The Myth Machine

Fact Sheet

Company Name: Myth Machine
Contact: Michael Rodrick
Phone: (818) 472-8000
Round: Series A, Limited Partner (preferred)
Use of Funds: Film Production
Funding Amount: $625,000, Twenty-four class “A” interests at $12,500 each.
Minimum Subscription: One interest, $12,500
Minimum Raise: $300,000
Subscription closing: Upon the minimum raise or by March 31st, 2009

Transaction Description:  Equity investment in the production of a horror/thriller independent film.

Opportunity:  The studio film industry is not keeping up with demand for the horror/thriller genre of films.  The genre has many loyal fans that accumulate titles as a part of a strong sub-culture.  Genre specific films, in particular horror, are therefore more marketable, and a vastly under serviced part of the film market.  Foreign sales have rapidly grown stronger, while theatrical releases, celebrity names, or studio affiliations are often not required for a profitable production.  

Solution:  To create a low cost, high quality horror/thriller film targeted to serve this vastly under served genre, thereby leveraging the strengths of Myth Machine.

Investment: Limited partners have a preferred return of 130% after which profits will be split 50/50.

Competitive Advantages:  

  1. Producer from the academy award winning film “Sling Blade” with Billy Bob Thornton.
  2. An award winning Director:  International Critic’s Prizewinner (Toronto Film Festival); Merchant Ivory/Kodak Award winner (Telluride Film Festival); Critic’s Choice Award (Rotterdam Film Festival), Glowing reviews from Roger Ebert, The New York Times, Village Voice, LA Times.
  3. An Emmy award winning editor
  4. Experience on several successfully distributed films (see prospectus).
  5. Previous projects distributed by Miramax, Artisan, Lions Gate Films, Paramount Pictures (see prospectus)  
  6. New digital film technologies that Myth Machine can exploit to reduce costs in cinematography, sound design, editing, and post production.
  7. Digital technologies allow Myth Machine to inexpensively shoot extra footage to create alternative versions; (PG, PG-13, R, and a director’s cut), which will cater to the demands of the diverse film-buying marketplace.  Responding to the diverse consumption of Wal-Mart, Blockbuster, Netflix, and sensitive international markets will increase sales.     
  8. Myth Machine will utilize past relationships with celebrity actors to leverage itself dramatically in the marketplace. 
  9. Myth Machine has access to the entire audio/sound library of Universal Pictures in Los Angeles.
  10. Business acumen, centralized decision making, control systems, and incentives to reduce taxes and bypass unions as a micro budget film through state and local film commission offices in the form of rebates and tax incentives.

Financial Model:

  1. Two years until initial revenue is realized
  2. Theatrical Release
  3. DVD sales/rentals
  4. Broadcasting/Cable
  5. Soundtrack/music & licensing
  6. Product and image licensing
  7. Broadband internet rights

Exit Strategy:

  1. Sell to major studio outright

FOR INFORMATION ONLY

This memorandum is informational in nature and relates to the packaging, production and distribution of the dramatic property The Untitled Tim McCann Horror Film Project, written by Michael Rodrick.  This is not an offer to solicit investors, but rather an informational brochure to test the viability of a formal limited liability company offering.  It is for your confidential use and consideration only, and may not be reproduced, sold, or redistributed without the prior approval or CobbleStone Productions LLC.

 

These materials were prepared for the sole purpose of providing information to use as a reference in making investment decisions and are not intended as a solicitation for investment.