Producers of Red Light Runners, who are attempting to finance a Hollywood blockbuster being through...
Producers of Red Light Runners, who are attempting to finance a Hollywood blockbuster being through a UK enterprise investment scheme, are going to have to call an extraordinary general meeting (EGM) and issue a supplementary prospectus to get around errors in the way the scheme was launched according to legal advisers.
The project is unlikely to be put back on the shelf given the successful raising of the first £2m tranche of funding out of the £8m needed to finish filming.
But the EGM will be required because certain articles are likely to be changed in relation to the split between A and B shares in the offering, and because of the addition of another company director - changes that existing shareholders must vote on.
A minimum of 21 days is required to call an EGM, while the supplementary prospectus will also be required to put in writing the changes made.
Co-producer Clark Westerman stresses that investors should not view the scheme as a tax-loss-leader, like certain other EIS schemes in the past.
There is ongoing interest in the project by big Hollywood names such as Dennis Hopper, and commitments from a number of other actors already in the bag, he says.
The 'mistakes' in the original prospectus and appointment of another director should not throw the overall schedule off track, he adds, and filming is still planned to start in London sometime in October.
The minimum investment is likely to remain set at £2,000.
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