Corgi International Limited Provides Notice Withdrawing Offer to Secure a New Licensing Agreement with Lucasfilm Ltd.
Jay Cochran - May 15, 2007
Corgi International Limited (Nasdaq GM:CRGI) today announced that it has notified Lucasfilm Ltd. that the company has withdrawn its offer to secure a new license agreement for Star Wars products starting January 1, 2008. The company's existing license with Lucasfilm Ltd. for Star Wars products expires on December 31, 2007. Lucasfilm Ltd. had previously notified the company that it was not willing to provide a new license on the terms proposed by the company. Corgi believes that it is not in the best interest of its shareholders to accept a new license on the terms proposed by Lucasfilm Ltd.
While Corgi does not expect to secure a new license for Star Wars products from Lucasfilm Ltd. starting January 1, 2008, the company continues to expect to generate approximately 20% of total net sales for the fiscal year ending March 31, 2008 from sales of products from the licensed properties of Lucasfilm Ltd. As such, the company is maintaining the guidance issued on February 20, 2007 regarding the fiscal year ending March 31, 2008.
CEO Michael Cookson commented, "We have enjoyed our six year relationship with Lucasfilm Ltd. and the work that we have done with Lucasfilm Ltd. to help grow and expand the Star Wars franchise. Jointly, we have developed some of the highest quality and coolest products for the core Star Wars fans. At the same time, Corgi is committed to building a healthy, profitable company. Unfortunately, the company and Lucasfilm Ltd. were unable to agree on terms for securing a new license starting in January 1, 2008. We look forward to continuing to develop growth opportunities at Corgi, thanks to our product development expertise, our strong distribution and our portfolio of license and non license business.”
Update: Being that Corgi now owns Master Replicas who are well known for their Star Wars prop replicas like the FX Lightsabers, we went to the folks at Master Replicas to see if this would effect them. Here is what they had to say at this time:
"Yes it will -- Master Replicas and Corgi are one and the same.
Beyond what is written in the press release, I cannot comment at this time."
Stay tuned to JediInsider for more information on this as details become available.
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