Mr. Charles Spackman reports
SPACKMAN EQUITIES GROUP REPORTS SECOND QUARTER 2014 RESULTS
Spackman Equities Group Inc. (SEGI) has released its financial results for the second quarter and the six months ended June 30, 2014.
For the second quarter ended June 30, 2014, revenue was $6.9-million and for the six months ended June 30, 2014, revenue was $10.0-million. The revenues for both the three- and six-month periods ended June 30, 2014, are records for the company.
For the second quarter ended June 30, 2014, the company recorded a loss of $894,000, or 0.6 cent per share, and for the six months ended June 30, 2014, the company recorded a loss of $1.6-million, or one cent per share. After accounting for foreign exchange gains, the comprehensive loss for the second quarter ended June 30, 2014, was $210,000, or 0.1 cent per share, and for the six months ended June 30, 2014, the comprehensive loss was $955,000, or 0.6 cent per share. The company's subsidiaries, Zip Cinema Co. Ltd. and Opus Pictures LLC, have a number of films under production, and the costs associated with the production of these films negatively impact the company's earnings until the films are released. For the second quarter ended June 30, 2014, direct production costs were $6.2-million and for the six months ended June 30, 2014, direct production costs were $8.8-million.
At June 30, 2014, SEGI had $9.6-million, or six cents per share, in cash or cash equivalents and marketable securities.
Commenting on the second quarter results, Charles Spackman, the chairman and chief executive officer of SEGI, said: "I am very pleased with the resounding success of the listing of our subsidiary, Spackman Entertainment Group Ltd. [SEGL], on the Catalist of the Singapore Exchange in July. The initial public offering financing was fully placed and raised gross proceeds of $18.1-million (Singapore) ($15.8-million) and the shares of SEGL have actively traded on the Catalist at a significant premium to the IPO price of 26 Singapore cents (22 cents) per share. The company owns 39.1 per cent of SEGL, and based on the most recent closing price of SEGL's shares of 40 Singapore cents (35 cents), the market value of the company's stake in SEGL is $61.8-million (Singapore) ($53.8-million), or 36 cents per SEGI share. The company is exploring various options through which it can optimally reflect the value of its holdings in SEGL on the company's share price for the benefit of shareholders and to reduce or eliminate the discrepancy between the value of the company's shares relative to the underlying value of its stake in SEGL."
The complete financial statements for the three and six months ended June 30, 2014, including management's discussion and analysis of the results, are posted on SEGI's website and are also available on SEDAR.
Selected highlights of the second quarter and subsequent events
- On May 13, 2014, UAA Korea Co. Ltd. repaid $1,019,159 (U.S.) ($1,109,146) of convertible notes issued on Jan. 17, 2014, with all
accrued interest to the company.
- On June 12, 2014, all shareholders of Spackman Entertainment Group
Ltd. (SEGHK), including the company, exchanged all of their shares
of SEGHK for a corresponding number of new shares of Spackman
Entertainment Group Pte. Ltd., a Singapore entity formed for the purpose
of listing, as part of the restructuring exercise for the initial public
offering in Singapore, resulting in SEGHK becoming a wholly owned
subsidiary of Spackman Entertainment Group Pte. Ltd. Prior to this share
exchange, on April 25, 2014, SEGHK converted all its outstanding
convertible notes in the amount of $1,385,421 ($1.5-million (U.S.)) at the
conversion price of $1,000 (U.S.) resulting in the issuance of 1,500 new
common shares of SEGHK, and SEGHK closed another round of pre-IPO
financing by raising a total of $4,596,288 (U.S.) ($5,068,786) by way of
a private placement to three investors by issuing 1,776 common shares at
$2,588 (U.S.) per share.
- On June 24, 2014, Spackman Entertainment Group Pte. Ltd. changed its
name to Spackman Entertainment Group Ltd. as required by
Singaporean regulations governing the conversion of a private company
into a public company.
- On June 24, 2014, the company appointed Alex Falconer as chief financial
officer. Mr. Falconer succeeds Kyoungwon Na, who continues to serve as
the chief financial officer of SEGL. This restructuring of management
was undertaken in advance of the planned listing of SEGL on the Catalist
of the Singapore Exchange to avoid any potential conflicts of interest
between the company and SEGL.
- On July 3, 2014, SEGHK changed its name to Spackman Entertainment Group
(H.K.) Ltd. in order to avoid confusion with SEGL, its parent company.
- On July 11, 2014, SEGL registered its offer document and launched its
initial public offering in Singapore.
- On July 14, 2014, the company announced that Anthony Wei Kit Wong, who
was elected a director of the company at the annual general meeting held
June 12, 2014, and who is also a director of SEGL, had decided not to
serve on the board of the company to avoid any potential conflicts of
interest between the company and SEGL. The company intends to appoint a
new independent director in the near future.
- On July 18, 2014, the IPO placement was fully placed and closed, and
SEGL sold 69.44 million shares, comprising 50 million new shares and
19.44 million existing shares at 26 Singapore cents (22 cents) per share, raising
gross proceeds of $18.1-million (Singapore) ($15.8-million).
- On July 22, 2014, the shares of SEGL commenced trading on the Catalist of
the Singapore Exchange under the symbol 40E. The company owns
154.62 million shares, or 39.1 per cent, of SEGL.
- On July 30, 2014, the company granted stock options to five directors of
the company to acquire up to an aggregate of 8,745,000 common shares of
SEGI under the company's stock option plan. The stock options are
exercisable at a price of 13.5 cents per share and expire five years from
the date of grant or earlier in accordance with the plan.
We seek Safe Harbor.
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