Mr. Charles Spackman reports

SPACKMAN EQUITIES GROUP ENTERTAINMENT SUBSIDIARY LAUNCHES IPO IN SINGAPORE

Spackman Equities Group Inc.'s entertainment subsidiary, Spackman Entertainment Group Ltd. (SEGL), one of Korea's leading theatrical film production groups, registered its offer document and launched its initial public offering on Friday, July 11, 2014, in Singapore. SEGL is seeking a listing on the Catalist board of the Singapore Exchange Securities Trading Ltd. (SGX-ST).

Commenting on the registration, Spackman chairman and chief executive officer Charles Spackman, who is also the executive chairman of SEGL, said: "We are delighted to launch our initial public offering in Singapore. Korean entertainment content has been well received in Singapore and other markets in Southeast Asia. This is in line with the growing demand for Korean entertainment content in overseas markets in recent years, especially in Asia.

"Through our listing, we are looking to establish a channel through which investors in Singapore and in the region will have a unique opportunity to invest directly in the growth of the Korean film and entertainment industries. The listing will increase our visibility in the region and benefit our international business expansion efforts."

The offer document was registered on July 11, 2014, and the placement will close on July 18, 2014, at 12 p.m. Singapore time (July 18 at 12 a.m. ET). Listing and the first day of trading on the SGX-ST are expected on July 22, 2014, at 9 a.m. Singapore time (July 21 at 9 p.m. ET).

Under the IPO, SEGL will offer 69.44 million shares, comprising 50 million new shares and 19.44 million vendor shares at 26 Singapore cents (22 cents) per share. Postlisting, SEGL's enlarged share capital will be 395.31 million shares, and it will have a market capitalisation of $102.78-million (Singapore) ($88.31-million).

SEGI owns 154.62 million shares of SEGL, which will represent 39.1 per cent of the total outstanding shares postlisting. Based on the IPO offering price of 26 Singapore cents (22 cents) per share, the implied value of the company's stake in SEGL will be $40.2-million (Singapore) ($34.5-million), or 23 cents per share.

SEGL intends to utilize the net proceeds of approximately $10.84-million (Singapore) ($9.31-million) from the placement to invest into films produced by SEGL or third parties; expand the company's operations via acquisitions, joint ventures and investments; establish overseas offices; and for general working capital purposes.

Anthony Wei Kit Wong, a director of the entertainment subsidiary, SEGL, who was also recently elected as a director of the company at the annual general meeting held on June 12, 2014, has decided not to serve on the board of the company in order to avoid any potential conflicts of interest between the two entities. The company will be appointing a new independent director in the near future.

We seek Safe Harbor.