A reverse stock split and name change are in the works for Medient Studios, Inc.
The company is planning a film studio on 1,500 acres at Interstate 16 and Old River Road in Effingham County.
Medient CEO Jake Shapiro said the 1 for 1,000 reverse stock split could make shares in the company more valuable and attractive on the market.
Shapiro said the charters of some companies prohibit the purchase of stocks below a certain price, and that has kept Medient off the radar for some investors.
An increased price can draw more investors and also allow the company’s stock to be traded on a big-board exchange.
Medient has been traded over-the-counter as a penny stock. Penny stocks are not traded on the more traditional exchanges.
The Securities and Exchange Commission suspended trading of Medient stock for 10 days earlier this year because of questions surrounding the accuracy of the company’s public disclosures.
The SEC action came following a hostile takeover, with Shapiro replacing Medient founder Manu Kumaran. Litigation over the change continues in Nevada, where the company is incorporated, and a shareholder lawsuit continues in Effingham County.
The stock is being traded again over-the-counter and on Wednesday was valued at 0.001 cents.
The name change, to Moon River Studios, Inc., is a reflection of the company’s new focus, Shapiro said.
“Since June 9 we have moved mountains,” Shapiro said. “We now have a clear, focused mission.”
The name change also bridges “Old Hollywood and the region, Shapiro said.
“It’s inspired by Louis B. Mayer, Samuel Goldwyn and Charlie Chaplin, all great filmmakers,” he said.
Shapiro said the area’s connection with Moon River, the song by Savannah native Johnny Mercer, and the studio’s proximity to the Savannah River, made the new name ideal.
Shapiro recently presented what he called more efficient plans for the Effingham studio site to the Industrial Development Authority.
The latest plans put more emphasis on the basics of film production and less on whimsical elements such as a bridge over wetlands, solar trees and a glass “leaf” over an outdoor pavilion that were part of the original plans.
But the later phases still include two hotels, a lake, baseball fields, soccer fields, tennis courts and a 20,000-seat amphitheater.
The company was a year behind on its development schedule as of July. It is through the first year of its two-year construction period before its first rent payment on the IDA land comes due.
A revised agreement with the company and the IDA would set up a new schedule of when certain things must be completed.
The change notifications will be filed with the SEC and should be official in about 30 days, Shapiro said.