RGM Media posts $1.4m loss
By Brendan Swift
Talent agency RGM Media is still aiming to produce a sequel to the 1991 hit film Point Break after posting a $1.41 million net loss last financial year.
It follows a $3.88 million loss in 2008-09 although both financial results were largely derived from the operations of former biotech company Biosignal, which provided RGM with the mechanism to complete a backdoor listing on the Australian Securities Exchange earlier this month.
The company raised $4 million from shareholders in July and has previously said it will use about $2.42 million of the proceeds to produce Point Break 2.
“The directors believe that this project and other operations of the RGM Media group will deliver profits for shareholders in years to come,” the company said in its results announcement last Friday.
“For this reason they are of the view that the company is a going concern. However, should losses continue the company may not be able to continue as a going concern.”
RGM was founded by Robyn Gardiner in 1982 and is best known for co-representing high profile actors such as Cate Blanchett.
Meanwhile, former Biosignal chairman Tim Boyd has resigned from RGM Media and has been replaced with Andrew Hosking.
A company associated with Boyd was paid a $150,000 “success fee” for arranging the RGM deal and $70,000 in consulting fees. Half of the success fee can be converted to RGM shares at 1.5 cents per share – RGM shares are currently trading at 11.5 cents apiece.
Boyd also received a $350,000 termination fee on August 26, as well as 200,000 new shares and 200,000 new options. Shareholders approved the arrangement at an extraordinary general meeting on March 19.