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.
Reelhouse is an open video sharing platform dedicated specifically for quality entertainment content. The platform offers a comprehensive toolset for filmmakers to self-distribute and market their content while providing a far more engaging experience for their viewers. The toolset includes various monetization, customization and social tools to help filmmakers build their fan base. Reelhouse is a vibrant community of multiple films and as a destination site also embeds a range of features specifically for viewers to facilitate discovery, ease of access, sharing and curation. Visit the company website at www.reelhouse.org
Gener8 Media Corp. is a media technology company led by a team of gaming industry veterans. At the forefront of postproduction, the company earned its stripes by developing a proprietary 3-D conversion technology, garnering high-profile credits including "The Amazing Spider-Man," "Ghost Rider 2" and "Harry Potter." Gener8 has since expanded into offering visual effects services and a cloud-based data management and analytics solution called Cumul8. With its focus on developing disruptive solutions that combine art and design, Gener8 funded and then acquired a majority interest in Reelhouse Media Ltd., an online entertainment distribution start-up. Gener8's head office is located in Vancouver, British Columbia, and it has approximately 200 employees. Visit the company website at www.gener8.com
ON BEHALF OF THE BOARD OF THE COMPANY
Chief Executive Officer and Director
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Forward Looking Statements
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to: Reelhouse or Gener8's ownership. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: general economic conditions in Canada and globally; film industry conditions; potential delays or changes in plans with respect to deployment of services or capital expenditures; possibility that government policies or laws may change; the development, implementation and execution of the Company's strategic vision; and legal and/or regulatory risks.
Release ID: 34312