA) - VFX work for Hollywood movies The Orphanage - VFX for movies... e.g. Matrix Core Digital - VFX, animation There are certain areas of post production which are like airlines (or maybe worse). Some areas of post production such as doing work for TV commercials can be profitable, but that field is dominated by small boutique shops and none of them are listed (nor would it make sense for them to be public). Link to comment Share on other sites More sharing options...
motownsf Posted November 15, 2012 Share Posted November 15, 2012 Rainmaker making moves: New CEO and Chairman is Craig Graham Michael Hefferron named as President Delna Bhesania named to the board http://kidscreen.com/2012/11/15/rainmaker-entertainment-names-michael-hefferon-as-president/ Link to comment Share on other sites More sharing options...
Packer16 Posted November 15, 2012 Author Share Posted November 15, 2012 This is not a post production company it sold its post production arm to another group about a year ago. Rainmaker is an animator with alot of NOLs (tax credits), some cash and revenue share from Return to Planet Earth. The production business is a tough business depedent upon personal contacts of the principals. Most of the value is in the post-production credits, tax credits and the residual. If the movie is sucessful this could be a multi-bagger. If not it has some assets that could be acquired by someone else in excess of its current price. The key to this investment is capital allocation skills of the majority owners Tim McElvaine and Francis Chou. Another note I asked my kids about the trailer and they though it was like Planet 41. Don't know if that is good or bad. Packer Link to comment Share on other sites More sharing options...
Eric50 Posted November 16, 2012 Share Posted November 16, 2012 FWIW, I have 4 kids age 4 to 13, I had them watch the trailer and they all liked it and said they would like to watch the movie. Link to comment Share on other sites More sharing options...
motownsf Posted January 8, 2013 Share Posted January 8, 2013 Rainmaker Entertainment Announces Letter Agreement to Co-Invest in an Animated Feature Film Property and Announces Proposed Rights Offering http://finance.yahoo.com/news/rainmaker-entertainment-announces-letter-agreement-223600617.html Link to comment Share on other sites More sharing options...
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