Young Captain Nemo

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Young Captain Nemo (YCN) - Frequently Asked Questions (FAQs)*

* Please see the Disclaimer Page at the end of this Document

YCN 1 LLC FAQ

Last updated April 19, 2022

1. What are Content Ventures (“CV”)?

Content focussed Intellectual Property (“IP”) with an engaging storyline and multiple characters, targeting a well-crafted universe and a global community
Potential to become a valuable content franchise followed and celebrated by millions of fans
Typically backed by Premium Creators with a significant fan following
Opportunity for investors to own a piece of the IP organised within a dedicated Special Purpose Vehicle (SPV) and with benefits from interest payments, dividends, and capital gains
YCN is RGI’s first CV

2. What are different types of CVs?

Feature Films
TV / Digital Shows (Long/Short Form)
AR/VR/IR/MR
Animation
Music
Metaverse
Short Form Content
Video Games and Play-to-Earn Games
Digital Art
Books and Publications

3. How did you acquire and develop the YCN Intellectual Property (“IP”)?

RGI acquired a trilogy of books by a best-selling author, Jason Henderson
The thesis to launch RGI’s first Content Venture (CV) as YCN was driven by the existing rich legacy of Jules Vernes’ 20,000 Leagues Under the Sea. Adding further value was the ability to launch a number of Web3 products around the world of YCN (for e.g. the world’s first Underwater Ocean Metaverse)
RGI also values the natural storyline within YCN addressing the cause of ocean conservation

4. Who holds the rights for YCN’s IP?

RGI (Delaware) and Animasia Studio Sdn Bhd (Malaysia)

5. What are the different products being developed for the YCN IP?

Trilogy of feature films based on the books by best-selling author, Jason Henderson
Spin-off TV Series (3 Seasons)
A portfolio of NFTs with different utilities (for e.g. digital tickets for content access, digital art, music NFTs and other collectibles)
Video games (including Play-to-Earn games)
A first-of-its-kind underwater Metaverse
Physical Merchandise (for e.g. Bags, Action Figures, Cards, etc)

6. What are the targeted budgets and costs for each of YCN’s content products?

On average, each animated feature film will cost ~$4-5mn and each season of the TV Series will cost ~$5-6mn
Additional points:

7. What are the targeted release dates?

Additionally, YCN will also be launching multiple Web3 products, including NFTs, Play-to Earn Games and a first-of-its-kind underwater Metaverse
These products launches are expected to commence from the first quarter of 2023 and are expected to generate regular and continuous revenue

8. What are YCN’s targeted revenues? Key assumptions behind the revenues?

The total targeted revenues over a period of 7-8 years are projected to be in excess of ~$100mn
The key assumptions for the projected revenues are driven from relative data as well as RGI’s internal research team’s projections

9. How much will YCN’s first animated feature film cost?

$4 -$5mn

10. What are the different sources of YCN’s revenues? Why does RGI think it’s realistic?

Key sources of revenues (projected in excess of ~$100mn over a 7-8 year period + projected library value of over ~$100mn+):
YCN believes the assumptions are realistic since they are based upon the following:

11. What additional derivative revenue do you see coming?

Association with theme parks
FMCG products
Short form content
Podcasts
Comics (digital and physical)

12. Why is RGI so excited about NFTs when the market is depressed?

Most of the current NFTs are standalone products therefore have limited possibilities of long-term value creation
YCN’s NFTs are backed by a credible content franchise which has a rich legacy and are not just backed by well-defined utilities (digital tickets, music, collectibles) but also a wide range of revenue from both traditional and Web3 distribution
Backed by premium creators, YCN will also benefit from the targeted global fan community, which provides a good consumer base for YCN’s NFTs

13. Why is YCN called a Web3 IP? Is Web3 even important when YCN is a mere animated feature film?

YCN is a Web3 IP because:
Importance of Web3 IP:

14. Who are in YCN’s production team and what makes them so distinctive?

YCN’s creative team have been nominated for multiple awards (including Emmy nominations) and have demonstrated abilities to create successful animated franchises. Below is a snapshot of their credentials:

The core business team has a proven track record of building diverse businesses from start-up-to-IPO and have also invested early in a number of unicorns. Below is a snapshot of their credentials:

15. What are RGI and Animasia's credentials?

Rainshine Global Inc:

Animasia Studio Sdn Bhd:

16. What are the risks for YCN? How is RGI mitigating them?

17. What if the first YCN animated feature film flops?

YCN’s first animated feature film is tentatively scheduled for a December 2023 release. Prior to this, YCN’s fan building and monetization initiatives, which include global launches for music NFTs, Art & collectible NFTs and Play-to-Earn games, etc
Additionally, branded CVs (like YCN) have the potential of returning a large portion of the invested capital from sale of selective territory rights (which could be monetized before the first film’s release)

18. How does an investor make money or de-risk? Does the investor have liquidity?

Investors receive an 8% annual coupon commencing from the date of their investment, until principal payback
The current projections anticipate a 3 year pay-back period
After investors receive back their invested capital, the profit-sharing ratio between investors and producers is 30%/70% (adjusted for investor coupon pay-outs)
Web3 products (NFT, Metaverse and Play-to-Earn games) will create additional avenues of monetization and potential liquidity for investors

19. Has YCN insured the project?

Upon completion of fundraise, YCN will insure the project through E&O and through completion bonds

20. What is YCN’s distribution strategy?

Premium Video on Demand (“PVOD”):
Subscription Video on Demand (“SVOD”):

21. Do you have industry relationships and partnerships to promote and distribute YCN?

Animoca Brands (Web3 collaborator)
Polygon (Blockchain support)
Creator+ (Global community building)
Additionally, RGI’s global advisors include: Micheal Montgomery (Founding Partner of Dreamworks; Ex-CFO Euro Disney), Ben Grubbs (Founder, Next10 Ventures & Creator+), Nicole David (Entertainment Advisor, Ex SVP – William Morris Endeavor) and David Johnson (Ex-CEO – EMI Music)

22. How do you envisage effective Community Building in YCN?

An integral part of YCN’s strategy is to have fans become investors and active community participants who also promote the CV Franchise. Towards achieving such an objective, YCN will raise capital from angel networks and through crowd-funding initiatives, which will be recorded on ‘smart contracts’, housed on RainBlox
As a part of its efforts, YCN will activate premium celebrity-led campaigns across multiple social media platforms. YCN also aims to sign up popular voice artists (cast) with robust social media following, which further enhances the reach of YCN’s CV franchise globally and also supports in community building efforts
YCN also intends to build multiple Web3 products, which will not only give the fans, investors an avenue to monetize their investment, but also provide YCN with novel methods to reach out to a wider audience and build an engaged, enthusiastic and enduring community of fans

23. What is the stake of the key creative and business management teams in YCN?

a. The team will have a stake of up to 10%, before dilution to investors

Disclaimers

This FAQs have been prepared solely for information purposes only. They do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in any jurisdiction, nor shall it or any part of it, or the fact of its delivery or availability, form the basis of, or be relied upon in connection with, or act as an inducement to enter into, any contract or commitment whatsoever with respect to any securities. No part of the FAQ constitutes investment, legal, tax, regulatory, accounting or other advice of any kind

Certain information contained in the FAQs are from third party sources, which has not been independently verified. No responsibility is accepted, and no representation or warranty is made, by YCN 1 LLC as to the accuracy, reliability or completeness of such information or as to the reasonableness of any assumptions on which any of the same is based or the use of any of the same. The statements contained in the FAQs are made as at the date of these FAQs, unless another time is specified in relation to them, and the delivery or availability of these FAQs at any given time shall not give rise to any implication that there has been no change in the facts set forth in this document since that date. YCN 1 LLC. is under no obligation to update or keep current the information contained herein or to correct any inaccuracy contained herein except as explicitly required by law

The FAQs contain certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on YCN 1 LLC’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to YCN 1 LLC or are within its control. If a change occurs, YCN 1 LLC’s business, financial condition, liquidity and results of operations, including net asset value, assets under management, economic net income and fee-related earnings, may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: the general volatility of the capital markets; changes in YCN 1 LLC’s business strategy; availability, terms and deployment of capital; availability of qualified personnel and expense of recruiting and retaining such personnel; changes in the asset management industry, interest rates or the general economy; underperformance of YCN 1 LLC’s investments and decreased ability to raise funds; and the degree and nature of YCN 1 LLC’s competition. YCN 1 LLC. does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as explicitly required by law