In an attempt to keep its doors open, Platinum Studios, the shingle behind “Cowboys & Aliens,” has enlisted investment manager Dutchess Capital to help raise $10 million in equity through the sale of shares in the comicbook publisher — though as of Tuesday, its stock was no longer worth anything.
Platinum wants the funds to grow its library and develop titles as films, TV shows and other entertainment properties. Through the 36-month agreement, it has the option to sell common stock to Dutchess issued under an equity line of financing at share prices to be determined by the two companies. Platinum will control the timing and amount of any sales of shares sold.
On Oct. 24, Platinum amended its articles of incorporation to offer up 2.5 billion shares. The company’s stock was no longer worth anything Tuesday after losing nearly 86% of its value over the past year.
Timing of the new push for equity comes as Platinum lost $7.5 million over the first six months of the year and company filings raised “substantial doubt about the company’s ability to continue as a going concern.”
Dutchess managing director Douglas Leighton said the company still believed in Platinum’s efforts to grow the company, including a relaunch of several Platinum books, as well as putting more marketing coin behind the titles as they’re released across various digital platforms. It generates much of its coin from licensing and first-look deals for adaptations.
Platinum owns a library of more than 5,000 comicbook characters. Although the “Cowboys & Aliens” film was produced by Universal, Paramount, DreamWorks and Imagine Entertainment, Platinum retained the rights to publish new comicbooks, produce games and mobile apps, sell toys and set up licensing deals around the property. Film quietly crossed the $100 million mark in the U.S.
The company is currently prepping to relaunch “Atlantis Rising” as a comicbook series. Platinum now has the film rights to the project back after DreamWorks was developing a bigscreen version of the sci-fier with Roberto Orci and Alex Kurtzman and Len Wiseman once attached to direct.
The new “Atlantis Rising,” a pet project Platinum CEO Scott Mitchell Rosenberg, would focus on characters and storylines that would translate better as a film.
Other projects Platinum is developing around Hollywood include “Unique,” at Disney with “Harry Potter” producer David Heyman; “Vice,” with producer Andrew Lazar and Top Cow Prods; “Blood Nation,” with producer Alexandra Milchan; and, “Nightfall,” with William Stuart, exec producer of “The Rock.”
Platinum is also developing “MetaDocs” for TV with Syfy, FremantleMedia and Landscape Entertainment, and “Gray Legion,” with Robert W. Cort. Rosenberg produced “Cowboys & Aliens” with Steven Spielberg, Brian Grazer, Ron Howard, Kurtzman and Orci.