Investment type: Class B Nonvoting Membership Units
$100 per Class B Nonvoting Capital Unit | When you invest you are betting the company’s future value will exceed $1.1M.
For investors, all of the adjusted gross profits* go to you first, before any producers, actors, director, etc, see any returns.
Once every investor, classified as those holding Class B Nonvoting Capital Units, has been paid back 115% of their investment, then all net profits will be divided into two profit pools, each equal to 50%. One pool will be for investors to share pro-rata, pari passu with all other investors against the full budget of the film. The other pool will go to the producers (actors, director, writer, etc.).
This type of revenue sharing of profit occurs in perpetuity. Potentially allowing returns for the next 20 or 30 years, or beyond.
Minimum Investment: $100
Security Type: Class B Nonvoting Membership Units
Round Size: Min: $10,000; Max: $1,070,000
Pre-Recoupment: Investors will retain 100% of the Company’s ("Karaganda, LLC") adjusted gross profits* up to the repayment amount of 100% of their investment, plus an additional 15% bonus, then a prorated share of 50% of remaining (net) profits.
After Recoupment: Any profit after the recoupment+15% will be shared 50%/50% between Class A and Class B membership units.
Pre-Money Valuation: $100,000
*gross profits allocated subject to terms of Karaganda, LLC Operating Agreement attached as an Exhibit to the Offering Document below.
If the film raises between $250k and $476k in total equity, the feature will be new footage and reused footage from the 26 min. short including outtakes, with the original cast that appeared in the short. This version will be 1/3 Russian and 2/3 English and shot 95% in New York, with 5% in Los Angeles. This film will not be commercially available, and solely available on the festival circuit.
If the film raises between $476k and $699,999, the feature will consist of new footage and the original cast from the short. This version will be 1/3 Russian and 2/3 English and be shot 20% in Los Angeles and 80% in New York. This version will be commercially available, but will have a scaled-back production. We estimate the production quality will be the same as the AFI thesis short, but in color.
If the film raises between $700k and $1 million, the feature will be the same as above, but without cuts to the screenplay and a Hollywood-level production value.
If the film raises more than $1 million in equity, we will aim for a total budget of $2.5 million with the difference coming from financing through state tax incentives and pre-sales. The feature will consist of new footage only and include the original cast, albeit in different roles. We will target known A-list actors for several of the lead parts. This version will be 90% in English, 10% in Russian. The plan is to shot in Georgia, USA to take advantage of state tax incentives.