FONU2, Inc., announced Tuesday it has signed definitive agreements to acquire Applebox Productions.

The acquisition is structured as an asset purchase, consisting of items such as lights, cameras, grip equipment, electrics and production vehicles. The purchase price of $1 million is being financed by a combination of traditional equipment loans and seller financing.  The seller-financing note is both corporately guaranteed and personally guaranteed by Jake Shapiro, chairman of the board of FONU2.

Closing is expected to take place within the next six weeks.

“Through the Applebox acquisition, we will have virtually all of the physical equipment needed to make motion pictures,” Shapiro said. “We will be moving this equipment to our property in Effingham County, the site of our future facility. Not only will this equipment be utilized in the upcoming film to be directed by Penny Marshall, we will also be renting the equipment out to help service the Georgia film industry.

“Since we are a Georgia-based business, any film productions in Georgia that rent from us will qualify for the 30-percent tax credit on our film equipment rentals to them. We expect this to be an immediate cash flow generator for the company, and view this acquisition as a major milestone not only for us, but our shareholders as well. This acquisition will also help to provide a serious level of film infrastructure for coastal Georgia.”