First, readers should review our most recent update, published a week ago, on January 22nd. The short videos are well worth watching.
On Friday, the 26th, Falcon’s Beyond Global filed an 8-K, which reads as follows. We have boldfaced several key points.
“On January 18, 2024, Falcon’s Treehouse, LLC. a subsidiary of Falcon’s Beyond Global, Inc. and Qiddiya Investment Company (“QIC”) entered into a Consultancy Services Agreement, pursuant to which, among other things, Falcon’s Treehouse agreed to provide certain design, technological and construction services related to the design and development of one theme park.
“The Services Agreement was entered into in furtherance of the previously disclosed Strategic Investment between the Company’s Falcon’s Creative Group division and QIC and is one of several service agreements entered into with QIC related to the development of Qiddiya, as further described in the Company’s Registration Statement on Form S-1, as amended, filed with the U.S. Securities and Exchange Commission on November 30, 2023.
“The Services Agreement has a total contract value of up to approximately $83.1 million, consisting of approximately $64.6 million payable for normal routine design services and $18.5 million payable for additional services. Amounts payable under the Services Agreement will be paid in exchange for the services provided by Falcon’s Treehouse employees based upon agreed rates, with invoices submitted to QIC for its review, acceptance and payment within 60 days of receipt. The Services Agreement has an initial term of completion of 700 calendar days from February 7, 2024 (the “Commencement Date”), or until January 7, 2026, or a term of completion of 1,263 calendar days from the Commencement Date, or until July 24, 2027, if Falcon’s Treehouse is awarded additional services under the Services Agreement. The Services Agreement may be terminated at will by either Falcon’s Treehouse or QIC upon compliance with certain notice periods.”
Pending further elaboration by Falcon’s or QIC (wholly owned by the Kingdom of Saudi Arabia’s Public Investment Fund, who plans, over twenty years, to invest trillions to build the largest entertainment district in the world), the above release speaks for itself. Previously disclosed has been QIC’s $30M investment in Falcon’s Creative Group Division (for a 25% equity share). Also previously disclosed is the fact that at least five theme parks are within Falcon’s $755M line of sight consultancy agreements. It seems more than likely that the above announced agreement will followed by others of a similar nature.