982 Media unveils new film financing fund
The Calgary-based firm announced Thursday a new financing model which will allow people and companies to invest in films and share in the revenue.
982 Media says they are opening the door to the movie industry for investors.
The Calgary-based film and media financing firm announced Thursday the launch of a new fund, the 982 Film Fund, which the company says will allow investors in independent productions to see greater profits, via equity participation.
The fund’s model, which differs from crowdfunding platforms such as Kickstarter, will find its new investor base in Canada’s exempt market.
“The success of donation-based crowd-funding model is evidence that the general public is interested in participating in film finance,” said 982 Media president Arti Modi, in a statement.
“The 982 Media Fund is financing films with top talent and international commercial appeal. Investors won’t simply be donating funds in order to receive a t-shirt or to see their name in the credits like they do on Kickstarter. They will actually share in the revenue as shareholders in a company that will materialise Oscar quality films,” he added.
The fund will incorporate debt financing opportunities, such as print and advertising (P&A) financing, and also offer equity participation opportunities in production financing.
982 Media also revealed that, along with its partners and investors, it will provide the P&A financing for upcoming films, including Odd Thomas, starring Willem Dafoe and Thunder Run, starring Matthew McConaughey, Sam Worthington and Gerard Butler.
“As P&A financiers, our investors earn high interest rates on the money we loan to highly anticipated projects like Thunder Run and Odd Thomas. They also participate in a percentage of the potentially huge post-box-office revenues these types of projects have,” said Modi.
The fund requires a minimum investment of $5,000 and is RRSP eligible. It is currently offered to investors though Exempt Market Dealers.