Growth Investment Opportunity in Immersive Cinema Technology

WHITEFISH, MT / ACCESSWIRE / May 27, 2015 / With so many ways to consume movies at home, movie theaters are looking to attract business and maintain the bottom line by creating luxurious, immersive and customer-centric experiences at the cinema. In 2014 about 1.26 billion people went out to a movie, marking the lowest attendance figure since 1995. Yearly movie attendance can fluctuate wildly depending on the strength of that year's blockbuster offerings, and the general outlook for 2015 is rosier. Still, the movie theater industry is looking for ways to put more people in the seats and increase profits.

IMAX Corporation (NYSE: IMAX) was an early innovator with large screens and advanced sound systems. Other chains have been developing offerings along similar lines lately. Regal Entertainment Group (NYSE: RGC), the largest chain in the United States, offers RPX(R) (Regal Premium Experience) theaters, featuring larger screens, state-of-the-art sound and projection systems as well as luxurious recliner seating. AMC Entertainment Holdings (NYSE: AMC), whose AMC Theatres comprise the U.S.'s second largest chain, similarly offer the "Dolby Theater at AMC Prime" theatres, utilizing Dolby Laboratories (NYSE: DLB) new Dolby Cinema(TM) system to add to the immersive experience. These are some of the bigger players in the industry, but investors looking for high growth opportunities might want to look at one of the smaller technology providers that is changing the way movies are presented.

The Guitammer Company Inc.

The Guitammer Company (OTC: GTMM) makes ButtKicker(R) brand low frequency audio transducers that transmit the feel of movies to the viewer by vibrating the seat in perfect synchronicity with the soundtrack. Explosions, rumbles and impacts come to life by adding the tactile sense (sense of touch) to the immersive cinema experience. These transducers are part of all of AMC's Prime offerings (installed in all 10 theatres so far), and the company along with Regal recently announced the initial installation of ButtKicker units in Regal's newest RPX theater. For a company with a very small market cap, cutting deals with the nation's two largest chains could have a very large impact.

Additionally, Guitammer and RealD Inc. (NYSE: RLD) recently partnered with Warner Brothers (a segment of Time Warner Inc. (NYSE: TWX)) to outfit three high tech Cinetransformer mobile movie units. Basically, these are mobile movie theaters being driven around the U.S., Mexico and Europe promoting the upcoming earthquake blockbuster San Andreas. Step inside and people can view six minutes of the film in 4D, utilizing RealD 3D technology and feeling the earth move and quake as each and every seat is outfitted with a ButtKicker transducer.

Guitammer is in an interesting position that goes far beyond, but could be fed by, its growing cinema presence, as it has patented the technology to capture and broadcast, live and in real time, tactile-haptic data that allows the feel and impact of live sporting events to be delivered right to the consumer's living room.

To that end, Guitammer and the San Jose Sharks partnered with Comcast SportsNet Bay Area to broadcast 2014-2015 Sharks home games in '4D', delivering tactile data gathered from sensors in the boards of the arena directly to viewers at home. When the big hits happened on the ice, viewers at home could feel them on their couch. Fans and players alike reacted very positively. This pilot bears watching as Guitammer looks to capitalize on its plan to broadcast and to standardize this live tactile-haptic information in much the same way that Dolby has standardized the transmission of surround sound.

Guitammer's revenue is trending upward, with the company's Q1 2015 showing a 70% increase in revenues compared to Q1 2014. If the recent cinema deals are any indication, this trend could continue and make the company's current ~$9M market pale in comparison to what it could be. Of course, if Guitammer's plan to standardize the broadcast of tactile data - to 'own the pipe' and create a hardware-agnostic licensing stream of revenue - comes to fruition and meets broader market acceptance, early stage investors could be extremely grateful for having found this opportunity when they did.

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Disclaimer:

Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx.


SOURCE:
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