W&F Issue 7 2018

www.wealthandfinance-news.com 14 Wealth & Finance International - Issue 7 2018 MovieCoin, a leading next-generation financial technology company that is leveraging blockchain technology and cryptographic tokens to revolutionise entertainment industry financing and transactions, today announced that its first suite of innovative solutions for production companies, investors, lawyers, guilds and other stakeholders will be released this Fall. Using smart contracts, distributed ledger technology and Moviecoin Tokens—an industry-themed cryptocurrency—to improve asset transparency, workflow efficiency and revenue distribution across media and entertainment, MovieCoin is standardising financing, reporting and payment processes that have traditionally been overly complex and inefficient. A recently published Whitepaper, which is available at www.movie.io , explains in-depth the Company’s mission and how it will utilise blockchain technology and tokenisation to better manage an entertainment asset’s entire economic lifecycle, improve liquidity and reduce investor risk. “We are creating an intuitive platform that will enhance entertainment industry participants’ abilities to more easily conduct their business activities while realising time and cost efficiencies when investing in motion pictures and other media,” said Christopher Woodrow, MovieCoin Chairman and CEO. “We expect industry stakeholders who leverage our platform will be able to recoup more capital from their investments, reduce the burden on legacy backend resources and be able to cast a wider net to global investors who may be interested in deploying capital in high-quality projects at a fair value and with greater liquidity.” Film and entertainment industry participants and business owners will benefit from the following features: Innovative Smart Asset Assembly & Offerings: Film and television production financing involves numerous participants, dozens of agreements, detailed budgeting and funding processes, and distribution of proceeds statements governing payments to dozens of stakeholders, including producers, actors, guilds, financiers, lawyers, sales and collection agents. MovieCoin’s Smart Asset Assembly eliminates the complexity of this existing process. Leveraging a state-of-the-art protocol developed by BANKEX, key financing and back-office processes will now be automated, including complex legal documents, enforcing transactions and validating relevant data against source documents. The Company and its affiliates are also developing multiple entertainment finance techniques to leverage the combined power of the MovieCoin platform with Moviecoin Tokens. One initial technique is the offer and sale of securities tokens—MovieCoin Smart Asset Tokens, which will be assembled and tokenised on the Company’s platform. A combination of cash and Moviecoin Tokens would be released to the producer via the MovieCoin Platform to fund production costs of a project and the cash flows generated by the resulting completed MovieCoin Smart Asset would be paid to investors with a combination of cash or Moviecoin Tokens on the MovieCoin platform. Ultimately, the unique combination of the MovieCoin platform, Moviecoin Tokens and tokenisation of MovieCoin Smart Assets created on the Company’s platform will be used to create a global yet local film finance platform to be used by major studios, production companies, investors and lenders. • Efficient and Effective Production Cycle Control: The platform will provide a unique ability to automate tedious operational processes, including the movement of funds from investors to third parties, tracking investments in specific entertainment assets, creating and honouring production financing MovieCoin Delivers Fintech Solutions for Film and Entertainment Companies Innovative platform and tools simplify and improve onerous operational processes, financing and revenue distribution challenges. schedules, ensuring insurance coverage, formalising relations between production companies and guilds and overseeing collection account management. • Unprecedented RevenueWaterfall Management: Businesses and individuals will receive residuals and royalties from distribution waterfalls in near-real-time as they are collected. Payments due to investors, producers, actors, guilds, collection agents and other parties are remitted on-receipt, rather than accumulated by intermediaries until the next accounting period. • Targeted Marketing Data: As consumer transactions such as buying tickets at the box office and subscribing to digital content are executed using Moviecoin Tokens, MovieCoin will collect anonymised data regarding customer preferences to help inform companies registered to its platform. These insights will allow businesses, such as distribution companies, to replace massive “shotgun marketing” budgets with more strategic and cost-efficient campaigns. In conjunction with MovieCoin’s initial smart asset offerings, the Company is commencing a security offering this month to raise capital to fund a slate of films that will be produced on the MovieCoin platform, which will become MovieCoin Smart Assets. The Company is establishing the MovieCoin Smart Fund and intends to sell $250 million worth of Fund tokens. These tokens will finance eight to 10 widely-released theatrical films on an annual basis during the term of the Fund. The Fund intends to own all rights to the films it finances and to build a valuable content library that can be re-marketed, re-licensed and re-financed to benefit Fund Token holders. The Fund’s films will be insured and bonded to mitigate film production, completion and delivery risk.