EFFINGHAM COUNTY, GA--(Marketwired - Apr 2, 2014) - The following is a letter issued from Chairman Manu Kumaran:
Medient Studios, Inc.
To those who believe and for those who don't..
This will be the first and the last time that I will react to the performance of our stock in the market. The reaction to the 10k in the market yesterday has been extremely disappointing. We articulated our plan in great detail and demonstrated significant progress in the last year. The fact that there was such an dramatic turn in price is beyond logic.
In this context I can confirm that no additional shares were issued by the company today, or in the past few days and insinuations to that effect are totally baseless.
Personal accusations against me are laughable. I have put my money where my mouth is by converting $660,000 at a premium of over 800% to the then market price. I have and will not sell shares unless they hit a base price of $5. The moment I decide to sell a Form 4 will be filed.
This is a company in a rapid growth phase and does need capital to be raised. The reason we are public is to facilitate that. Again, as I specifically mentioned in yesterday's letter ALL money that is raised from the market is going directly into increasing the company's strength. Every dollar of debt that is sold to investors will be replaced by revenues from Yellow staying in the company, which will be used to fund additional films and Studioplex construction.
If you believe in the direction we are headed and in the depth of experience in the management team then the fact that shares are available at these prices should make you happy.
If you don't then I have nothing to say to you except request you to find someone else to harass. You don't control our destiny - God and the believers do.
Along with this letter, I attach the five year financial forecasts for the company once the Studioplex is functional. Prepared by Atlanta headquartered boutique financial services firm HDH Advisors, the projections reflect an IRR of 55.2%. If you compare these numbers to those of some of our key comparables you will see that the realignment of the production process creates higher revenues at considerably lower risk. The model also used the Monte Carlo methodology to create statistical predictability models, analyze key risk factors, and a range of prospective performance outcomes.
They very clearly show that once the Studioplex is operational, Medient will be one of the largest content creation companies in the world.
This is the dream that I invite you to be a part of. If it excites you, then I welcome you to the journey. Else I wish you well.
With the warmest of regards,