NEW YORK, NY--(Marketwired - Mar 30, 2017) - Cre8tive Works, Inc. (OTC PINK: FILM) (the "Company" or "Cre8tive") would like to announce that it recently signed a non-binding Letter of Intent with Runaway Pictures ("Runaway") to fund the full length horror film Vineyard.
"We are very pleased to have signed Vineyard as our first commercially viable full length film production," announced Lisa Nelson, President of Cre8tive. "Low budget horror films traditionally have some of the best rates of return in the film industry. We are confident that with its story line and the experienced production team, Vineyard will be no exception and deliver a high return on our investment. We encourage all our shareholders to view the trailer to Vineyard at www.vineyardthemovie.com," continued Ms. Nelson.
The process of the proposed transaction will involve the following:
- Runaway will incorporate a new British Columbia based corporation (the "Production Co") for the purpose of developing the Film Project.
- Runaway will transfer all rights and interests in the Vineyard to Production Co.
- Cre8tive will arrange to have the funds to be used to develop the film project advanced to Production Co under a loan structure.
- Production Co will develop and market the Vineyard.
- Production Co, with the assistance of Cre8tive, will apply for all available provincial and federal tax credits.
- Production Co will pay back loan from Cre8tive out of the provincial and federal tax credits.
- Balance of net revenues of the Vineyard will be allocated on a predetermined basis in perpetuity.
For advancing the funds to develop the Vineyard, Cre8tive will received the following consideration:
- Interest - Cre8tive will receive interest on any and all outstanding principle at the rate 8% per annum.
- Producer Fee - Cre8tive will be entitled to charge Production Co a producer fee.
- Royalties - Cre8tive will be granted 25% of all net royalties generated by the Vineyard in perpetuity.
One year after the death of her father, Jana Davies travels to a picturesque summer house to attend a family wedding, where she must face the guilt over her father's death, and a malicious and violent spirit which haunts the summer house and threatens her entire family. After surviving a horrible car crash, which resulted in the death of her father, thirty-something Jana Davies must return home one year later to attend a bittersweet family wedding. Upon arrival, the summer house seems too good to be true. But when it comes to her family, there seems to be nothing but fake smiles and looks of judgment. The guilt of surviving that fatal car crash weighs hard upon Jana's shoulders. The reunion and prenuptial planning take a turn for the worst when Jana and her family begin to realize that perhaps they're not the only ones inhabiting the house. Footsteps, whispers, uninvited bed guests, eerie reflections and an ominous figure in the woods that appears to want in. After unveiling the mystery surrounding the summer house and the origins behind the creature in the woods Jana realizes that running from a threat, like she had after that fatal accident, isn't an option this time. It's time to stay and fight!
The Horror Market
"Fans are often surprised to discover that horror is the most profitable film genre & the best investment studios can make." - Mark Zucker, President, Sony Pictures, 2015. Horror is a genre that never goes out of style. Horror films provide the best risk/reward ratio in the movie industry, and often enjoy box office success and video/DVD sales without major stars. They have lower budgets than other genres, and they have a loyal audience in the most desirable demographic (18-35 year old males). Low-budget horror movies are a major economic force within the film industry. The Blair Witch Project grossed over $200 million, Saw took in over $100 million, and Cabin Fever has already grossed over $60 million in all markets. All of these films were produced for under $200 thousand dollars. Global Box Office revenues for the entire industry are projected to grow US$10 billion between 2000 and 2010 to US$18 billion, according to Variety Magazine and Hollywood Reporter. The National Association of Theater Owners (NATO) reported annual domestic ticket sales of $7.5 billion by the end of the past decade, a 55 percent increase since 1990. Total Admissions were $1.6 billion, an increase of over 25 percent over the same period. Looking at 810 independently produced, low budget ($100,000 to $1.5 million) U.S. & Canadian domestic released features during the period of 2012 - 2015, the horror films generally enjoyed the most profitable return on investment averaging 140%. This research was limited to films budgeted between $100,000.00 to $1.5 million with the assumption that roughly 60% of the overall production budgets were equity financed. The horror genre is alive and kicking. From 1995 to 2014, horror films have had a 13.15 percent box office market share. And according to a Redbox survey of moviegoers, 70 percent watched a scary movie last Halloween. Studios love to take on these low-budget projects, hoping to find the next generation-defining scare. If worse comes to worst, they can be content to simply make their money back several times over.
About Runaway Pictures
Runaway Pictures is Vancouver's newest independent film production company. Their vision is to create interesting and exciting films, using the best place on earth with the most talented and creative people in the industry.
About Cre8tive Works, Inc.
Cre8tive Works is traded under the uniquely fitting ticker symbol 'FILM' and specializes in the financing of production ready, independent films that have great potential for financial success. The Company's mission is to identify projects that strike a balance between artistic integrity and commercial viability for the international market and to develop strong relationships with independent filmmakers that will assist them in bringing their vision to fruition while ensuring a solid financial return.
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 Cre8tive Works, Inc.'s filings with OTC Markets which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
Safe Harbor Statement
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.