VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / May 1, 2014 / Gener8 Media Corp. (CSE: GNR) ("Gener8" or the "Company") is pleased to announce the Company has extended the closing date of the partnership agreement with Tianjin Fu Feng Da Movie & Television Technology Investment and Development Co., Ltd. ("FFD") from April 30, 2014 to May 23, 2014. While all other terms of the transaction have been satisfied, additional time is required by FFD to obtain requisite regulatory approvals from the government of China.
Under the terms of the extension agreement, as consideration for the extension of the closing date, FFD agreed to advance $1 million of the purchase price by May 13, 2014. This amount will become non-refundable in certain circumstances if the transaction does not close by May 23, 2014. In addition, FFD has agreed to fund 60% of the employee retention plan that the Company had otherwise agreed to fund. The parties further agreed to terminate the exclusivity period if the transaction does not complete by the extended closing date.
"We are confident the transaction with FFD will close. The relationship between our two companies will enable our 3D conversion business to continue to grow and prosper in the future. Gener8 has already been pursuing opportunities to convert films from China over the next year which will immediately enhance this new partnership," says Ken Scott, Gener8 President. "Working with a Chinese company, we have grown to respect the time it takes to complete the various approval levels as companies from China invest outside their homeland."
Gener8 Media Corp. is a media technology company led by a team of gaming industry veterans. At the forefront of postproduction, the Company earned its stripes by developing a proprietary 3D conversion technology, garnering high-profile credits including "300: Rise of a Empire," "The Amazing Spider-Man," "Prometheus" and "Harry Potter." Gener8 has since expanded into offering visual effects services and a cloud-based data management and analytics solution called Cumul8. With its focus on developing disruptive solutions that combine design and technology, Gener8 funded and then acquired a majority interest in Reelhouse Media Ltd., an online entertainment distribution start-up. Gener8's head office is located in Vancouver, British Columbia and currently has over 200 employees. Visit the company website at www.gener8.com.
ON BEHALF OF THE BOARD OF THE COMPANY
Chief Executive Officer and Director
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Forward Looking Statements
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. In particular, forward-looking statements in this press release. Although Gener8 believes that the expectations reflected in the forward-looking statements are reasonable; there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: closing the definitive agreements respecting the transaction with FFD, obtaining all regulatory and third party consents, meeting our contractual timelines and milestones on our 3D film conversion contracts; general economic conditions in Canada and globally; film industry conditions; competition for, among other things, capital and skilled personnel; changes in economic and market conditions that could lead to reduced spending on 3D film conversion; potential delays or changes in plans with respect to deployment of services or capital expenditures; our ability to hire and retain qualified employees and key management personnel; possibility that government policies or laws may change; amount and timing of operating costs and capital expenditures; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; reliance on a limited number of suppliers; risks related to the Company's competition; the Company's failure to adequately protect its intellectual property; interruption or failure of information technology systems; the risk that the transaction may not be completed as planned, or at all; and business, legal and/or regulatory risks relating to Gener8's business, financings and strategic acquisitions. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.