Gold Tree Films LLC. a Nevada limited liability company was formed in September 2018 and as of 2022 has now opened Gold Tree Studios a subsidiary company in California that specializes in Post Production services and has equipment and stage rental. The Fund has reached an agreement with a private Delaware Bank & Trust to provide five year Medium Term Notes with a 5% annual dividend to secure equity investments in some of its projects, subject to certain restrictions and conditions contained in the agreement. The Fund was specifically designed to invest in and produce consistently low risk yet still potentially high return film investments. The film investments chosen are done so through the use of a unique finance and commercial strategy and factors that do not (unlike traditional film investment) solely rely on the ultimate commercial success of any investment. The Fund will only invest in film projects that adhere to the Fund’s strict business, legal, and creative criteria.
The Fund does provide production services to films it does not finance including assistance in development, finding alternate funding sources and packaging projects and identifying the proper sales agent for projects and actual physical production and identifying distribution options.
The Fund has an agreement with Salem Productions Inc. to provide management, business affairs, legal and production services to the Fund and an agreement with Spyridon Holdings LLC. to provide development and production services to the Fund.
Unlike traditional film investment, the Fund’s strict criterion mitigates much of the risk of investing in film. The Fund’s investment model also means that the risk is based on the more easily quantifiable assessment of need for product in the marketplace as opposed to ultimate consumer satisfaction. The Fund requires a minimum of available tax credit, rebates or grants, service company deferrals and foreign distribution licenses or estimate of foreign distribution license fees from a reputable and bankable foreign sales agent before the Fund will approve a project. The foregoing combined with the 5% annual dividend on the Medium Term Notes and the availability of the notes to pay any unrecouped portion of the investment at the end of 5 years results in a deminimus risk picture investment with the potential to take full advantage of a successful film. As a result, while commercial success at the box office is a desire, it is not necessity for the Fund and its investors, because the notes guarantee full recoupment and pay a 5% dividend, to receive at least a minimum return on investment in addition to full recoupment.
It is however anticipated that each of the film the Fund invests in will recoup its investment and earn a profit from a combination of all of the following:
• Jurisdictional tax credits and rebates
• Revenues, Minimum Guarantees and or presales for territorial rights including receipts from the distribution of the film in theatres, DVD, free and pay TV, streaming and other rights etc
• Product Placement revenue opportunities
This means the Fund is able to minimize the risk that has ordinarily been experienced in the film industry to date and take advantage of the revenues from films that perform well commercially.
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