Spackman Entertainment Group Acquires Korean Film Production Company, Simplex

• Simplex is an early stage
  film production firm headed by veteran Korean producer, Ms. Lim Ji-young
• Simplex’s first film, JESTERS: THE GAME CHANGERS, a historical
  comedy film starring Cho Jin-woong of THE SPY GONE NORTH
  (2018) and Son Hyun-joo of ORDINARY PERSON (2017), is expected to be released in August 2019 in Korea
• Acquisition of Simplex enables the Group to expand
  its film production capacity annually and strengthen the performance of its
  film production business

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SINGAPORE
- Media OutReach - 15 July 2019 - Spackman
Entertainment Group Limited (“Spackman Entertainment Group” or the “Company”
and together with its subsidiaries, the “Group“), one of Korea’s leading
entertainment production groups founded by media investor Charles Spackman,
wishes to announce that the Company has entered into a sale and purchase
agreement with four independent third parties to acquire the entire issued and
paid-up share capital of Simplex Films Limited (the “Target Company” or “Simplex“)
(the “Proposed Acquisition“).

 

The Target Company, a company incorporated in Hong
Kong, owns 100% equity interest in Simplex Films Co., Ltd.  which is founded on 9 May 2014 in the
Republic of Korea. Simplex is an early stage film production firm headed by
veteran Korean producer, Lim Ji-young.   She has achieved the following accolades,
namely, 2014 PGK (Producer Guild of Korea) Vice President, 2014 Winner for Best
Female Producer of the 15th Annual Woman’s Film Awards, 2012 Grand Prize for
Best Story for DEMI
HUMAN from the
Korean Creative Contents Agency and 2012 Grand Prize for Best Story for DEMI HUMAN from the
Ministry of Culture, Sports and Tourism.

 

Simplex intends to produce top quality films to be
theatrically released and distributed in Korea and overseas. Simplex shall
first release its films initially in Korea and subsequently in post-theatrical
markets such as cable television, broadcast television, IPTV, video-on-demand,
and home video/DVD, etc.

 

Simplex’s upcoming film, JESTERS: THE GAME
CHANGERS, a historical comedy film starring Cho Jin-woong of INTIMATE STRANGERS (2018) and THE SPY GONE
NORTH (2018) and Son Hyun-joo of ORDINARY
PERSON (2017), is expected to be released in August 2019 in Korea. The
film, which is currently in the post-production stage, is distributed by Warner
Bros. Korea and directed by Kim Joo-ho. Kim Joo-ho was
nominated for the Best New Director at the 49^th DAEJONG Film Awards
and the 33^rd Blue Dragon Film Awards. Notably, he won the Orient
Express Award at the 33^rd Fantasporto – Oporto International Film
Festival.

 

John
Ko, Chief Executive Officer of Spackman Entertainment Group said, “Through the
acquisition of Simplex, the Group shall be able to expand its film production capacity
and look forward to positive contribution from Simplex’s maiden film within
this fiscal year.” 

 

JESTERS: THE
GAME CHANGERS relates the story of a
‘gang of clowns’ that manipulates rumors throughout the country and stirs the
public. The ‘gang of clowns’ is discovered by Han Myung-hoe (played by Son
Hyun-joo), the most powerful man in Joseon, and creates legendary stories about
King Sejo (played by Park Hee-soon).

 

Simplex also has the following tentative pipeline
of films, namely, A BOLT FROM THE BLUE, IRREVOCABLE PROMISE, OUR SUPERSTAR
K, HAPPY MURDER, GIRL CRUSH and TEMPTATION. Directed by Kim Ji-mok,
A BOLT FROM THE BLUE is a remake of a 2014 Japanese comedy drama and scheduled
to start production in 2019.

 

The
total purchase consideration for the Proposed Acquisition shall be 165,000,000
newly issued
ordinary shares of the Company at S$0.02 per share, which was arrived at
following arm’s length negotiations on a willing buyer, willing seller basis, as
well as reviewing the average of the Group’s past one month’s volume weighted
average price of approximately S$0.018, and taking into account, inter alia, the
Target Company’s unaudited net profit before tax of KRW72,288,446
(approximately S$83,743)[1] for the
period from 1 January 2019 to 31 May 2019.

 

The Group believes that the Proposed Acquisition
can enable the Group to be better positioned to invest into Simplex’s pipeline
of -quality films in terms of script and casting in order to seek higher
returns as both a film producer and an investor.

 

The Proposed Acquisition is in line with the
Group’s strategy of aggressively looking out for acquisitions that can add
accretive value to the Group’s existing film production business. The Group
views that Simplex is equipped with the capability to produce top quality films
based on Ms. Lim Ji-young’s track record and experience in film production. The
Proposed Acquisition also allows the sharing of networks and resources to bring
about higher business synergy and efficiency in the Group’s film production
business segment.

About Spackman Entertainment Group Limited

Spackman
Entertainment Group Limited (“SEGL”
or the “Company“), and together with
its subsidiaries, (the “Group“), one
of Korea’s leading entertainment production groups founded by investment
veteran, Mr. Charles Spackman, is primarily engaged in the independent
development, production, presentation, and financing of theatrical motion
pictures in Korea. In order to diversify our revenue streams, we have expanded
our business portfolio to include the production of Korean television dramas.
In addition to our content business, we also make investments into
entertainment companies and film funds that can financially and strategically
complement our existing core operations. SEGL is listed on the Catalist of the
Singapore Exchange Securities Trading Limited under the ticker 40E.

 

SEGL’s
Zip Cinema Co., Ltd. (“Zip Cinema“)
is one of the most recognised film production labels in Korea and has
originated and produced some of Korea’s most commercially successful theatrical
films, consecutively producing 9 profitable movies since 2009 representing an
industry leading track record. Recent theatrical releases of Zip Cinema’s
motion pictures include some of Korea’s highest grossing and award-winning
films such as DEFAULT (2018), MASTER (2016), THE PRIESTS (2015), COLD EYES
(2013), and ALL ABOUT MY WIFE (2012).
For more information on Zip Cinema, do visit http://zipcine.com  

 

SEGL
also owns Novus Mediacorp Co., Ltd. (“Novus
Mediacorp“), an investor, presenter, and/or post-theatrical distributor for
a total of 79 films (58 Korean and 21 foreign) including ROSE OF BETRAYAL, THE OUTLAWS
and SECRETLY, GREATLY, which was one
of the biggest box office hits of 2013 starring Kim Soo-hyun of MY LOVE FROM THE STARS fame, as well as FRIEND 2: THE GREAT LEGACY. In 2012,
Novus Mediacorp was also the post-theatrical rights distributor of ALL ABOUT MY WIFE, a top-grossing
romantic comedy produced by Zip Cinema. In 2018, THE OUTLAWS, co-presented by Novus Mediacorp broke the all-time
highest Video On Demand (“VOD“)
sales records in Korea. Novus Mediacorp is currently in the process of seeking
a listing on the Singapore Stock Exchange. For more information on Novus
Mediacorp, do visit  http://novusmediacorp.com 

 

Our
films are theatrically distributed and released in Korea and overseas markets,
as well as for subsequent post-theatrical worldwide release in other forms of
media, including cable TV, broadcast TV, IPTV, video-on-demand, and home
video/DVD, etc. We release all of our motion pictures into wide-theatrical
exhibition initially in Korea, and then in overseas and ancillary markets.

 

We
also operate a café-lounge called Upper West, in the Gangnam district of Seoul
and own a professional photography studio, noon pictures Co., Ltd..

 

The
Company holds an effective shareholding interest of 43.88% in Spackman Media
Group Limited (“SMGL“). SMGL, a
company incorporated in Hong Kong, together with its subsidiaries, is
collectively one of the largest entertainment talent agencies in Korea in terms
of the number of artists under management, including some of the top names in
the Korean entertainment industry. SMGL operates its talent management business
through renowned agencies such as MS Team Entertainment Co., Ltd., UAA & Co
Inc., Fiftyone K Inc., SBD Entertainment Inc., and Kook Entertainment Co., Ltd.
Through these full-service talent agencies in Korea, SMGL represents and guides
the professional careers of a leading roster of award-winning actors/actresses
in the practice areas of motion pictures, television, commercial endorsements,
and branded entertainment. SMGL leverages its unparalleled portfolio of artists
as a platform to develop, produce, finance and own the highest quality of
entertainment content projects, including theatrical motion pictures, variety
shows, and TV dramas. This platform also creates and derives opportunities for
SMGL to make strategic investments in development stage businesses that can
collaborate with SMGL artists. SMGL is an associated company of the Company.

 

The Group owns a 100% equity interest in
Frame Pictures Co., Ltd. (“Frame Pictures“). Frame Pictures is a
leader in the movie/drama equipment leasing business in Korea. Established in
2014, Frame Pictures has worked with over 25 top directors and provided the
camera and lighting equipment for some of Korea’s most notable drama and movie
projects including the upcoming Korean film GIRL COPS (2018) featuring rising star
Wi Ha-jun of SMGL and THE GREATEST
DIVORCE (2018) starring Bae Doona of SMGL. In 2018, Frame Pictures has also won contracts to supply
equipment to FOUR MEN (2019), ASADAL CHRONICLES (2019), THE CROWNED CLOWN (2019), THE BEAUTY INSIDE (2018), HUNDRED MILLION STARS FROM THE SKY (2018), LOVELY HORRIBLY (2018), THE
GUEST (2018), historical Korean movie MALMOI, SUITS (2018) featuring
Park Hyung-sik of SMGL, MISTRESS (2018), LIFE (2018), LIVE (2018) starring Lee Kwang-soo of RUNNING MAN, MY MISTER (2018) and Netflix’s first Korean original production LOVE ALARM (2018). Frame Pictures and
Novus Mediacorp are currently seeking to list on the Singapore Stock Exchange.

 

The Company owns a 100% equity interest
in Take Pictures Pte. Ltd.
(“Take Pictures“) which has a strong
lineup of 10 film projects including STONE
SKIPPING and the co-production with Zip Cinema for THE PRIESTS 2.

 

The Company owns a 100% equity interest
in Constellation Agency Pte. Ltd. (“Constellation
Agency“). Constellation Agency, which owns The P Factory Co., Ltd. (“The P Factory“) and Platform Media
Group Co., Ltd. (“PMG“), is
primarily involved in the business of overseas agency for Korean artists
venturing into the overseas market. The P Factory is an innovative marketing
solutions provider specializing in event and branded content production. PMG is
a talent management agency which represents and manages the careers of major
artists in film, television, commercial endorsements, and branded
entertainment.

 

The Company owns a 100% equity interest in Greenlight Content
Limited which is mainly involved
in the business of investing into dramas and movies, as well as providing
consulting services for the production of Korean content.

 

On 7 May 2018, the Company announced that
it would spin-off Novus Mediacorp and Frame Pictures into a combined entity to
seek listing on the Catalist Board of the Singapore Exchange Securities Trading
Limited to exploit the growing post-theatrical and camera equipment leasing
markets.

 

For
more details, do visit http://www.spackmanentertainmentgroup.com/