We are initiating sponsored research coverage of Medient Studios, Inc. (MDNT) with a $2 short term target based on DCF of a 5 year proforma of 6-8 films per year and average annual $50M EPS fully diluted primarily derived from...
Special Alert: Initiating Coverage on Medient Studios, Inc: The Next Big Thing in Movie Making is Here!
Medient Studios, Inc. (MDNT)
Ok not ALL of Georgia…but everyone that counts in Savanna region.
Like I told Medient Studios CEO Manu Kumaran at the groundbreaking event, “Manu…you HAVE to get this done—promising 1000 new jobs in this part of the country is BIG…and everyone here knows how to shoot and owns about 4.5 weapons per household!”
MDNT has announced they own the ground (20 year lease with buyout), procured the studio production equipment ($40 million deal with Prime Focus Limited), acquired distribution in 150 countries (with acquisition of Atlas International GbmH deal in August)…and secured a major general contractor BL Harbert International LLC from Birmingham, Alabama to build and help finance the project.
Final leg is the construction loan/financing which we expect to be announced very shortly. BL Harbert’s financing team is assisting Medient is securing construction financing deal. We assume an equity funding of $8--$10 million to add to construction financing for Phase One—our affiliate NBT Capital Markets is working that deal as well.
Phase one of the project includes roads, utilities, a suspension bridge entrance, reception building, leaf amphitheater, main studio and outdoor shooting area.
Manu and his highly experienced production team are living in the area—they are “all in” and they are hitting ALL their deadlines…very impressive.
They have 6-8 films on their production slate for 2014…and cash flow for 2014 from production fees and Atlas International Film GmbH film distribution deals in 150+ countries should provide enough cash flow to move into Phase 2 construction in 2015.
Summary—MDNT has hit EVERY major milestone for this project and is “all in”. With all the construction pieces together we expect final construction financing quickly…and the county has commenced with $1.5 million in additional infrastructure (power sub-station, roads/ sewer extensions) to support the development.
At $40-$50 million in EBITDA earnings in 2015 on $150 million of movie production, MDNT is a $4-$5 stock. With just MDNT’s equity in the StudioPlex alone we forecast @$2.25 in value. MDNT will be eligible for uplisting to Nasdaq/NYSE Market by year end…that will help make the shares MUCH more liquid as well.
With their significant 30%+ cost advantage against Hollywood/NYC production…unlimited 30% resalable tax credits from state of Georgia and a multi-language production advantage (English/Hindi/Mandarin Chinese) for a movie going world outside the US that represents 75-80% of the box office for $15-$30 million genre movies (action/horror/CGI sci-fi), Medient’s business plan is simple and very timely.
Time to buy is NOW before the financing is in place and the stock is uplisted.
For more information on Medient Studios, check out our Initial Report.
Source: Savannah Now
Share This Article
Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
- Login to post comments
