You Never Know When Your Number’s Up!
Seeking Accredited Film Investors
This is not an offering: the actual offering is a Private Placement Memorandum (PPM), compliant under SEC Regulation D Rule 506c (dated Sept 1, 2016). PPM’s are available on request, individually numbered and tracked. The offering is only for verifiable accredited investors as defined by the SEC (Click here for more ). The budget for the film is $3.5 mil (US); 140 investor units available, valued at $25,000 ea. CLICK HERE for a simple one-sheet outline of the project. Large investors may qualify for a Section 181 deduction.
No one can predict the success of any given film, but films in general are not the bad investment many think. A NY Times article “Hollywood Seems a Conservative Investment” talks about how film is not considered high risk. With all the ways to sell a film and reach an audience – not just in theaters, but DVD/BluRay, VOD, Netflix, Hulu, Amazon, iTunes – filmmakers can create earnings long-term.
MegaBall$ offers many strong points for film investors. It’s a high-concept comedy with an expected MPAA rating of PG-13 and strong commercial appeal. Geeks are popular – several hit shows on TV are about geeks, including Big Bang Theory, Scorpion and Silcon Valley. The Mob genre has been popular for over 70 years. Look at the success of The Godfather and The Sopranos. MegaBall$ combines both genres along with the fascination of the lottery. The revenue projections are positive…and the investment may be tax deductible.
The investment level for accredited investors is surprisingly low, $25,000 per unit (1 unit minimum). If you are interested in learning more about investment opportunities with MegaBall$, please contact us for all of the details. We can send a project overview outlining the goals of the film along with related documents prior to sending the offering. Related documents include the overview, offering (PPM), MegaBalls LLC Operating Agreement, Budget (face sheet or full detail) and the Subscription Documents, revenue projections, and the shooting schedule. Persons wishing more information are welcome to have their lawyer or accountant contact our legal representative directly.
Investment into MegaBall$ is also qualified for the federal tax incentive known as Section 181. Whereas investment into this film may be deductible to the investor against passive income once spending begins (capitalization of the offering), then claimed as income in the year sales of the film are recieved. For example, lotto winnings are passive income and investment in this film could defer the taxes due to lottery winnings. An investment made into MegaBall$ in 2017 would be deducted against passive income, then reported as income in 2018 (assuming that is when sales begin). One also must consider that sales occur over several years adding a long-term benefit. Large level investors would be “Active” to qualify for the 181 deduction.
We have qualified to be ‘grandfathered’ in to the incentive, which expires December 31, 2016. There is a bill in Congress to renew 181, but it may take many months to approve, if at all. However investments into MegaBall$ still qualify for the tax incentive benefit event after the incentive expires.
For full details potential investors should check with their tax advisor. If not, our lawyer – who was a part of the Section 181 formation – can best explain and provide documentation about the tax benefit.
Contact us for investor information:
An independent comedy feature film by Oroloro Entertainment