Legend Films closes on $5 mil stock offering

Will invest in 3-D conversion technology

Legend Films, a San Diego-based entertainment and digital media company, has closed on a $5 million stock offering and will use the money to invest in its new 3-D conversion technology, its home entertainment and Web 2.0 businesses.

The lead investor in the stock purchase was Augustus Ventures, with participation by Legend's largest shareholder, Boston equity fund Par Investment Partners.

Legend has partnered with digital imaging firm Passmorelab to develop technology and processes for converting standard 2-D film and video into stereoscopic 3-D, both in theaters and in homes. Legend Films founder Barry Sandrew said the conversion process is an "outgrowth" of the company's restoration and colorization of classic films and video. Most recently, Legend produced Paramount's 2007 color release of "It's a Wonderful Life," with "Holiday Inn" coming Oct. 14 from Universal.

Legend also recently acquired the exclusive DVD distribution rights to 38 feature films never before available on DVD, which it will self-distribute to retail, largely through such key accounts as Best Buy, Target and Amazon.

Legend also has launched an interactive site, RiffTrax.com, where consumers can download commentaries from "Mystery Science Theater 3000" star Michael J. Nelson and others and listen to them in sync with their own DVDs or downloaded movie content. RiffTrax's latest feature is iRiffs, where users can upload their own commentaries on any movie and sell them to fans worldwide.