Falcon's Beyond Global, Inc 8-K, filed Mar 12, 2024
Falcon's Beyond Global, Inc. (FBYD)
About this 8-K
Falcon's Beyond Global, Inc filed this 8-K on March 12, 2024, reporting on events of March 7, 2024.
Items reported
- Item 8.01: Other events
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01. Other Events.
On March 7, 2024, the Katmandu Park in Punta Cana, Dominican Republic (“Katmandu Park”) was closed to visitors. The closure follows financial, operational, and infrastructure challenges at the Katmandu Park and a recent shift in the strategic focus of Falcon’s Beyond Global, Inc. (the “Company”), as further described below. Katmandu Park, which is part of the Company’s unconsolidated Sierra Parima reporting segment and the Falcon’s Beyond Destinations business, was one of two entertainment destinations developed, owned and operated through three joint venture entities between the Company and Meliá Hotels International, S.A. (“Meliá”), and the closure of Katmandu Park does not immediately affect the operations of the other two joint venture entities. The Company believes that the closure of the park is in the best interest of the joint venture at this time because the closure eliminates potential ongoing operational losses.
Prior to the park’s closure, the Company experienced losses as a result of the financial, operational, and infrastructure challenges encountered at Katmandu Park, including as a result of visitor levels at Katmandu Park that were below management’s expectations. As part of the preparation of its financial statements to be included in the Company’s Annual Report on Form 10-K (the “Annual Report”), the Company has determined that it expects to record an impairment charge with respect to the Company’s investment in the Sierra Parima joint venture in the audited financial statements for the year ended December 31, 2023, to be filed with the Securities and Exchange Commission. A full description of such impairment charge will be included in the Annual Report.
As referenced above, the closure of Katmandu Park also aligns with the Company’s recent shift in business strategy, including its intention to employ an asset-efficient approach to its Falcon’s Beyond Destinations business and center its strategic focus and growth plans on the Falcon’s Creative Group (“FCG”) business. The Company expects growth and expansion of FCG to be bolstered by the previously announced strategic investment by Qiddiya and projects launched following this investment, including as part of the previously reported Consultancy Services Agreement with a total contract value of up to approximately $83.1 million, as further described in the Company’s Current Report on Form 8-K filed on January 26, 2024.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K (the “Form 8-K”) contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this in this Form 8-K, words such as “believe,” “expect,” “intention,” “may,” “might,” “plans,” “will,” “growth,” “expansion,” and similar expressions identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements. Factors that might cause future results to differ from those expressed by these forward-looking statements include, but are not limited to, the Company’s ability to successfully employ an asset-efficient strategy and to successfully center its strategic focus and growth plans on the FCG business, risks related to the Company’s joint ventures, uncertainties regarding the Katmandu Park, the Company’s financial results and expected impairment charge with respect to Sierra Parima, and the other risk factors included in the Company’s Registration Statement on Form S-1, as amended (File No. 333-275243), filed with the U.S. Securities and Exchange Commission on November 30, 2023, and the risk factors to be discussed in the Company’s Annual Report and elsewhere in the Company’s other reports and filings made with the U.S. Securities and Exchange Commission from time to time. Accordingly, you should not place undue reliance on forward-looking statements. The forward-looking statements speak only as of the date of this Form 8-K or as of the date such statements were made. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: March 12, 2024 | FALCON’S BEYOND GLOBAL, INC. | |
| By: | /s/ Bruce A. Brown | |
| Name: | Bruce A. Brown | |
| Title: | Executive Vice President of Legal, General Counsel and Corporate Secretary | |