Animation Development Company, LLC

This company solicits investors for capital to develop and license animation projects. The animated pilot projects are pitched to networks for the purpose of licensing a potential television series. These 3-7 minute animated cartoon segments are produced and developed under contract to the company. For its financial involvement, the company retains a majority stake in revenue and equity ownership in the pilot. In other words, the company will own a controlling interest in the rights to the concepts and characters on which the series will be based.

Careful evaluation of all investment offers should be done prior to signing agreements. Rather than make an immediate decision, insist that the caller confirm details of the offer and all verbal promises in writing. Verify that the offer is registered, or exempt from such requirement, with your state securities commissioner. In California, call the Department of Corporations 213 576-7500. Limited Partnerships are required to register unless an exemption is filed with the state. General Partnerships, however, are not required to register. Those who invest in General Partnerships may also be accountable for the financial liabilities of the entire partnership. Offers claiming to be exempt from registration must meet specific requirements. Specifically, they must be limited to no more than 35 investors who are: immediate relatives or friends; current investors in other offers made by the company; persons referred by current investors; and to those with the expertise to make a valid decision. Generally, if an offer is sold via telephone, it is an indication it would not be qualified for exemption under current law.