Spackman Equities Group Inc.

Spackman Equities Group Inc.

August 03, 2012 08:16 ET

Spackman Equities Group Establishes Movie Investment Venture in Korea

Spackman Entertainment Korea Inc. to Invest into Upcoming Slate of Films Produced by Opus Pictures and Zip Cinema

TORONTO, ONTARIO and SEOUL, KOREA--(Marketwire - Aug. 3, 2012) - Spackman Equities Group Inc. ("SEGI") (TSX VENTURE:SQG) announced today that it established a wholly-owned subsidiary in Korea, Spackman Entertainment Korea Inc. ("SEK"), that will specifically invest into the upcoming slate of films produced by Opus Pictures Co., Ltd. ("Opus") and Zip Cinema Co., Ltd. ("Zip"). Opus and Zip are both Korean movie production subsidiaries of SEGI.

SEGI incorporated SEK with a paid-in-capital of Korean Won 990,000,000 (CAD 880,000), resulting in SEGI owning 198,000 common shares (par value KRW 5,000 per share), or 100%, of SEK.

Through SEK, SEGI plans to selectively make "seed" investments in the upcoming movie titles produced by Opus and Zip, positioning itself to gain economic exposure to its subsidiaries' film projects from both an investment perspective as well as from a production revenue perspective.

Opus and Zip are leading movie production companies in Korea that possess track records of producing some of the most commercially successful Korean films. Opus was the producer of the highest grossing Korean movie of 2010, THE MAN FROM NOWHERE, a KRW 6.75 billion-budget (CAD 6.0 million) action film that sold over 6.28 million tickets at the Korean box office and grossed KRW 47.9 billion (CAD 42.6 million). This year, Zip produced the hit romantic comedy, ALL ABOUT MY WIFE, a KRW 4.9 billion-budget (CAD 4.4 million) film that sold over 4.58 million tickets at the Korean box office and grossed more than KRW 34.1 billion (CAD 30.3 million). (Box office data provided by Korea Box Office Information System).

About Spackman Equities Group Inc.

Spackman Equities Group Inc. ("SEGI") is a diversified investment holding company that invests into and develops small/medium-sized growth companies that possess proprietary technologies or industry-specific know-how, primarily in Asia. The objectives of SEGI are to (i) selectively invest into or acquire businesses with compelling growth potential at attractive valuations, (ii) build a diversified portfolio of investments, and (iii) deliver the collective value derived from the performance of its portfolio of investments to the shareholders of SEGI. Currently, SEGI's investment portfolio consists of:

  • indirectly-held majority ownership of two leading Korean movie production companies, namely, Opus Pictures Co., Ltd. and Zip Cinema Co., Ltd., and

  • a 17.92% equity stake in Intech LCD Group Limited, a China-based developer and manufacturer of flat panel displays and modules.

About Opus Pictures Co., Ltd.

Opus Pictures Co., Ltd. ("Opus") was established in August 12, 2005 in Korea by veteran movie producer, Lee Tae Hun. Opus is an independent developer, producer, and investor of theatrical motion pictures in Korea. Opus is most well-known for producing the 2010 blockbuster, THE MAN FROM NOWHERE, the biggest box office success of the year with 6.28 million box office tickets sold domestically and one of the highest grossing movies in Korean movie history. Opus licenses its films to ancillary markets including cable, broadcast television, and home video/DVD. Its movies are distributed and shown throughout Asia.

Opus's production capabilities consist of the originating and financing of motion pictures, as well as the development of screenplay, actual filming activities, and the post-filming editing/post-production process. Opus works in cooperation with Korea's major distribution companies for the release of its films and selectively participates in its productions as an investor. Opus also selectively acquires distribution rights to motion pictures produced by third parties for distribution in theatrical, video and television markets in Korea.

Spackman Equities Group Inc. owns a majority equity interest in Opus through its entertainment subsidiary, Spackman Entertainment Group Limited.

About Zip Cinema Co., Ltd.

Zip Cinema Co., Ltd. ("Zip") is a Korean movie production firm founded by renowned film producer Eugene Lee, who was named in 2007 as one of the world's "10 Producers to Watch" by Variety, the leading Hollywood journal. The company was incorporated on December 23, 2005 in the Republic of Korea and engages in the development, production, financing, and distribution of theatrical motion pictures with a strong commitment to bringing the most original stories to the big screen from the most innovative Korean filmmakers. From its early days, Zip has achieved notable critical and box office success with such hits as "VOICE OF A MURDERER" (2006) which sold 3.25 million tickets at the domestic box office and "HAPPINESS," a film that premiered at the Toronto International Film Festival in 2007. More recently, "WOOCHI" (2009), with 6.2 million tickets sold domestically, became one of the highest grossing movies in Korean movie history and also achieved significant success in overseas markets. "HAUNTERS" also achieved over 2.5 million tickets domestically in 2010. Zip's most recent release, ALL ABOUT MY WIFE opened in Korean theatres on May 17, 2012, and has sold over 4.58 million tickets domestically, becoming Korea's highest-grossing romantic comedy of all time, and cementing Zip's industry-wide reputation as a serial hit-maker. Films produced by Zip are licensed to ancillary markets including new media, cable, broadcast television, and home video/DVD and its films are distributed and shown in Korea and internationally.

Spackman Equities Group Inc. owns a majority equity interest in Zip through its entertainment subsidiary, Spackman Entertainment Group Limited.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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