Knightscove Media Secures Financing to Complete Acquisition of Original and Library HD Programming Firm FDR Media Group Inc.
October 27 2011 - 11:27AM
Marketwired
KNIGHTSCOVE MEDIA CORP. (TSX VENTURE:KC.A)(TSX VENTURE:KC.B)
(www.knightscove.com) ("Knightscove"), a leading Canadian
distributor of family entertainment, announced today that it has
secured financing in the amount of $1,000,000 (the "Loan") needed
towards the completion of the acquisition of fifty-one percent
(51%) of Toronto-based FDR Media Group Inc. ("FDR Media Group"), a
Canadian diversity-focused media company, broadcasting original and
library HD programming in both Hindi and English (the
"Acquisition"). Knightscove previously announced its intention to
acquire FDR Media Group in a press release dated August 2, 2011.
The transaction is subject to formal regulatory approval from both
the CRTC and the TSX Venture Exchange (the "TSXV").
The financing has been obtained through a loan agreement with
2301927 Ontario Inc. The proceeds will further Knightscove's
acquisition of FDR Media Group and will assist FDR Media Group in
its launch on Bell Fibe TV in November 2011 as indicated in its
press release dated October 24, 2011.
A major shareholder of 2301927 Ontario Inc. is Vasdev Chanchlani
("Mr. Chanchlani"), a private investor and philanthropist. Mr.
Chanchlani is the recipient of multiple awards including being
named one of the Top 25 Canadian Immigrants in 2010 by Canadian
Immigrant Magazine. Mr. Chanchlani is also the founder of the
Chanchlani Foundation, an organization dedicated to promoting
relations between Canada and India and strengthening the
Indo-Canadian community.
The Loan bears interest at a rate of 10% per year payable
monthly in cash or, at Mr. Chanchlani's discretion and subject to
TSXV approval, in subordinate voting shares, and matures on
December 15, 2012. In addition, and subject to TSXV approval,
Knightscove has granted to Mr. Chanchlani, a two percent lending
fee and a bonus fee in the amount of $200,000 payable through the
issuance of 2,415,000 subordinate voting shares and 585,000
multiple voting shares in the capital of Knightscove, all at a
price per subordinate voting share and multiple voting share equal
to approximately $0.066. Further to the above, Knightscove and some
of its subsidiaries are providing additional guarantees for the
Loan.
The Acquisition of FDR Media Group follows the recent
acquisition by Knightscove of the Ellis Entertainment library. The
purchase of the Ellis Entertainment library added significant
programming assets to Knightscove, particularly Ellis's extensive
collection of award-winning productions. More than 600 titles will
be made available to FDR Media Group, including the evergreen
genres of wildlife, children's, and history programming.
Harris Brown & Partners Limited ("Harris Brown"), a
Toronto-based Corporate Finance firm, acted as an advisor to
Knightscove and FDR Media Group for the Acquisition, and is
currently acting as Knightscove's financial advisor for its
continued financial offerings.
The TSXV has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release or the information
contained herein.
About Knightscove Media Corp.
Knightscove is a fully integrated entertainment company
specializing in the distribution, creation and financing of live
action feature films and television productions. The Canadian
company offers family-friendly third party and proprietary film and
television content through its Knightscove Family Films brand.
Contacts: Knightscove Media/Knightscove Corporate: Leif Bristow
President and CEO
416.444.7900info@knightscove.comwww.knightscove.com
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