Modern Cinema Group Inc.is proud to announce the signing of an agreement with Beijing Jaihe Shiji Movie & Television Company creating a joint venture for the purpose of co-owning and managing a film fund based in China. Although the total amount of money in this fund is not expected to exceed $100 million, considered a mid-level fund by Chinese standards, there will be enough money to co-invest in MCG's slate of high-concept action movies as well as individual movies targeted to Asian audiences.
Ross Cooper, CEO of Modern Cinema Group says. "We're thrilled with this opportunity to work with Jaihe. The structure of our agreement is ideal for us, as they have agreed to invest half the money we need for each production while global television operators invest the other half. In this way, Jaihe will benefit not only from profit participation but from the all important Chinese distribution rights as well. As for our constituent television operators, they will have more ammunition to fight emerging on-line threats that encroach their markets every day."
In addition, this agreement allows Jaihe to purchase a ten percent stake of MCG's stock before the end of this year, taking one board seat.
Mr. Liguo Chen, CEO of Jaihe says, "The goal of this joint venture with MCG is to co-finance a certain number of Hollywood movies each year with a new studio model that is well suited to our fund. We especially like the operator co-operative approach that generates enough financing to match our investment. This means we have long-term financing partners who are strategically aligned. We also appreciate the initiatives MCG is taking to build a new and forward-thinking distribution infrastructure. All of this appeals to us very much!"
Mr. Ajay Dugar, industry expert and former Paramount Pictures' Executive Director of Digital, says, "I'm very happy to see MCG begin its operations by establishing important relationships in China. If Dale Launer can continue to make the movies he's known for (My Cousin Vinny and Dirty Rotten Scoundrels), they will be a fun group to watch."
Modern Cinema Group based in Beverly Hills, founded in San Diego has spent the last three years designing and patenting a new model that allows both studios and operators to integrate their systems to leverage each other's natural advantages. Plans for an advanced international distribution network are in the works as well.
Beijing Jaihe Shiji Movie & Television based in Beijing with years of production and distribution experience, co-producers of numerous motion picture and music related projects throughout Asia with major Asian production achievements in China and throughout the continent. Numerous projects have garnered important awards not to mention critical acclaim. Jaihe maintaining excellent relationships with the Chinese government.
FORWARD LOOKING STATEMENT
This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning it expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.