• The Crowd investors are
first in to have their investments
and profits repaid, the Business
investors are 2nd in line
• Profit calculation for investors
Strategic Turnover distribution for investors
Explanation Crowd
investors
Business Investors become participants, owners of the rights in the
holding, and finance the
infrastructural logistics and – organisations.
Crowd Investors finance the individual movie productions.
The strategic distribution criteria mentioned below, will come into
effect after the film has
been produced and only when the following basic principles have been
adhered to:
1)
Funds of at least € 100.00* per film have been raised
(* = this amount is used as an
illustration of the below example.)
The time frame during which Crowd investors can invest in any film
through the Crowd funding website
is 1 year maximum, or until the necessary amount of funding for the
production has been raised.
During this first year, the selected Distribution Agencies have the
opportunity to sell the option contracts
to the Advertisers.
After the go-ahead, it is guaranteed that the film will be produced
and marketed during the next 2 years.
However, should it be decided not to produce the film because less
than 200% of advertisement revenue has been generated, the
CI-Expedition Foundation will ask the Crowd investors if they are
willing to invest in another film
(of their own choice), or -if they wish for their money back- minus a
maximum of 10% administration fees.
Advice on the above is available, if required.
2)Selling
options of at least 200% (of the production cost) have been signed
As long as we have not reached this 200% option target, the
movie production account will be frozen.
These selling-options will take effect after a minimum of 2 and a
maximum of 3 years,
when the film is ready for distribution.
This means that an option contract with advertisers will automatically
transfer into a sale contract at the same moment that it has been
decided to start production of the film. However, payment is only due
after the film has been produced and is ready for distribution in at
least 2 languages. (The pay-out to the Crowd investors will therefore
only take place after a minimum of 2 and a maximum of 3 years).
DISTRIBUTION-FORMULA
strategic turnover distributions
|
|
Of
the entire 500 % turnover (average per film project) |
turnover |
500% |
firstly the CROWD-investors
will be paid back their initial investment within
3 years max. (100%) |
minus |
100% |
PLUS
their interest** (40% interest on their investment within
3 years max. |
minus |
40%= |
Remains
|
subtotal |
360%
|
Example
You as a Crowd invester, invests €.10.000 (ten thousand Euros) in
a film.
2-3 years after investing you will receive:
|
Your initial investment
of |
€. 10.000 |
|
plus your (fixed) intererest of 40% |
€.
4.000 |
|
|
€. 14.000 |
This (fixed) interest incl. VAT is 40% in 2-3 years
This comes down to an annual yield of min. 13.3% and average max. of
20%
Explanation Business investors
After the above
calculation, 40% will be deducted.
This amount is intended for the annual gross interest payments
of the BUSINESS-investors (participants) (of which percentage
30 % = interest and 10% will be strategic reserves). These
reserves will serve as a buffer against possible financial
difficulties in the future.
If not needed, every 2 years, 50% of these strategic reserves
will be
allocated to the mission RTPK to be used for innovations |
minus |
40%
= |
Remains
|
Subtotal |
320% |
Conclusion:
●
Pay-back of Crowd investors takes precedence over
Business investors
●
Crowd-investors run a small risk of 10% on their investment, but when
successful, they receive a much higher interest rate than elsewhere
●
For Business investors there are other built-in reserves per
production (risk mitigation)
** = The interests in this formule are fixed and include VAT.