MIAMI BEACH, FL, June 10, 2013 /PRNewswire/ - In response to numerous inquiries, Rangemore Film Productions Corp. ("Rangemore") (OTCPINK:RANF) would like to clarify to shareholders and potential investors its current business model.
The business of Rangemore consists of two components: studio operations and film royalties.
The studio operations could be compared to that of a property management company. Rangemore has access to a portfolio of properties of which it leases out at a small profit to film production companies in exchange for cash and film royalties. Whether Rangemore owns or leases the properties long or short term is inconsequential. While this component does generate revenue, its true purpose is to provide a method for Rangemore to acquire royalties in the independent film productions without a large cash outlay. Rangemore will negotiate profit sharing arrangements with film producers in exchange for use of the use of studios (cost set-off against a contracted agreement for profit share). This is a cost effective way for Rangemore to build a portfolio of revenue producing film royalties.
The film royalty side of the business is where the large returns come from and is where the main thrust of business lies. Low budget pictures produced by independent production companies in the past have been able to routinely generate revenues in excess of $2 million when one considers not only theater, but pay-per-view, home video, foreign and ancillary revenues. Looking at the top low budget independently produced pictures, the average 10-year gross was in the neighborhood of $9 million while the top 8 grossed more than $30 million and the number one picture earned just over $120 million. Occasionally, feature films produced for less than $50,000 will gross hundreds of thousands or even break the multi-million dollar mark. The table below lists the top ten independent movies with the lowest budgets that have exceeded $1 million in gross revenue. It is Rangemore's intention to utilize the studio properties as means to acquire an interest in these types of independent film projects and over time grow a large portfolio of revenue producing film royalties. This is the core business of Rangemore.
|Movies With Lowest Budgets to Earn $1 Million at US Box Office|
|Release Date||Movie||Distributor||Budget||US Gross||Worldwide Gross|
|4||8/1/1997||In the Company of Men||Sony Classics||$25,000||$2,883,661||Unknown|
|8||8/9/1995||The Brothers McMullen||Fox Searchlight||$50,000||$10,426,506||Unknown|
|9||5/7/2004||Super Size Me||IDP/Sam Goldwyn||$65,000||$11,529,368||$29,529,368|
Rangemore currently has a preliminary agreement to participate in the royalties of one independent film production and is in negotiations for another two.
About Rangemore Film Productions Corp.
Rangemore Film Productions Corp. is a publicly traded company who in the business of operating film studios and co-producing independent film productions.
Rangemore is currently in the process of identifying and acquiring studio suitable properties in four key markets: Asia; South Africa; Europe and North America. Potential acquisition sites will have to meet certain criteria including: a low cost per square foot; easy conversion into usable studio space; established local infrastructure; establish local film industry; limited or non-existent competition; available government tax incentives and mortgage financeable. The identified acquisitions will be either purchased outright utilizing debt funding and tax credit incentive programs or leased on a long term basis.
Along with the studio operations, Rangemore will be actively investing in and co-producing independent film productions. Currently Rangemore has a preliminary agreement to participate in the royalties of an independent film production being developed in the United Kingdom. The agreed upon terms will allow Rangemore to purchase interest in the film royalties in exchange preferred shares for up to a maximum of 10% of the total royalties. The final terms and a definitive agreement are in the process of being prepared.
Rangemore Film Productions Corp. is a Development Stage Company, as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 915, Development Stage Entities, and has not yet generated significant revenues from their intended business activities.
Forward Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Rangemore Film Productions Corp.'s filings with OTCMarkets which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
SOURCE Rangemore Film Productions Corp.