VANCOUVER, CANADA, May 13, 2013 – Rainmaker Entertainment Inc. (TSX – RNK) announced today its results for the three months ended March 31, 2013. The Company reported a loss of $694,313 ($0.04 per share) for the first quarter of 2013 compared with a loss of $958,291 ($0.05 per share) for the first quarter of 2012.
Michael Hefferon, President and Executive Producer, commented, “The first quarter of 2013 was a transition quarter for us. After sucessfully delivering Escape From Planet Earth to The Weinstein Company in late December our efforts turned to our latest feature film production, Ratchet and Clank. We expect full production to commence on Ratchet and Clank later this month and are extremely pleased with the response we have had publicly to the trailer for the movie.”
Mr. Hefferon continued, “An important difference with respect to Ratchet and Clank is that Rainmaker is making an investment in the film and as such, unlike our current production service contracts, we will not recognize revenue until the completed film is distributed.”
Mr. Craig Graham, Chief Executive Officer, added, “During the quarter we announced a rights offering for 8% unsecured convertible debentures and we are pleased to report that the Company raised $5.1 million on closing of the offering in early April.”
Mr. Graham concluded, “The key to turning our business around is to better utilize our studio capacity and to fill that capacity with a mix of production service contracts and productions that we invest and have ownership in, such as Ratchet and Clank. We are actively pursing new opportunities to realize the full potential of our studio capacity in order to become profitable. As we work to accomplish our stragegy, management continues to focus on controlling costs.”
Certain information set forth in this press release contains “forward-looking statements”, and “forward-looking information” under applicable securities laws. These statements relate to future events or future performance and include, but are not limited to, statements regarding the timing of the Rights Offering. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, and similar expressions are often used to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. In evaluating these statements, readers should specifically consider risks which may cause actual results to differ materially from any forward-looking statement. The forward-looking statements contained herein are based upon certain assumptions considered reasonable at the time they were prepared. Such assumptions include, but are not limited to, assumptions regarding: (i) general economic conditions, (ii) Rainmaker’s future business prospects and opportunities, and (iii) Rainmaker’s ability to complete any or all of its proposed production work. Should one or more of the risks or uncertainties identified herein materialize, or should the assumptions underlying the forward-looking statements prove to be incorrect, then actual results may vary materially from those described herein. In respect of Rainmakers business generally, readers should also refer to Forward-looking Statements in the Management Discussion & Analysis for year ended December 31, 2012. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable securities laws, Rainmaker does not assume any obligation to update the forward-looking statements contained herein.
About Rainmaker Entertainment
Rainmaker Entertainment Inc., a multifaceted animation studio, is one of Canada’s largest producers of CG animation. Rainmaker’s first feature film Escape from Planet Earth, distributed by The Weinstein Company, enjoyed its theatrical release on February 15, 2013. For more information, go to www.rainmaker.com.
Further information, available at:
Contact: Shawn Turkington
Tel: (604) 714-2600
Fax: (604) 714-5990