Back in January, it was announced Fortissimo selected Psyop as the target of its reverse merger, a course which, had it played out according to plan, would have made Psyop a publicly traded corporation along with an injection of $10 million in cash and $20 million in stock.
"Although with the market conditions the way they are, this has not ended up with the result we wanted, a lot of good has come out of it," says Psyop executive producer Justin Booth-Clibborn."We experienced firsthand the 'discipline' of going public, really focusing on our business and further maturing into a company with fantastic talent and the continued ability and resources to produce some of the best creative content in the world."
The shareholder meeting had been initially slated for early June, then September, and rescheduled again to today in New York, at each juncture facing an economy in greater turmoil than the last.
Last month, Psyop announced a potential merger would also bring with it a merger with Stink and its sub-brands, cementing the relationship based on co-productions between the two throughout Europe and Asia.
"The idea is that we'd start to form a little bit of a holding company that sits above the different brands," said Psyop executive producer Justin Booth-Clibborn last month, likening the potential Stink-Psyop IPO to a "holding company in the new media digital landscape."
Despite the potential behind this idea, the Stink factor wasn't enough to sweeten the deal, but Booth-Clibborn says both companies will reassess partnership opportunities.
Insiders cite the relative safety of cash positions over the potential losses in an IPO and general market anxiety as reasons the merger was scuttled. The $28 million held in trust by Fortissimo will be redistributed to investors Friday.