Company Begins Cessation of Florida Studio Operations
PORT ST. LUCIE, Fla.--(BUSINESS WIRE)--Sep. 7, 2012--
Digital Domain Media Group, Inc. (NYSE:DDMG) today announced that it has
initiated a strategic realignment that will enable it to focus its
resources on its core business, Digital Domain Productions, Inc., a
company focused on creating digital visual effects, CG animation and
digital production for the entertainment and advertising industries. As
a key part of this strategic realignment, DDMG has begun the cessation
of its Port St. Lucie operations by reducing virtually its entire Port
St. Lucie workforce, retaining approximately 20 employees who will
remain as part of the wind-down.
DDMG’s studios in California and Vancouver intend to continue to operate
without interruption, as will the Digital Domain Institute, based in
West Palm Beach, Florida. Long-time Digital Domain executive Ed Ulbrich
has been promoted to Chief Executive Officer of Digital Domain
Productions.
Digital Domain Productions is working closely with its clients, vendors
and other critical constituencies throughout this process.
DDMG is implementing this important operational change and will continue
to evaluate various restructuring alternatives, as previously disclosed,
as part of its effort to reduce its overhead and restructure its
long-term debt.
As previously announced, DDMG is continuing to work with the holders of
its senior secured convertible notes, each of whom has agreed to forbear
temporarily from exercising its remedies under such senior notes until
such time as it elects to withdraw such forbearance on not less than 48
hours’ advance notice to DDMG. An inability by DDMG to quickly access
additional sources of liquidity to fund its current operating cash needs
would materially adversely affect its financial condition and would
require it to seek relief or protection from its creditors.
John C. Textor has resigned, effective immediately, from his positions
as Chief Executive Officer and Chairman of the Board of Directors of
DDMG, as a member of the Board of Directors of DDMG, and from all
positions as an officer and director with all subsidiaries of DDMG.
Safe Harbor Statement
Certain statements in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements include comments about the
Company's plans, prospects, strategies and future performance. They are
made on the basis of our management’s current expectations and beliefs,
as well as a number of assumptions regarding future events and business
performance as of the time the statements are made. Such forward-looking
statements are subject to known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside the
Company’s control. These could cause actual results to differ materially
from the results expressed or implied in the forward-looking statements.
Such differences may result from actions taken by the Company, as well
as from developments beyond the Company’s control, including, but not
limited to: price volatility of the Company’s common stock; changes in
domestic and global economic conditions, competitive conditions and
consumer preferences; our dependence on a limited number of large
projects each year, and the timing of revenue flows from those projects;
developments in the status of strategic initiatives taken by the
Company; audience acceptance of feature films we may co-produce; and
rapid technological developments, including new forms of entertainment.
Further information on these and other factors and risks that could
affect our business is included in filings we make with the Securities
and Exchange Commission from time to time, including under the heading
“Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2012 and our Quarterly Report on Form 10-Q for the quarter
ended June 30, 2012. These documents are available on the SEC Filings
subsection of the Investors section of the Company’s website at: http://www.ddmg.co.
Information on our website is not part of this press release. All
information provided in this press release is as of September 7, 2012,
and the Company undertakes no obligation to update publicly the
information contained in this press release, or any forward-looking
statements, to reflect new information, events or circumstances, or to
reflect the occurrence of unanticipated events.
Source: Digital Domain Media Group, Inc.
Van Meter Consultants for Digital Domain
Jennifer E. Mercer,
818-981-2800
jmercer@vanmeterconsultants.com
or
Digital
Domain
Julie Miller, 310-259-5834
Director, Communications &
Marketing
jmiller@d2.com
