FONU2 Inc (OTCMKTS:FONUD) announced a deal with Moon River Studios Inc (OTCMKTS:MDNT) to acquire 1,560 acres lease from the latter in Effingham Country, Georgia. The company agreed to pay for the acquisition through cash and stock. It expects to build sound stages to address the shortage of the same in the region.
On Feb. 10, FONU2 Inc (OTCMKTS:FONUD) said it secured a 1,560 acres lease from Moon River at a purchase price of $10 million in cash and 10 million shares of its stock. Further to the property acquisition, FONUD also secured certain intellectual property and trademarks related to the project.
The 1,560 acre property that FONU2 Inc (OTCMKTS:FONUD) acquired from Moon River has an appraised value of more than $22 million. Under the deal, FONUD agreed to invest a certain amount in the property and also create an agreed amount of jobs. Further to that, the terms of the agreement spells out that FONUD will not face any property taxes during the lease. At the conclusion of the lease term, FONUD may purchase the property.
According to FONU2 Inc (OTCMKTS:FONUD)’s CEO, Roger Miguel, the acquisition is a major invent for the company and its shareholders. He stated that there is a major shortage of sound stages in George, yet movie industry is growing rapidly in the state. Given the massive demand for sound stages in the state, the CEO said their immediate focus will be on construction of the stages. They want to address the shortage and tap revenue in the robust movie industry in Georgia.
In a move aimed at preparing FONU2 Inc (OTCMKTS:FONUD) for listing on national exchanges, the company decided to reverse-split its common stock. The 1-for-400 reverse split reduced the number of the company’s outstanding shares to 2.8 million from about 1.2 billion. The number of preferred stock also reduced to 6,250 from 2.5 million. The management cited that the split also helped to improve market awareness of the stock.
FONU2 Inc (OTCMKTS:FONUD) is involved in film production and has been looking for new opportunities to improve its capacity and attain growth. Shares of FONUD have risen by a whopping 45,900 so far this year amid increased efforts to focus the company on growth areas of the industry.