The reorganization of Moon River Studios is now complete, CEO Jake Shapiro said Tuesday afternoon, as its lease on its Effingham County property has been acquired by a new investor.
Fonu2, Inc., announced it has obtained the lease on 1,560 acres in southern Effingham County where Moon River is planning on building a massive movie production facility. Fonu2 will assume the obligations on the payments to the Effingham Industrial Development Authority.
As part of the deal, Moon River shareholders will be issued 10 million shares of Fonu2 stock. The purchase price included $10 million, and Fonu2 has assumed the $10 million note secured by the property.
“All the obligations as far as capital investment and job creation remain in place,” Shapiro said. “This is one of the final steps for the restructuring of Medient, to enable the company to create value for shareholders and to go ahead and get the studio built. We’re confident we’ll hit all the milestones in the development plan submitted earlier this year.”
Said Roger Miguel, Fonu2 CEO: “This is a major event for Fonu2 and its shareholders. The Moon River film studio has the potential to be a major game-changer for the motion picture industry. Georgia is number one in growth for the movie industry, with a major shortage of available sound stages due to the massive demand in the state. This is clearly one of the largest studio projects in the country. We will be focused specifically on the execution of the construction of the stages and the support facilities.”
Shapiro said the company is ordering additional engineering to be completed this quarter and expects heavy construction activity to commence in late March or early April.
“Now it’s very much a go,” Shapiro said. “It’s very exciting to finally be here. It’s very exciting for us.”
Medient shareholders will continue to hold their stock and will have 10 million Fonu2 shares dispensed as a dividend. Federal regulators approved a reverse split of Fonu2 stock last week, Shapiro said. That was one of the last dominoes, he added, in order for the studio to access additional resources.
Shapiro added the studio’s construction “dream team” of Foley Design Associates, Choate and Hussey, Gay , Bell and DeYoung remains in place.