Film Roman announced on Friday, April 6, 2001, that their board of directors has rejected last minute changes to the previously announced Pentamedia stock purchase agreement, and extended the deal close date to April 13 pending continuing discussions between the two companies. Under the terms of the existing agreement, Pentamedia was set to acquire a fully-diluted 60% stake of Film Roman in the form of newly issued common stock for $15 million in cash. In an open letter to employees which was published on the Film Roman Website (www.filmroman.com), the company stated that because of the drastic fall in the Indian securities market, Pentamedia asked the Film Roman board to consider changes to the January 31, 2001 stock purchase agreement.Subsequently, the board has extended the close date to April 13 while those proposed changes are reviewed. The letter went on to state, "Regardless of the Pentamedia dealOur company has never been strongerOur company has never had as much work-in-progressOur company has never had as many new animated and live action projects, both for-hire and proprietaryOur company has never been in a better position to meet the future than we are todaybecause in the end we still are 400 talented people with the expertise and resources to continue as a leading independent production companyWe are Film Roman."
Dan Sarto is Publisher and Editor-in-Chief of Animation World Network.
