• Frequently asked
questions and answers.
• For BUSINESS investors (participants in the HOLDING)
and CROWD investors (per film).
What is the
reason for you to invest in a film?
A filmproject with us is an easy and clear way of participation
because we use a Dutch legal form: a 'foundation’.
It is relatively safe because your other assets are not at risk with
this investment. For an investor, it also allows you to closely
monitor international developments, and in projects you can - to a
degree - have more say than in other investment opportunities.
How to become
involved as a partner of the film?
See:
Investors
Is there a target
return?
Each film stands on its own.
Our aim is for each film to realize at least a 5-fold yield over its
investment. Preceding a project we make an exploratory sales round
among the various distribution channels to obtain written broadcast
options (
a broadcast option is a
document which indicates a potential buyer having the intention to
distribute the product through its channels according to the pricing
and general- and special conditions, relevant .... etc., or an
advertiser / sponsor indicates the willingness to be present in the
film by inscript and productplacements, but lasts only confirmed
when the film has raised enough investment funds) before
shooting a movie as an investment project.
What are my
responsibilities as an investor?
At least once a year there is a general investors meeting. On the
agenda for this meeting will always be a report on the accounts and
the granting of discharge to directors. You as an investor will
receive each year an invitation to attend this meeting.
What is my relation to Foundation directors and
how are they supervised?
At least once a year there is a general investors meeting. On the
agenda for this meeting will always be a report on the accounts and
the granting of discharge to directors The financial statements are
pre-audited by a certified audit firm.
Am I as
participant responsible for losses?
You become co-owner of the format-rights, meaning: the value of these
rights will increase, and sometimes decrease a bit in that flow. For
that risk we build a strategical reserve (see
Businessplan:
strategical turnover shares)
Because the Holding
So speak!...
Ltd do not have external trade contracts itself, so from that side, it
will not go bankrupt.
The workingcompanies can go bankrupt, but you keep allways the
ownerrights; and you are not responsible for the more loses.
Am I as
CROWD-investor responsible for losses?
No, you as an investor run only a relatively low risk over your
invested amount. This is a 5-10% loss if the film in which you have
invested is not produced because of ‘
not
collecting the required €.100.000* investment funds’, or ‘due to
insufficient broadcast options’.
In addition, you run an own risk of 10% if during productions staff or
crews due to external circumstances can not realize their productions.
For this there is a separate insurance coverage.
If I participate with a higher investment, do I have more input
on voting than someone who participates with less?
Yes, partly,
● |
The weight of the vote is
proportional to the contributed capital, in strategic
decisions, like approving the annual accounts. |
● |
In terms of voting during the talent hunts, each investor,
big or small, has equal rights. |
● |
There are also voting rights with BUSINESS funding investors
in the scriptwriting of certain projects. In that case: not
financial capital will be directing, but creative capital. |
What if the
investment amount is not fully collected?
The funds will be refunded after verbal/written agreement - including
our proposal to investors
minus the cost of the notary's
account and other expenses, at least 5% to 10% max of the amount
invested. (see
investors
/ certainties).
But investors in that specific film-project will first be approached
by the Foundation with a proposal to invest that money without costs
in another film.
What kind of extra securities
does the Foundation give to the very first BUSINESS investors?
The very first BUSINESS investors in a project run an extra risk
because of the possibility that the project in which they are
investing in does not collect the required €. 100.000*. In such a
case, we propose two alternatives:
1. |
For the first 3 films we do not
ask for money to be directly transferred to the Foundation,
but ask for options; meaning: investors can fill in a digital
form in which they declare to invest ‘a certain amount’ to be
paid by them after the level of €.150.000 is reached by
options. |
2. |
We seek a grant/investment that guarantees to make
additional investments for 7 films. |
* = see:
Businessplan:
/ Rules and procedures