U.S. Patented, SEC-Compliant
Funding Through Crowdfunding
MediaShares
Companies Need Capital to Start or Grow
Problem: Current Funding Environment
•All Funding is hard to find now
•Banks loans are extremely difficult to obtain
•Many VC’s Not Funding
•Angels are very conservative (or Broke) now
MediaShares
New Funding Source: Crowdfunding
Current Examples:
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Sellaband.com, record albums
Kickstarter.com, creative projects
IndieGoGo.com, movies
RacingShares.co.uk, Racehorses
JustinWilsonplc.com, Formula One Team
MyFootballClub.co.uk, Sports team
Barack Obama, Presidential Campaign ($600 million?)
AgeofStupid.net, TV Show (Not! – raised over 800,000 pounds)
Trampoline Systems, U.K. Technology firm! (instead of VC)
Crowdfunding Works!
Crowdfunding Successes:
Trampoline Systems: London-based social analytics system raised 500,000
pounds (instead of VC funding)
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Barack Obama, Presidential Campaign ($600 million?)
AgeofStupid.net: TV Show (Not Stupid! – raised over
800,000 pounds)
Crowdfunding Works!
Crowdfunding Works!
MediaShares
Current Crowdfunding examples:
• Majority are outside the U.S. (different Regulations)
• U.S. Crowdfunding is mostly through Donations
• “Investments” highly regulated by SEC
MediaShares
A New Method Of Public Financing
MediaShares - A Financial Services Company Offering:
• An SEC-compliant Method of Crowdfunding
• Two Types of Online Offerings:
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NASDAQ Capital Market IPO
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Registered Direct Offerings (Similar to a PIPE)
• Companies sell stock Directly to the Public on their own Web sites
MediaShares
A New Method Of Public Financing
MediaShares.com Business Method:
• Method for selling as little as One Share of NASDAQ Stock online
• Shareholders get company’s product as a dividend (free DVD?)
• Shareholders receive their share of a Company’s net earnings
paid out as cash dividends
• MediaShares has an issued U.S. Patent (6,792,411)
MediaShares
The New MediaShares IPO:
•Fully SEC-Compliant with all Regulations (Fed. & State)
•Either NASDAQ Capital Market or OTCBB
•Underwriter is optional
•IPO Posted on the Company’s Web site
•Stock sold to Company’s Affinity Group: Fans, Customers, or
through Social Marketing
•Shareholders join a massive online community
MediaShares
MediaShares Registered Direct Offerings:
•S-3 Filing (public company for 2 years)
•Similar to a PIPE investment, but sold to General Public
•Stock sold on the Company’s Own Web site to Fans or Customers
•Stock is immediately tradable and liquid
•Used Very Successfully for Loyalty programs
•Shareholders join a massive online community
Example:
Buy Home Depot Stock on Home Depot’s Web site
MediaShares
MediaShares stock is sold through Direct Registration:
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Stock sale completed online
Book entry
No paper certificates
Electronic disclosure documents
All communication through email
Millions of shareholders managed in a server
MediaShares
Competition
Other companies selling their shares online:
*Can’t sell to the general public
*Accredited investors only
MediaShares
MediaShares Partners:
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BNY Mellon – Direct Registration Supplier
ComputerShare – Direct Registration Supplier
Ellen Phillip & Associates – Data Management
David Wagner & Associates – Securities Attorney
MediaShares
A New Method Of Public Financing
Can fund ANY BUSINESS with
a large group of customers or
fans online
Works great for funding
entertainment companies
Tremendous possibilities for
building a hyperactive
Internet community
MediaShares Licenses its U.S.
Patented Business Method:
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Movies
NASCAR Teams
Major Sports Teams
Video Games
Broadway Shows
Record Albums
Celebrities with Pet Projects
Thoroughbred Racehorses
Any Company with many Fans or
Customers
MediaShares.com
Revenues From Licensee Companies
CinemaShares.com
First Licensee Companies
CinemaShares.com
Licensee Companies Owned by Parent
“David Livingstone - The Truth Behind The Legend”
- A film about the greatest Christian Missionary that ever lived
CinemaShares.com owns all rights to this award-winning book and
will finance this Christian-themed Film
The Gene Woods / Circle K
NASCAR Racing Team
CinemaShares.com
Online Partners
RacingShares.com
Examples of First Licensee Companies
“Gene Woods Racing”
• A RacingShares.com Licensee Company
• Qualified as a NASCAR “Busch Series” Team
•Gene Woods has numerous past wins
• Letter of Intent from Jennifer Jo Cobb - NASCAR Busch Series
•Online Contest for 3rd Driver
• Affiliated with Circle K Stores
RacingShares.com
Business Method
• Finance NASCAR Racing Teams
– Tremendous fan base for Formula One & NASCAR racing
– Fans collected from Internet Web sites and product
promotional tie-ins
• Fans buy one share of stock in their favorite team
• Shareholders (racing fans) receive many additional benefits:
– Streaming video access to pits
– Contests for pits tickets and a day with the driver, etc
– A free DVD of the season highlights as a stock dividend
• Stock also sold to Advertisers and Corporate Sponsors
• Shareholders receive their portion of the team’s winnings paid
out as cash dividends
RacingShares.com
Online Marketing
The MediaShares Team
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Gene Massey: Founder, Chairman, & CEO
– SEO Marketing & Securities Specialist
– CEO of Los Angeles film production company
Jim Volpe, Chief Operating Officer
– Invented the Direct Registration System
– Expertise in DRS, book entry and stock transfers
Peter Elwell, Chief Financial Officer
– Former CFO of Primedia Division
– Worked for Disney & KPMG
– Extensive experience with SEC Reporting Requirements
Ileana Rizescu, Chief Technology Officer
– Former PWC Consultant
– Designed E-commerce systems for Pepperdine
Dan Sherkow: Board Member
– Former Vice President of Paramount Pictures
– FINRA Series 7 and funding expert
MediaShares
Earnings From Licensee Companies
MediaShares earns CASH FEES and CASH DIVIDENDS from
each Licensee Company. These earnings include:
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$500,000 CASH FEE for License from each new company
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Service fees as exclusive supplier of Internet services (hosting,
bandwidth, etc.)
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Cash earnings as exclusive supplier of online merchandise
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MediaShares owns stock in each Licensee Company:
– Owns 7% of the stock in a Licensee Company and
receives 7% of all earnings paid out as CASH DIVIDENDS
– Owns 50% of the stock in a Licensee Companies and
receives 50% of all earnings paid out as CASH DIVIDENDS
MediaShares
Earnings From One Licensee Company
Earnings from 1st MediaShares IPO, The Livingstone Film Company:
MediaShares owns 50% of the stock in Livingstone and receives 50% of all
earnings paid out as CASH DIVIDENDS:
MediaShares
Earnings From One Licensee Company
Earnings example, 50% Ownership, MediaShares Licensee Company IPO,
The Livingstone Film Company:
MediaShares owns 50% of the stock in Livingstone and receives 50% of all
earnings paid out as CASH DIVIDENDS.
Livingstone Company Projected Earnings (not including merchandise sales):
Conservative…….. $ 1,229,464.
Moderate…………. $ 59,192,463.
Aggressive………. $110,146,128.
Using the Moderate Scenario above, MediaShares earnings @ 50%:
$29,596,231.
MediaShares
Earnings From One Licensee Company
Earnings example, 7% Ownership, MediaShares Licensee Company IPO,
The Livingstone Film Company:
MediaShares owns 7% of the stock in Livingstone and receives 7% of all
earnings paid out as CASH DIVIDENDS.
Livingstone Company Projected Earnings (not including merchandise sales):
Conservative…….. $ 1,229,464.
Moderate…………. $ 59,192,463.
Aggressive………. $110,146,128.
Using the Moderate Scenario above, MediaShares earnings @ 7%:
$ 4,143,472.
RacingShares.com
Typical Online Sales Example
NASCAR Merchandise Online Sales
Typical Earnings FROM EACH NASCAR Team
Earnings below are based on 50% of MSRP:
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2,000 Hats per month
• 10,000 T-shirts per month
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5,000 Model cars
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5,000 Other items
@ 9 ea = $ 18,000 per month
@ 12 ea= $120,000 per month
@ 4 ea= $ 20,000 per month
@ 5 ea= $ 25,000 per month
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Typical Online Sales per 30 days = $183 ,000 per month
MediaShares
Solid
Earnings Potential
MediaShares.com 1st Year Financial Summary (projected):
Revenues…………………………….………. $ 4,130,000
Expenses…………………………………….. $3,803,992
Net Income……………………………..…… $ 326,008
MediaShares.com 5th Year Financial Summary (projected):
Revenues…………………………….……….$132,954,000
Expenses…………………….……………….$ 11,911,085
Net Income…………………………….…….$121,042,915
Projected Revenue Source: MediaShares.com 3mm Budget, 4/10
MediaShares
MediaShares Additional Funding Opportunity:
• Available Equity in MediaShares: 81%
• Invested to Date: $2,307,100 ($1,900,000 personally from CEO)
• Minimum of $500k required to Complete Our First Online IPO
• Maximum of $3MM to implement the Complete Business Plan
• Profitability in Year 2
MediaShares
Investor’s Equity and Earnings
Funding From New Equity Investor…………….. $3,000,000.
30% equity purchased for $3.0 MM, investors projected return:
• 1st year pre-tax earnings of $ 326,008 x 30% = $97,802.
• 3rd year pre-tax earnings of $60,959,114 x 30% = $18,287,734.
• 5th year pre-tax earnings of $ 121,042,915 x 30% = $ 36,312,873.
Investors exit in 5 years from MediaShares.com as a public
company:
Projected PE of 30: $121mm x 30 x 30% = $ 1,089 MM.
Projected Revenue Source: New MediaShares.com $10mm Budget, 5/06.
MediaShares
Irvine: The New Crowdfunding Capital of The World
U.S. Patented, SEC-Compliant,
Crowdfunding for Public Financing
Contact: Gene Massey
Email: gene@cinemashares.com
Phone: (310) 476-3668