Issue 21.2, Auckland, 19 April 2021
We are currently underwriting a film project from a production team called FilmCube. The referral came from an Obris members who invested in their previous project.
That member made a significant return on his investment last year and recommended that we underwrite the next and larger project, a Sci/Fi Thriller titled 0600.
The first images in my mind included scenes from two of my favorite TV series, Entourage and Get Shorty. Producing a movie sounds glamorous, but at the end of the day it takes a great deal of work, expertise and ingenuity to succeed.
It takes a competent production team with the right script, and an executive producer who knows the ins and outs of financing, promoting, distributing and selling movies.
In this era, it also requires successfully navigating the many caveats and potential restrictions, and mining for hidden rewards and incentives to produce when much of the world is in a state of Covid induced paralysis.
We have completed due diligence on this team and can confirm they have had successful exits in their previous projects including returns in the multiples in excess of 40%.
Curating Bespoke Deals
While I have every intention to tell you about 0600, this issue of the Global Investor is really about the deals we curate for Obris members.
As a reader of the Global Investor, you know that bespoke investments are one of the three Obris pillars – People, Places and Deals.
We are at our best when we curate bespoke deals for Obris members. When you consider the portfolio of investments that we have developed over the past nine years, our best performance and our best exits (with a few exceptions) have been derived from deals that we have hand-crafted.
What do these investments have in common?
- We define the terms of the deal to guide the best possible outcomes for our members.
- We craft deals where the Obris team and investors have a hands-on role to strengthen the company with our expertise.
- We control the outcome including setting limits for liquidity and enhancing securitization to reduce risk for investors.
Introducing 0600
If you are VFX (video effects) sci-fi/horror movie buff you will likely find the synopsis of 0600 compelling. It is a War of the Worlds meets Collateral genre of movie.
Mia, A single other struggling to earn money for her young son, lives her life with her head down, never challenging authority or making waves for fear of losing her job or her apartment. She works as a cab driver, nightly ferrying people around Bangkok.
One night after picking up a mysterious client, she will face a night of horror, one that will force her to finally find an inner strength the she never knew she had.
0600 will be filmed and produced in Bangkok. This VFX thriller will include live filming as well as extensive VFX animation. According to the producer Adam Smith, his crew will have optimum control of their shooting environment in the midst of Covid-19. They know the lay of the land and they feel that practically and visually Bangkok is the best place to shoot. Adam added, “It’s an alien invasion of Bangkok…simply never done before.”
Vetting the Opportunity
This is not a Hollywood blockbuster with an A-list cast. It is a genre piece that appeals to a large but specialized global audience. With the right production team, world class VFX talent and a carefully choreographed strategy for distribution and sales, 0600 has considerable potential to succeed.
We met with the production team. We carried out due diligence on the team and their past films. We analyzed and vetted their very detailed model from pre-production to distribution.
We saw an opportunity to craft a winning deal for Obris members.
Making Money for our Member Investors
Our main objective is to monetize this film as best we can.
It has all the right elements to get it right including a recognized Hollywood writer, Philip Gellat, an incredible VFX team, and Stephan Zlotescu as a producer who specializes in post-production/VFX.
It is being produced in English which will garner a wide global audience. After the movie “Parasite” there is more of a demand for Asian content.
We are investing in a project that will be artistically sexy and worthy of submitting to film festivals. We are doing this on a budget that would be inconceivable outside of the current Covid era, with a production team who will control as many variables as possible during these unprecedented times.
As the sole underwriter for 0600, we have control of the deal. We also have an active role in the financial outcome of the movie. At the end of the day, we expect to return our investment to investors with a 20% premium, plus 50% of all profits from distribution and sales.
Why Are We Investing
0600 is first and foremost an investment project with an expected positive return on investment. This was first made very clear when Marvin, Kyle and I met with Adam and his team. They are competent film makers. They are equally competent business people who know how to structure, budget, produce, sell and ultimately monetize films. We have reviewed and assessed their financials for past films and are pleased with the results.
The referring members’ ROI and his endorsement of FilmCube speak loudly.
We have control. As the sole investor, we have the rights of Executive Producer.
We can deliver a significant return in less than two years, optimally within 18 months.
An Added Incentive of Adventure
For Obris members, having fun is directly correlated with active investing and making money on our deals. We have all jumped at the opportunity to visit the set during production. In fact, we are already planning a mini Obris Summit around filming in Bangkok when the team has the green light to proceed.
Let the alien invasion begin…
0600 demonstrates well the bespoke deals we craft for our members. Such deals are at the core of what defines Obris, as is the considerable ROI we have generated for those who invest.
We introduced 0600 to our members earlier this week. Investment allocations are quickly filling. If you are an accredited investor and are intrigued by an opportunity like 0600, I strongly recommend that you get in touch with me soon.
Sincerely,
James on behalf of the Obris Team
