FONU2 Inc., an Effingham County movie production firm that does business as Moon River, announced Tuesday it will buy Applebox Productions for $1 million through the use of traditional equipment loans and seller financing.
“Through the Applebox acquisition, we will have virtually all of the physical equipment needed to make motion pictures,” said Jake Shapiro, chairman of the board of FONU2.
Definitive agreements have been signed, and closing is expected to take place within six weeks, a news release said.
The seller-financing note is corporately guaranteed and personally guaranteed by Shapiro.
Shapiro said the equipment will be moved to Moon River’s property in Effingham County at Old River Road and Interstate 16.
The equipment will be used in an upcoming film to be directed by Penny Marshall and will be rented to others in the film industry.
“Since we are a Georgia-based business, any film productions in Georgia that rent from us will qualify for the 30 percent tax credit on our film equipment rentals to them,” Shapiro said. “We expect this to be an immediate cash flow generator for the company, and view this acquisition as a major milestone not only for us, but our shareholders as well.”
ABOUT FONU2
FONU2 Inc. (OTCPink: FONU) is a film studio, production and social commerce company developing a 1,600-acre film studio in Effingham County. Its Website is www.Fonu2.com.