Dear Valiant Eagle Inc. Stakeholders,
As we bid farewell to 2023, reflecting on the past year fills me with gratitude for the incredible journey we've undertaken together. Both on a personal and professional level, this year has been nothing short of riveting, marked by significant growth and invaluable lessons.
Navigating the responsibilities of a Chief Executive Officer has been a transformative experience. In the pursuit of leadership excellence, I discovered that being adaptable and resilient are not just desirable traits but imperative qualities. The dynamic nature of our industry demands not only a visionary leader but also someone who can swiftly adapt to change and steer the company towards success.
One of the highlights of the year was the humbling recognition bestowed upon me—the Lifetime Achievement Award from President Joe Biden. This prestigious acknowledgment is not just a personal achievement but a testament to the collective efforts of the entire Valiant Eagle family. Our commitment to community service and corporate leadership, particularly in the media, gaming, and sports sectors, has not only garnered attention but has left a lasting impact.
Leading a publicly traded corporation with 12 subsidiaries, our influence extends far beyond the boundaries of the business sector.Top of Form
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Valiant Eagle, under my stewardship, has played a crucial role with a special emphasis on creating opportunities for homeless veterans and those affected by the pandemic. This commitment to social responsibility was further recognized through the initiatives of San Diego Community Assist (SDCA), an organization I am proud to have founded.
SDCA, driven by my strategic vision, has been a force for positive change. From addressing homelessness to enhancing education, providing employment support, and fostering community-law enforcement relations to decrease crime, SDCA has become a beacon of hope. Our mission, anchored in a comprehensive effort to elevate the quality of life, emphasizes housing solutions and employment for veterans, minorities, and the unemployed.
As we enter the new year, Valiant Eagle is poised for success in the media, gaming, sports, and entertainment sectors. We've entered into strategic partnerships that position us for significant market expansion. These collaborations will open new avenues for growth and enhance our competitive edge. Our unwavering commitment to excellence, innovation, and social responsibility positions us as a leader in the industry. I am confident that our collective efforts will continue to drive our success and make a lasting impact on the communities we serve.
I extend my sincere gratitude to each and every stakeholder in the Valiant Eagle family for your dedication and hard work. Together, let us embrace the opportunities that lie ahead in 2024 and continue to soar to new heights.
Reflecting on the multifaceted role of a CEO at Valiant Eagle, I have dedicated this year to steering our company towards long-term success and enhanced shareholder value. Here are some key facets that have been at the forefront of our efforts:
Strategic Vision and Leadership:
- Developing and communicating a clear and compelling vision for the company's future.
- Providing strong leadership to inspire and motivate employees, fostering a positive and high-performance culture.
Financial Performance:
- Ensuring sustainable revenue growth and profitability.
- Implementing effective cost management strategies.
- Developing a strategy to maximize shareholder value through dividend payments and share buybacks when appropriate.
Corporate Governance:
- Upholding high standards of corporate governance and ethics.
- Ensuring transparency in financial reporting and compliance with regulatory requirements.
- Fostering a culture of accountability and responsible business practices.
Talent Management:
- Attracting and retaining top talent.
- Developing leadership pipelines and succession plans.
- Fostering a diverse and inclusive workplace.
To expand key relationships and corporate synergies, we have entered into a partnership with Dr. Lance McCarthy, an accomplished financial leader. Dr. McCarthy's role includes providing strategic financial guidance, leveraging his extensive network, and actively participating in key decision-making processes. His expertise is pivotal in making key introductions to access capital, enabling the company to scale and expand effectively. Dr. McCarthy has been key in orchestrating meetings and facilitating material transactions for the company. His influence has led us to several key opportunities which will enhance the bottom line performance of the company.
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Welcoming HRH Prince Gharios El Chemor of Ghassan as the Head of International Relations and Strategic Partnerships further strengthens our global presence. With connections in over 50 countries, including two royal families, Prince Gharios brings invaluable international experience and insight to our expansion efforts. Part of Prince Gharios’ duties includes introducing our organization to his network overseas. Additionally, he will be involved in the development of properties suitable for the international market. We have already initiated the development of a version of Fists of Fury suitable for the Middle East, as well as one tailored for the Chinese market
Valiant Eagle has entered into an investment banking agreement with a prominent Finra-registered Wall Street firm to enhance our acquisition strategy and secure capital. This strategic partnership is geared towards uplisting our company to NASDAQ, with a comprehensive plan to raise up to $100 million for media and entertainment acquisitions and investments. The company is fully committed to meeting reasonable and achievable terms and conditions outlined in that agreement. We have initiated discussions and negotiations with potential business sellers, aligning with the criteria established by the bank. Upon the completion of these acquisitions, our market capitalization is projected to surpass $200 million, enabling us to fulfill a critical criteria necessary for uplisting.
We have reduced our convertible debt. Pursuant to our last filing with OTC Markets Group for the period ending September 30, 2023, we had two entities that held notes of which only one remains. We expect them to be finished converting their debt within the next few weeks. This explains the increase in the issued and outstanding share count. However, as previously mentioned, we are not entertaining a reverse split.
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PROVIDENCE FILM GROUP
Providence has been very active in 2023. There has been significant activity that has allowed us to position ourselves as a prominent contender in the film and television industry. As we've completed production on projects and developed others, we have strengthened our presence. 2024 is poised to be our most financially successful year in our journey.
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As we reflect on the remarkable strides made by Providence Film Group (PFG) throughout this year, I am pleased to share the highlights of our achievements and endeavors. Please be aware that the following includes forward-looking statements.
Strategic Partnerships: Among our many endeavors this year, PFG sealed a strategic deal with Advantage Video Systems (AVS), a prominent company with a stellar portfolio of clients including Disney, NBC, and FOX. We anticipate that this partnership will play a crucial role in mitigating costs on all of our television and film productions. AVS has a stellar portfolio of over 250 television stations nationwide and a client roster that includes industry giants such as Disney, NBC, Universal, FOX, NFL, AT&T, American Film Institute, Company 3, RedFoo, Macy Gray, U2, Crystal Cathedral Church, TV Guide, the Dalai Lama, and more. This partnership will see PFG and AVS working together on a minimum of five upcoming audiovisual projects. The specific terms and conditions for each project will be negotiated at a later date to ensure the best possible outcomes for both companies.
Film Development: We are excited to announce the commencement of the massive reboot of DC Comics' "Swamp Thing." Originating in 1971, the 1982 American superhero horror film, directed by Wes Craven, is set for a fresh take. While the script is in development, we anticipate the storyline to take a very unique slant on the original project.
In addition, we are actively working on rebooting the iconic film "Fists of Fury" (also known as "The Big Boss"), originally released in 1971. With the working title "Fists of Fury: Johnny Too Bad," under the direction of Damian Lee, the reboot aims to capture the spirit of the original and make a significant impact in the cinematic world. We anticipate budgets of $30,000,000 for each film.
Alongside Swamp Thing and Fists of Fury, our film slate is exceptionally diverse. From our captivating George Michael biopic to the thrilling saga of US and Russian astronauts in a gripping race to the moon, we offer a wide array of film experiences that will soon grace both the box office and streaming platforms. Our production slate remains vibrant and robust, with an assortment of projects at every stage of development.
Distribution Success: We are delighted to share that several of our titles, including Going Beyond Story, Harlem Tigerman, Opportunity Knocks, and Stand Up For California, have been picked up for distribution by channels such as Demo - Ganjing World, Zvoid, Future Today, Discovered, and Cineverse to name a few. This success is expected to contribute significantly to our revenue stream this year.
Docuseries and Reality Shows: The captivating docuseries "Talk Dental to Me," funded by Biolase (NASDAQ: BIOL), has successfully concluded six episodes and is currently in the process of being presented to major companies for distribution. We are optimistic about securing an acquisition from a prominent network, which is likely to result in the order of additional episodes. Building on the success of Season 1, we foresee the network expressing interest in commissioning Season 2 as well.
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Additionally, the pilot for the highly anticipated singing competition reality show, "Ambush Karaoke," produced and directed by Paula Abdul and industry veteran Ron DeShay, is completed and poised for sale to major networks like FOX. We are set to take meetings January and February 2024 for an acquisition.
Documentary and Horror Film: Our feature documentary about playground basketball, tentatively titled Fathers of the Sport – the series, has been repurposed as a six-episode series inspired by Michael Jordan's "Last Dance." The horror film "The Knock" is expected to conclude post-production by early February, with a winter release slated.
Challenges and Triumphs: Projects with New Republic Pictures, including "Zelda" and "Wild Geese," faced challenges due to political circumstances. The lead investor's ties to Russia prompted Paramount to sever connections, requiring New Republic to secure a new major investment partner. We are happy to state we anticipate the entering development and preproduction Quarter 2 of 2024. We believe a buyback from the proceeds from Zelda will reduce the issued and outstanding significantly.
EB5 Program
In 2021, we entered into a strategic agreement with EB5AN to sponsor our film slate for funding through the EB5 Visa program. Regrettably, due to the challenges posed by the COVID-19 pandemic and the subsequent changes in administration, the program faced delays. However, I am pleased to announce that we have now obtained full approval to engage foreign investors for EB5 funding, specifically directed towards our compelling slate of films.
We are actively engaging in discussions with potential foreign investors to facilitate funding into our film slate fund. The projected total raise for this initiative is approximately $20 million, a sum that will be instrumental in bringing 15-20 exceptional projects to life.
This renewed venture signifies not only an opportunity for financial growth but also a testament to our resilience in navigating external challenges. As we move forward, we remain committed to leveraging the EB5 program to its fullest potential, fostering collaboration with international investors to contribute significantly to the success of our film endeavors.
VE GAMING
It brings me great pleasure to present a comprehensive summary of VE Gaming's remarkable journey, highlighting unprecedented growth and strategic initiatives that have positioned us for even greater success in the gaming industry.
Since our inception, VE Gaming has experienced exponential growth, establishing itself as a key player in the dynamic and competitive gaming landscape. Our commitment to delivering top-notch gaming experiences, fostering community engagement, and embracing innovation has been the driving force behind our remarkable ascent.
Flagship Game: Roo Awakening
We proudly unveiled the playable demo for our highly anticipated flagship video game, Roo Awakening. This groundbreaking title is poised to revolutionize the gaming landscape, debuting spectacularly on Web 3 and transcending all gaming platforms. The global video game market, valued at $175 billion in 2021, underscores the industry's remarkable growth and potential.
Roo Awakening promises players an immersive storyline, delivering an unparalleled gaming experience that seamlessly blends elements of strategy, survival, and adventure. More than just a game, it represents an epic journey of redemption, strength, and the unyielding spirit of a species refusing to be forgotten.
Monetization Strategies
To ensure the success of Roo Awakening and enhance shareholder value, VE Gaming is implementing a range of diversified monetization strategies:
- Game Sales: Offering both physical and digital copies through retail stores and major online platforms like Steam, PlayStation Store, Xbox Store, and Nintendo eShop.
- In-App Purchases (IAP) and Microtransactions: Enhancing the gaming experience with virtual goods, currency, and items available for purchase within the game.
- Subscription Models: Providing access to a library of captivating titles through subscription services, similar to platforms like Xbox Game Pass and PlayStation Now.
- Downloadable Content (DLCs): Expanding the game universe with additional downloadable content, enriching players' experiences.
- Ad Revenue: Generating revenue through in-game advertisements, particularly in the free-to-play gaming model.
Landmark Agreement with the American Basketball Association (ABA)
In a significant achievement, VE Gaming signed a license agreement with the American Basketball Association, securing the right to create an officially-licensed ABA video game. As the global video game market is projected to reach $583.69 billion by 2030, this move positions VE Gaming to elevate the gaming experience for NBA enthusiasts. The licensed game, styled after "NBA 2K," will feature ABA teams, players, and related content, with profit-sharing terms outlined in the agreement.
The signing of a license agreement between VE Gaming and the American Basketball Association (ABA) represents a significant milestone for VE Gaming, carrying positive financial implications. This strategic move has several noteworthy aspects:
- Associating with the ABA, a prominent basketball association, enhances VE Gaming's brand recognition and credibility. It aligns them with a well-established sports entity, potentially attracting a wider audience.
- The synergy between VE Gaming and the ABA creates a mutually beneficial partnership. VE Gaming gains access to the ABA's rich history, teams, and players, while the ABA benefits from exposure in the gaming community.
- The inclusion of profit-sharing terms in the license agreement signifies a collaborative approach. VE Gaming and the ABA will likely share the financial success of the video game, fostering a long-term and mutually rewarding partnership.
- Monetization strategies, such as in-game purchases and downloadable content featuring ABA teams and players, provide additional revenue streams. This could lead to sustained profitability as the gaming community invests in enhancing their gaming experience.
- The creation of an officially-licensed ABA video game allows VE Gaming to cater specifically to NBA enthusiasts. This targeted approach enhances the gaming experience for fans who can now immerse themselves in a virtual world featuring ABA teams and players.
In summary, VE Gaming's license agreement with the ABA is a strategic move that not only positions them in a rapidly growing market but also opens avenues for revenue generation, brand elevation, and an enhanced gaming experience for NBA enthusiasts. The profit-sharing terms and synergies between the gaming and sports industries contribute to the overall positive financial outlook for VE Gaming.
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Other Games and Plans
In addition to Roo Awakening, our development pipeline includes exciting titles such as Rabbit Race, Gator Guise, Unicorn Fart Race, and Fists of Fury. Anticipate playable demos for each game, with varying release dates for the full versions.
Moreover, VE Gaming is actively pursuing the acquisition of existing games and gaming portfolios, a strategic move to diversify revenue streams and fortify our position in the gaming industry.
In line with our vision to elevate VE Gaming to new heights, we are excited to announce the initiation of several strategic acquisitions. These carefully curated partnerships are poised to not only enhance our company's valuation but also fortify our position as a leader in the gaming sector. Each acquisition has been meticulously chosen to complement our existing strengths, expand our portfolio, and tap into emerging markets. These acquisitions are not just about expansion; they are strategic moves aimed at boosting our valuation and creating diversified revenue streams. VE Gaming is poised to harness synergies across these new ventures, unlocking unprecedented value and contributing to our overall financial robustness.
ABA Canada
In 2023, our focus has been on assembling a talented team and forming strategic alliances crucial for the successful launch of ABA Canada. We have also finalized the markets in which we will offer territories. Aligning ourselves with key partners will be instrumental in the success of this ambitious undertaking.
Strategic Roadmap: A comprehensive roadmap has been developed to guide our journey. This plan outlines the critical areas of focus and the steps necessary for the establishment and growth of ABA Canada.
Key Initiatives:
- Market Research: Conducting extensive market research is underway to understand the Canadian sports landscape, basketball fan demographics, and regional preferences. Identifying potential fan bases, sponsors, and media partners is a crucial step in tailoring our approach to the unique Canadian market.
- Business Plan: A robust business plan is in development, encompassing the league's structure, revenue streams, marketing strategy, and financial projections. Clear definition of our unique selling points and value proposition will set the foundation for ABA Canada's success.
- Legal and Regulatory Compliance: Understanding and complying with all legal and regulatory requirements for establishing and operating a professional sports league in Canada is a top priority. Building strong relationships with relevant sports governing bodies and authorities is essential for a smooth operation.
- Team Selection and Franchise Model: Determining the number of teams, their locations, and the franchise model is a critical step. Attracting reputable ownership groups that meet financial and operational criteria will contribute to the league's credibility.
- Player Recruitment and Development: A player recruitment strategy is being developed to attract top talent to the league. Partnerships with local basketball programs and colleges will support player development and foster a robust talent pool.
- Venue Selection: Efforts are underway to secure suitable venues for games, ensuring they meet professional standards and are accessible to fans. Future considerations for expansion and venue upgrades are being taken into account.
- Broadcasting and Media Rights: Negotiating broadcasting and media rights deals to maximize exposure for the league is a key objective. Leveraging digital platforms and social media will be essential to engage a broader audience.
- Sponsorship and Partnerships: Attracting corporate sponsorships and establishing partnerships with local businesses are crucial to enhancing revenue streams. Building mutually beneficial relationships with brands aligned with the league's values is a priority.
- Marketing and Promotion: A robust marketing strategy is in development to create awareness and generate excitement about ABA Canada. Utilizing various channels, including social media, traditional media, and grassroots initiatives, will help reach a wide audience.
- Fan Engagement: Initiatives such as events, promotions, and fan clubs are being planned to build a loyal and passionate fan base. An interactive online presence will be established to connect with fans and gather valuable feedback.
- Game Day Experience: Enhancing the overall game day experience for fans is a focus, including halftime shows, entertainment, and promotional activities. Fan-friendly policies and amenities at venues will contribute to a positive experience.
- Player Welfare and Community Outreach: Prioritizing player welfare, health, and safety protocols is paramount. Engaging in community outreach programs will build a positive image for the league and its players.
- Technology Integration: Embracing technology for data analytics, fan engagement apps, and improving the overall viewing experience is on the agenda. Implementing instant replay systems and other innovations will enhance the quality of the game.
- Financial Sustainability: Implementing sound financial management practices is crucial for the long-term sustainability of ABA Canada. Diversifying revenue streams and creating contingency plans for unforeseen challenges will contribute to financial stability.
VE Publishing
I am delighted to share a momentous announcement with you all. Valiant Eagle Inc has taken a bold leap into the realm of literary ventures with the establishment of our new subsidiary, VE Publishing. Specializing in book publishing, VE Publishing is poised to make a significant impact in the literary industry.
In a strategic move, Valiant Eagle Inc has successfully secured the rights to over 10 promising literary properties, including Retail Villains, Gator Guise, The Bow and the Arrow: A Metaphor for Relationships, and several others underscoring our dedication to curating a diverse and compelling portfolio. This venture represents a noteworthy expansion of our business into the captivating world of storytelling and creative expression.
With a robust foundation and a collection of captivating titles, we are enthusiastic about the potential of VE Publishing. Our optimism extends beyond establishing a presence in the publishing landscape; we foresee this venture contributing significantly to Valiant Eagle Inc's overall revenue stream. The company eagerly anticipates the promising future of this new venture, with the aspiration of delivering engaging and thought-provoking content to readers around the world.
Franchise X Entertainment
It is with immense pride and excitement that we share the remarkable achievements and milestones accomplished by Franchise X Entertainment. Throughout 2023, our dedicated team has tirelessly worked to elevate our brand, enhance our offerings, and, most importantly, deliver unparalleled entertainment experiences to our valued audience.
One standout success of the year was the exceptional performance of Notchoaziz and his latest single, "That's Enough." In its debut week, the single surpassed an impressive 20,000 streams on Spotify alone, a testament to the artist's talent and the unwavering support of our incredible fan base. This achievement underscores our commitment to nurturing and promoting exceptional talent within the Franchise X family.
Furthermore, we are delighted to announce the release of Belle Aire's electrifying single, "Vogue." This release not only captivated audiences but also marked a significant milestone in Belle Aire's career, as she secured a promising deal with Sony Orchard. The collaboration with the renowned supermodel Beverly Peele for the remix of "Vogue" adds an exciting dimension to this project, exemplifying our dedication to fostering unique and groundbreaking collaborations in the entertainment industry.
Looking ahead to 2024, we are thrilled to share that Franchise X Entertainment has some truly game-changing announcements and projects in the pipeline. We are committed to pushing the boundaries of creativity, innovation, and entertainment excellence.
ACQUISITIONS
In our unwavering commitment to scaling our company, we are actively pursuing strategic acquisitions in key sectors such as AI, gaming, and intellectual property. The meticulous identification and targeting of potential companies align with our vision for robust expansion. Throughout 2023, we anticipate finalizing several acquisitions that will not only enrich our asset portfolio but also significantly contribute to the growth of our existing subsidiaries under our control.
Recognizing the paramount importance of governance and leadership, we are concurrently directing our focus towards establishing a formidable and reputable Board of Directors. Simultaneously, we are dedicated to augmenting our C-suite team, ensuring a well-rounded and capable leadership that will drive the company's success in these dynamic industries. This multifaceted approach underscores our steadfast commitment to positioning the company for sustained growth and success in the coming year and beyond.
Forward-Looking Statements:
In the coming year, we are dedicated to maintaining effective communication with our shareholders, analysts, and other stakeholders, providing timely and accurate information about the company's performance and strategy. I'm also excited to announce that we are returning value to our shareholders through increased dividends and share buybacks. This reflects our confidence in the company's financial health and commitment to delivering shareholder value.
Additionally, our commitment extends to fostering a culture of innovation and adaptability, ensuring that we stay competitive in the market. We will remain vigilant, keeping abreast of industry trends and technological advancements, and adapting our strategy to meet the challenges and opportunities presented by changing market conditions.
Furthermore, we will actively evaluate potential mergers and acquisitions (M&A) opportunities that align with our strategic objectives. Our focus will be on executing M&A transactions effectively, carefully considering risks and benefits to maximize value for our stakeholders.
Conclusion
We firmly believe that a company's success is intricately tied to its commitment to acting in the best interests of all stakeholders—employees, customers, communities, partners, and shareholders. This holistic approach serves as the foundation for our continued growth and prosperity.
To our valued shareholders and everyone engaging with this letter, we extend our gratitude for your unwavering support. The remarkable achievements and resilience demonstrated by our team, particularly amid the challenges posed by a global pandemic that significantly impacted numerous industries, showcase the strength of our collective efforts.
Your support is the driving force behind our accomplishments, and as we navigate the ever-evolving business landscape, we remain steadfast in our commitment to delivering value. We are optimistic about the future and look forward to sharing further updates on our progress in my next letter.
Thank you once again for your support, and we look forward to a promising future together.