Platinum Studios Prepares for Over-the-Counter Trading

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Platinum Studios Inc., home to the world’s largest library of independent comic book characters, has filed for a direct public offering that would make the company’s stock available for over-the-counter trading.


The Los Angeles-based studio, which specializes in developing its comic library into entertainment and feature film content, raised $5 million in advance of the offering from private individual investors.


“Men in Black” is among Platinum’s best-known properties and the studio has teamed with major players such as Sony, Universal, Disney and Lions Gate. Platinum was founded in 1997 and now has nearly 30 employees.


Brian Altounian, Platinum’s president, has a background in taking tech-related companies public, having served as chairman of XsunX Inc. and on the board of early-stage tech firms Machine Talker and Cereplast. Altounian invested $1 million of his own money for an equity stake in Platinum. Company executives first began discussing taking the company public less than two years ago; they began raising money in October and officially completed the financing in April.


Platinum has issued about 200 million shares altogether, though only one-third of those about 65 million shares will be in the public float.


“We saw banks and hedge funds jumping into the entertainment industry; there’s a lot of cash out there,” Altounian said. “When we saw what was available to us, we wanted to take matters into our own hands. It’s a great growth strategy and we’ll have access to capital without having to give up complete control of the company.”


The SEC will review the filing a process that typically ranges from 30 days to six months. Altounian said the company is hoping to complete the process by year’s end.


The $5 million was raised from a group of more than 200 investors. Altounian described the group as “close to (founder) Scott Rosenberg and me. There was no broad solicitation.”


The company’s goal, according to executives, is to expand the comics-to-film successes in all directions: toys, video gaming, wireless, online and even apparel.


This summer, DreamWorks Studios and Universal Pictures acquired the rights to Platinum Studios’ best-selling graphic novel “Cowboys & Aliens.” Academy Award winners Brian Grazer and Ron Howard are on board to produce the project for Imagine Entertainment.



Lions Gate’s Mandate

In a much-anticipated acquisition, Lions Gate Entertainment Corp. has purchased independent production and distribution outfit Mandate Pictures.


The $56.3 million acquisition is comprised of $44.3 million in cash and $12 million in stock to be released over an 18-month period. In addition, Lions Gate will assume about $6.6 million in debt from Mandate, which will be retired immediately.


Among the benefits Lions Gate is counting on from the purchase are growth for its library, strengthened executive ranks and an increased ability to secure international rights to films released by other major studios.


The move returns Joe Drake to Lions Gate as co-chief operating officer and president of Lions Gate’s Motion Picture Group. He’ll have oversight of all areas of theatrical production, distribution, marketing, acquisition and international theatrical operations. Drake will continue as CEO of Mandate, which will continue to operate under its existing brand as an autonomous entity under new president Nathan Kahane. It will continue to operate from its current Beverly Hills offices with its creative team in place.


In the six years since Drake left his position as head of Lions Gate’s international distribution division, he founded Mandate, which has been behind projects such as “Stranger than Fiction” and the upcoming family film “Mr. Magorium’s Wonder Emporium,” a collaboration with Walden Media.



Odd Lot for Image

After years of effort, Image Entertainment Inc. has landed theatrical rights to two feature films from Odd Lot Entertainment LLC.


Image and Odd Lot announced the deal last week, which covers U.S. theatrical and home video rights, as well as non-broadcast digital rights, to Odd Lot’s “Suburban Girl” and comedy Western “Undead or Alive.”


The Chatsworth-based company, which until now functioned as a CD and DVD distributor, will bypass theatrical release for “Undead or Alive” and release it straight to home video in December.


“Suburban Girl” is scheduled for release sometime next year, and the two companies are still deciding whether the film will see a theatrical debut. Image is known largely for its DVD library, which contains a large amount of urban and comedic fare. It is expected to complete its merger with BTP Acquisition Group, an investor group led by David Bergstein, by the end of next month. Image has about 3,000 exclusive DVD titles and about 250 exclusive CD titles domestically, as well as approximately 450 programs internationally via sublicense agreements.



Anne Riley-Katz can be reached at (323) 549-5225, ext, 225, or at [email protected]

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