FILM ROMAN DEAL SINKING BUYER FINDS CASH SHORT.Byline: Jesse Hiestand Staff Writer NORTH HOLLYWOOD - ``Simpsons'' animators Famous animators no longer living
Pentamedia Graphics Pentamedia Graphics Limited is a graphics, multimedia solution and animation company in India. The company is engaged in enterprise as well as open source multimedia solution. Ltd. agreed in January to pay $15 million for 60 percent of newly issued common stock of Film Roman. Pentamedia tried to amend the deal when its shares lost value on the Luxembourg Exchange, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. executives at Film Roman. A final offer to pay entirely with Pentamedia stock was rejected by Film Roman's board. ``It didn't make sense for us to do a deal where we didn't have a guaranteed value on the shares,'' said Film Roman President and Chief Executive John Hyde John Hyde may refer to:
Pentamedia representatives could not be reached for comment. In a filing with the Securities and Exchange Commission on Monday, Film Roman formally notified Pentamedia that it was in material breach of the stock purchase agreement signed Jan. 31. At Pentamedia's request, the payment date was extended from March 26 to April 13. By that time, Pentamedia had moved on several occasions to change terms of the deal after the company's stock dropped and the cancellation of a $35 million offering of Global Depository Receipts Global Depository Receipt A receipt denoting ownership of foreign-based corporation stock shares which are traded in numerous capital markets around the world. . Trading a stake in Film Roman for stock of uncertain value made no sense, Hyde said, especially since Film Roman has had two strong quarters since going public, had no debt and $3 million in cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. . Under terms of the agreement, Pentamedia has 15 days to remedy the breach of contract before it can be terminated and arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the undertaken. Pentamedia suggested the deal last year and Film Roman agreed because it offered more control over animation projects outsourced to overseas companies, Hyde said. Pentamedia had also developed some innovative software. Several of Film Roman's more popular projects, including ``The Simpsons'' and ``King of the Hill,'' are designed and rendered by its 400- person staff in North Hollywood. |
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