I think I got carried away there, Sony is not putting money in...

I think I got carried away there, Sony is not putting money in just getting the 17 Million shares.....

Reeltime has to get approval of the shareholders


the following article was in the Australian of yesterday

What is interesting is that they state "Mr Karantzis is MOL's majority owner, holding around 21 per cent of its shares" That is incorrect the largest parcel of shares of about 40% is held by Sam Bruno

ONLINE movie start-up ReelTime (RT) has announced a bid to get the company back on its feet after suspending its shares from trading three months ago.
RT is seeking shareholder approval to raise $3.9 million through share placements and an equity deal for Sony Pictures Television to take its stake in the company from 3.8 to 8.8 per cent.

The deal would cost Sony Pictures Television $900,000.

RT would raise the remaining $3 million by issuing another 58 million ordinary shares.

The company could relist on the ASX within seven days.

RT managing director John Karantzis said it was safe to assume the deal would be approved.

Privately owned entity Movies Online Ltd (MOL) holds a 55 per cent controlling stake in RT.

Mr Karantzis is MOL's majority owner, holding around 21 per cent of its shares.

He said that he knew "where the controllers of the company" sat on the proposal. "I think we can say that it's fairly comfortable to get shareholder approval."

RT plans to return to the market with an overhauled business model.

It will include ad-supported movie downloads, a game and DVD mail order distribution portal, and execution of more than a dozen content and marketing agreements signed with software titan Microsoft. It also said it would launch its branded hybrid set top box PVR unit announced last year.

The new ad-supported online movie model would let subscribers purchase credits to download movies in exchange for viewing advertising content.

Mr Karantzis said subscribers would need to watch about 15 online advertisements in order to purchase enough credits to download a TV show. "Only 6 to 10 per cent will put their hand in their pocket and pull out a credit card, whereas if you go to an advertising-based model, you can potentially monetise 100 per cent of your audience."

Mr Karantzis said that the company expected to announce its advertising partners soon.

RT suspended its shares from the stock market in February as the company's spending out-stripped its revenue.

At the time, company statements revealed that its cash reserves had dwindled to $795,000 after it went through $1.5 million in the three months to the end of December 2006.

Its income was only $24,000.

RT said it would reveal its current cash position before relisting in accordance with corporate regulations.