ORLANDO, FL--(Marketwired - Jan 14, 2014) - Red Giant Entertainment Inc. (OTCQB: REDG), an innovative Intellectual Property company specializing in high quality characters and content for use in a variety of media and entertainment, announced today its first quarter report.
The three months ended November 30, 2013 were largely in transition into the next phase of the Company's business model after refining market pathways and establishing viable new Intellectual Property over the preceding financial periods. Included in the many operational shifts was the (i) Supply Agreement with Diamond Comic Distributors, Inc (DCD) dated November 25, 2013 and effective January 1, 2014; (ii) transitioning our Collected Book line to be distributed through DCD for book store sales and specialty book sales; and (iii) focusing efforts on transitioning from paid-book sales to production of a "Giant-Size" line of titles that will be provided at no charge, with revenue being earned through selling advertising in such Giant-Size titles.
"We are gearing up the bulk of our publishing activities for our advertising-supported 'Giant-Size' comic book line," explained Benny Powell, CEO, Red Giant Entertainment Inc. "This means that we have had to make two major changes concerning our current largest profit centers: Book Sales and Creative Services."
"Diamond Comic Distribution and its book division, Diamond Books Distributors, are now handling all facets of Red Giant book distribution. We have already received invoices prior to the end of that quarter, which are not reflected in the revenue reported today. The Company hopes to grow these revenues rapidly over the coming months, but more importantly, Diamond is a crucial component for our Giant-Size Line."
Diamond, the world's largest distributor of English-language comic books, graphic novels, and pop culture products, has formally agreed to carry Red Giant's full line of Giant-Size ad-supported free print comic books throughout their "direct market" network of 2,638 stores, as well as expand Red Giant's distribution to bookstores in the US and UK markets via Diamond Book Distributors.
Powell further explained, "Likewise, we have had to re-task our resources from our typically profitable sector of Creative Services to the efforts necessary to build the Giant-Size line. While Creative Services will remain a platform of profit moving forward, it is unlikely to rival the immense revenue and exposure we expect to achieve with the Giant-Size line."
Due to these changes' effect on our operations, we incurred significantly greater operating expenses and significantly lower revenues and profits for the three months ended November 30, 2013 as compared to the three months ended November 30, 2012. Nevertheless, our management believes that the Changes will eventually lead to greater profitably and more stability for our business and our prospects in the future, particularly if we are able to successfully launch our Giant-Size line of titles.
"We understand that transitions can be difficult, but every indication is that we are well on our way to achieving all of our goals. For instance, the addition of Kris Longo for advertising sales director was a crucial aspect that has now fallen into place. We are immensely excited at what these and other relationships we are in final stages of forging will afford us in the coming weeks and months ahead."
Diamond Comic Distributors was established in 1982 to provide comic book specialty retailers with wholesale, non-returnable comic books, graphic novels and related pop-culture merchandise. After more than 30 years of service, Diamond has become the world's largest distributor of English-language comics, graphic novels, and related pop-culture merchandise, with a network of shipping and distribution throughout the world.
Red Giant provides news and updates at the following online locations.
http://redgiantentertainment.com and on https://www.facebook.com/RedGiantEntertainment
ABOUT RED GIANT ENTERTAINMENT INC.
Red Giant Entertainment Inc. (OTCQB: REDG) is a Nevada corporation that specializes in intellectual property (IP) development for multiple media platforms and transmedia propagation. The cornerstone of this development is based around the more than three dozen online and print graphic novel properties in various stages of production as well as the cast of thousands of characters from those series. These properties have a readership that numbers in the millions globally. Some of these properties are actively in development into other media such as movies, video games, television, novels, toys, apparel, applications, etc. through either direct production or licensing agreements.
Forward Looking Statements
This press release may contain "forward-looking statements." Any statements that are not statements of historical fact, including but not limited to statements containing the words "believes," "plans," "anticipates," "expects," "look forward," "estimates" and similar expressions, should be considered to be forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, to include acquisition, production, marketing, distribution, competition with related patent, trademark and license issues involving contractual obligations and concessions. The Company does not assume any obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law. The Company files annual, quarterly and current reports, proxy and information statements and other information with the Securities and Exchange Commission. This press release should be read in conjunction with all of the reports that the Company has previously filed with the Securities and Exchange Commission for financial and other information about it. The references to the websites http://redgiantentertainment.com and www.facebook.com have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.