Film Department planning to go public
Indie film company also setting up distribution systemThe Film Department, the Los Angeles-based indie-film finance and production company that Mark Gill and Neil Sacker founded in 2007, is planning to go public and set up its own distribution system.
The company, which Monday filed a Form S-1 registration with the Securities and Exchange Commission for an initial public offering, hopes to raise $85 million-$100 million by selling 7.08 million shares at $12-$14 apiece.
The Film Department plans to use the proceeds to move into distribution, releasing six to 10 films a year, including its own productions and third-party titles.
Focusing on movies in the $10 million-$45 million range, Film Department has turned out the revenge drama "Law Abiding Citizen," starring Gerard Butler and Jamie Foxx, which has grossed more than $70 million domestically since its mid-October release by Overture.
Its upcoming films include "The Rebound," starring Catherine Zeta-Jones; "Earthbound," starring Kate Hudson; and "The Beautiful and the Damned," starring Keira Knightley.
For the first nine months of the year, the company reported revenue of $13 million and a loss of $14.2 million. It has $4.3 million in cash and assets of $69.5 million along with nearly $70 million in liabilities.
IPO Solutions, a division of Girard Securities, is underwriting the offering.