Liquid Media Group Ltd. (“the Company,” “Liquid Media” or “Liquid”)
(Nasdaq: YVR) today announced the signing of a letter of intent
(the “LOI”) to acquire Digital Cinema United Holding Ltd. (“DCU”),
which provides content supply chain technology and services
supporting independent intellectual property (IP) owners,
producers, sales agents, alternative content distributors,
downstream media platforms and studios. Under the terms of the LOI,
Liquid would acquire DCU for up to 3,750,000 shares, and DCU must
achieve revenues totalling over US$15M to trigger two of the three
equal tranches. Additional cash will be invested in DCU’s ongoing
operations, beginning with immediate availability of a secured
bridge loan in the amount of $1.15M, to be applied towards working
capital and growth of its business.
Supporting the big picture from content source
file creation to distribution, DCU’s supply chain offers a full
suite of primary asset creation services to present video, audio
and data stream files with pristine clarity. DCU creates localized
deliverables to assure international delivery, provides best
practice hybrid solutions for content fulfillment across 40+
countries, and offers theatrical and downstream services under one
roof with deliveries to the majority of the world’s digital
platform providers.
“We are excited to add DCU as an integral
component of our four-stage business solutions engine, bringing
vital, next-generation technology that puts independent IP creators
of all sizes and types on an even playing field with major studios
across production services, international servicing, as well as
theatrical and digital distribution,” said Ron Thomson, CEO of
Liquid Media.
“DCU is delighted to join the Liquid Media
ecosystem. Liquid’s vision is in line with our ambitions and having
a multi suite of tools and services that provide innovative
solutions for the future of content distribution is exactly what
our industry needs,” said Alan Christensen, CEO for Digital Cinema
United. “DCU provides an incredibly scalable architecture that is
highly utilized and well integrated across multiple levels of the
supply chain. We look forward to channelling into more areas of
content flow and bringing added value to our customers and
exhibition partners.”
End-to-End Excellence for Supply Chain
Services
In production services, DCU works with IP owners
and producers to create the primary content source files that act
as the fundamental backbone for the global deliverables of
distribution.
The next stage in the technology supply chain
covers global servicing, as DCU collaborates with international
sales agents to ensure delivery schedules comply with distributor
expectations before starting the process of asset creation for
delivery. DCU provides Digital Cinema Package (DCP) versioning with
full localization, home video materials, broadcast deliverables,
and all digital distribution files complying with up-to-date
specification sheets for all different content platforms. The DCP
file format is the name given to the collection of digital files
sent to a cinema or streaming platform.
DCU distribution leverages a trusted global
network featuring eDelivery to handle distribution across 40+
countries in North America, Latin America, Australia, New Zealand,
Europe, the Middle East and Africa. This link in the supply chain
enables studios, mini-majors and majors, to consolidate
distribution across various territories via a widespread network
while simultaneously bringing local DCP service solutions to
independent distributors from within each territory.
The final piece of DCU’s content supply chain is
comprised of digital and downstream distribution services. DCU’s
home entertainment division has authored, encoded, and delivered
thousands of DVD, Blu-ray, and VOD titles for clients to major
retail chains as well as iTunes, Amazon, Google Play, Hulu, and
many other digital platforms.
Added Thomson, “We couldn’t be more proud of the
cross-platform capabilities we are building out across intelligence
and analytics, financing, technology, and monetization, so that IP
owners working with Liquid have a professional, reliably managed
solution to drive sustainable growth. DCU will play a vital role in
technology services and we are delighted to be welcoming them into
the Liquid business family.”
Final terms of the acquisition will be
negotiated and memorialized in binding and definitive documentation
to be entered into at or prior to closing. Completion of the
acquisition is subject to customary due diligence, documentation
provisions and any necessary share issuance requirements and
approvals.
About DCU
Digital Cinema United (DCU) is a global provider
of technical content services for theatrical, home entertainment,
and digital distribution platforms, with operations in Los Angeles,
London, Malta, Prague and South Africa. DCU supports the
distribution of content for Hollywood majors, independent studios,
event cinema distributors, and renowned producers and content
owners worldwide through DCP Production and DCP Delivery services
of feature films and movie trailers to all cinemas in North
America, Europe, Middle East, Africa, Australia and New Zealand.
DCU also provides International Servicing with Localization
worldwide and direct delivery to Video-On-Demand (VOD) streaming
platforms. DCU operates TPN (Trusted Partner Network) certified
facilities across all of its regions.
Additional information is available at
https://digitalcinemaunited.com/.
About Liquid Media Group
Ltd.
Liquid Media Group Ltd. (Nasdaq: YVR) is a
business solutions company empowering independent IP creators.
Liquid’s end-to-end solution will enable professional video
(film/TV and video game) creation, packaging, financing, delivery,
and monetization, empowering IP creators to take their professional
content from inception through the entire process to
monetization.
Additional information is available at
www.LiquidMediaGroup.co.
Further information:
Primoris Group+1 (416)
489-0092pg@liquidmediagroup.co
Media requests:
Investor / BusinessAdam
BelloMedia & Analyst Relations ManagerPrimoris Group Inc.+1
(416) 489-0092 x 226media@primorisgroup.com
IndustryJane OwenJane Owen PR+1
(323) 819-1122 jane@janeowenpr.com
Cautionary Note Regarding
Forward-Looking Statements
This news release includes statements containing
certain "forward-looking information" within the meaning of
applicable securities law ("forward-looking statements").
Forward-looking statements are typically identified by words such
as: "believe", "expect", "anticipate", "intend", "estimate",
"potentially" and similar expressions, or are those, which, by
their nature, refer to future events. Such forward looking
statements include, but are not limited to, that the Company will
be able to consummate the acquisition of Digital Cinema United
(DCU), and that DCU will continue to increase its revenues. These
statements should not be read as guarantees of future performance
or results. Further, such statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results, performance, or achievements to be materially different
from those implied by such statements. Such factors include, but
are not limited to: developments related to the COVID-19 pandemic,
regulatory actions, market prices, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. Forward-looking statements are based on
the beliefs, estimates and opinions of the Company's management on
the date the statements are made. The Company is under no
obligation, and expressly disclaims any intention or obligation, to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
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