Following the closure of it New York production and distribution house The Shooting Gallery, parent company itemus is now facing several law suits
On July 2, several former Shooting Gallery executives filed suit in New York against both parent and subsidiary alleging a string of financial irregularities including fraud and misuse of funds, regarding investments in several productions including the Oscar-nominated You Can Count On Me. Separate court claims have been filed by the Shooting Gallery's former landlord and other investors, including the mother of one of the executives.
In a statement issued on July 6, the Toronto-based internet investor announced plans to issue $10m in common shares to satisfy "debt obligations". Itemus shares are trading at roughly six cents. The statement indicates a corporate life-and-death situation. "If itemus is unable to successfully defend against such claims, absent the receipt of additional financing, it will be unable to satisfy its obligations."
According to an itemus spokesman, the company never intended to enter the film industry and was hoping to sell off the production and distribution arms of the Shooting Gallery.