Wonderfilm Announces Corporate Update and Reinstatement of Trading
Vancouver, British Columbia--(Newsfile Corp. - March 24, 2020) - The Wonderfilm Media Corporation (TSXV: WNDR) (OTCQB: WDRFF) ("Wonderfilm" or the "Company") is pleased to announce that the board of directors of the Company (the "Board") has appointed Stephen Brown as the President, Chief Executive Officer and as a Director of the Company and Mark Groenewald as the Chief Financial Officer of the Company, effective immediately. In addition, the common shares in the capital of the Company (the "Common Shares") will be reinstated to trading on the TSX Venture Exchange (the "Exchange") on March 26, 2020.
Change of Management and Director Appointment
Stephen Brown has been appointed to serve as the President and Chief Executive Officer of the Company and Mark Groenewald has been appointed to serve as the Chief Financial Officer of the Company. In addition to his appointment as President and Chief Executive Officer of Wonderfilm, the Board has appointed Mr. Brown as a Director of the Company to fill the vacancy created upon the resignation of Norman Tsui on March 9, 2020.
Mr. Brown is a successful entrepreneur focused on the production of independent film, music and television series. Mr. Brown previously served as the President and Chief Executive Officer of Entertainment Boulevard, Inc. and was among the very first entrepreneurs to envision the Internet's emerging position as the dominant film and music distribution platform. Vidnet, Stephen's groundbreaking streaming video service, quickly emerged as one of the top entertainment sites on the web. Providing streamed video content to companies such as Microsoft, Disney, Lycos, Alta Vista, Stephen forged key alliances with entertainment giants, Sony, Warner Bros and EMI Capital. Soon after going public, Entertainment Boulevard Inc., Vidnet's parent, reached a market cap of over $500M on NASDAQ.
Mr. Groenewald is an experienced financial officer and holds a Bachelor of Accounting Science Degree from the University of South Africa. Mr. Groenewald currently serves as the Chief Financial Officer of International Zeolite Corp. and has held a number of executive positions with both private and public companies.
Kirk Shaw, Director of the Company commented "We're thrilled to have two individuals with Mr. Brown and Mr. Groenewald's knowledge and experience step into the role of President and Chief Executive Officer and Chief Financial Officer to help guide the Company going forward. Mr. Brown's familiarity with all aspects of the entertainment industry, including film, television, music, e-sports and streaming and breadth of experience combined with Mr. Groenewald's financial expertise significantly strengthen the management team and its leadership at this critical time for the Company."
To make room for the appointment of Mr. Brown, the Board has accepted the resignation of Kirk Shaw as the President and Chief Executive Officer of the Company effective immediately. Mr. Shaw will remain as a Director of Wonderfilm and will continue to provide his invaluable experience to the Company. The Company thanks Mr. Shaw for his significant contributions and service in founding and leading Wonderfilm since its inception and looks forward to his continued guidance and support as a key member of the Board.
Change of the Company's Name
The Board has approved the change of the Company's name from "The Wonderfilm Media Corporation" to "Appreciated Media Holdings Inc." Subject to the receipt of Exchange approval, it is anticipated that the name change will become effective on or about April 6, 2020.
Resumption of Trading
The Company has completed all of the required submissions to the Exchange for the reinstatement of trading of the Common Shares on the Exchange. The Exchange has confirmed that the reinstatement will be effective as of March 26, 2020.
Grant of Stock Options and Executive Compensation
The Board has authorized and approved the grant of 200,000 incentive stock options (the "Stock Options") to each of Mr. Brown and Mr. Groenewald under its incentive stock option plan. Each Stock Option will entitle the holder thereof to acquire one (1) Common Share at an exercise price of $0.13 per share, vest in annual one-quarter (1/4) increments commencing on the first anniversary of the date of grant and have an expiry date of March 24, 2025. In addition, the Board has approved an annual salary for Mr. Brown of $120,000 and a monthly salary of $2,500 for Mr. Groenewald.
Shares for Debt
Subject to the approval of the Exchange, the Company has entered into an agreement pursuant to which the Company will settle $45,403.22 of accrued and unpaid interest owing to certain holders of unsecured 8% convertible debentures of the Company (the "Debentures") into Common Shares at a price of $0.13 per Common Share. As a result of the settlement, the Company will issue an aggregate of 349,256 Common Shares to the holders of the Debentures.
Further, subject to Exchange approval, the Company has entered into agreements with certain arm's length parties to settle an aggregate of $13,942.98 owed by the Company for past services in exchange for Common Shares at a price of $0.13 per Common Share. As a result of such settlement, the Company will issue an aggregate of 107,254 Common Shares to such persons.
In addition, Mr. Shaw and Mr. Norman Tsui, former Interim Chief Financial Officer and Director of Wonderfilm, have entered into an agreements with the Company pursuant to which they have agreed, subject to Exchange approval, to settle $152,000 owing to them for past services for Common Shares at a price of $0.13 per Common Share. As a result of the settlement, the Company will issue an aggregate of 1,169,230 Common Shares to Kirk Shaw and Norman Tsui.
Asset-Backed Debt Facility
In its press release issued on October 22, 2019, the Company announced that it was co-marketing a third-party, USD$50 million (C$65.9 million) asset-backed debt facility designed to escalate the pace of the Company's revenue and increase overall production efficiency. At present, the Company's co-marketing efforts are ongoing. For more information regarding the proposed facility, please see the Company's press release dated October 22, 2019 which is available under the Company's profile on SEDAR at www.sedar.com.
PCG Advisory, Inc.
The Company's engagement of PCG Advisory, Inc., which was appointed as advisor for investor relations and strategic communications services on October 3, 2019, ended in November 2019.
The Movie Studio Inc. Strategic Partnership and Joint Venture
The strategic partnership and joint venture between The Movie Studio Inc. and the Company that was announced by The Movie Studio Inc. in a press release dated April 1, 2019 was terminated in December 2019.
About The Wonderfilm Media Corporation
Wonderfilm (TSXV: WNDR) (OTCQB: WDRFF) is a leading entertainment company with production offices in Los Angeles and corporate offices in Vancouver. The Company's core business is producing market-driven independent feature films and quality television series for multi-platform global exploitation. Wonderfilm is a producer and distributor only for the projects disclosed.
For more information, visit the Company's website at www.Wonderfilm.com.
Neither the TSX Venture Exchange Inc. ("Exchange") nor its regulation services provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release contains forward-looking information and forward-looking statements (collectively, "forward-looking statements") as such terms are defined by applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate," "believe," "plan," "estimate," "expect," and "intend," statements that an action or event "may," "might," "could," "should," or "will" be taken or occur, or other similar expressions. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond Wonderfilm's control and Wonderfilm's actual results could well differ materially from those stated or implied in forward-looking statements due to many various factors. Although Wonderfilm believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur. The timing of events and circumstances and actual results could differ materially from those projected in the forward-looking statements. Accordingly, one should not place undue reliance on forward-looking statements. All forward-looking statements contained in this press release are made as of todays date and Wonderfilm undertakes no obligation to update or publicly revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further details, please see the Company's documents filed under the Company's profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com.
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