Investors with a minimum of £1,000 to risk can for the first time directly back a Hollywood movie where potential returns would be 25pc of the movie’s profits.
Shares are being sold via crowdfunding website SyndicateRoom.
Lara Croft ‘Tomb Raider’ , released in 2001.
Called Salty, the movie is an “action comedy” about an ageing rock star and sex addict. It will be filmed in Thailand, among other places. The director is Simon West, whose hits have included the commercially successful Lara Croft movieTomb Raider, Con Air (starring Nicolas Cage, pictured below) and General’s Daughter.
Mr West claims none of his cinema-released moves have grossed less than $62m (£42m). If Salty grosses$50m (£34m), based on the costs and revenue flows detailed on the SyndicateRoom prospectus, he reckons investors would get a return of 50pc.
The movie has raised £10m from external sources and £1.8m already through SyndicateRoom, where it will continue to take further investments this week.
The prospectus says it is in “final negotiations with an all-star A-list cast”.
How to profit from crowdfunding
SyndicateRoom differs from other crowdfunding websites in that with every fundraising project a number of “lead” investors are named. These are men and women - often well-known - who commit their own cash into the venture. One of SyndicateRoom’s rules is that these investors own exactly the same class of share as smaller subscribers, ensuring their interests are aligned.
In other private equity arrangements some bigger investors can have preferential terms, for example, giving them access to earlier dividends or capital repayment.
In the case of Salty lead investors include Robin Birley, the controversial businessman and owner of a private member’s club in London’s Mayfair; and James Hanbury, a fund manager at Odey Asset Management.
Those who buy shares in Salty qualify for invome tax relief relief under the Enterprise Investment Scheme Rules.
You can read the article online here: ‘Back a Hollywood movie with as little as £1,000‘