check out PAE news this morning...expecting this to go much higher.
Peace Arch(R) Entertainment Completes Milestone Acquisition of Castle Hill Productions and Dream LLC Film Companies
6:30a ET December 29, 2006 (Market Wire)
Peace Arch(R) Entertainment Group Inc. (AMEX: PAE) (TSX: PAE), an innovative film and television entertainment company, has completed the acquisition of independent film companies Castle Hill Productions and Dream LLC in a key strategic transaction highlighted by inclusion of one of the world's largest independent libraries of award-winning classic and modern motion pictures.
The acquisition of Dream/CHP, along with certain of their affiliated companies, also brings to Peace Arch a proven U.S. distribution and licensing operation and an experienced executive team.
The Dream/CHP library of 500 film titles represents one of the largest independent film libraries in the world, containing both classic as well as more contemporary motion pictures that Peace Arch will use to build revenue growth through U.S. and worldwide distribution.
Also under the transaction, Dream/CHP President Mark Balsam will join Peace Arch as head of U.S. distribution to bolster Peace Arch's existing U.S. distribution operations.
"The addition of these assets should greatly increase Peace Arch's revenue base, bring critical mass to our worldwide sales operation, enhance our existing library value and provide a steady source of future earnings and cash flow," said Gary Howsam, Chief Executive Officer of Peace Arch Entertainment. "We also believe that the addition of accomplished entertainment industry veteran Mark Balsam will enhance all of these new opportunities."
The purchase was a combined cash and stock transaction valued at approximately USD$9.5 million inclusive of closing costs. The transaction comprised approximately 10% stock and 90% cash. The cash component was satisfied via credit facilities provided by Imperial Capital Bank Entertainment Finance and Canadian Imperial Bank of Commerce.
"Peace Arch has now gained some very significant assets that we believe will add substantial value for our company and our shareholders," added Mr. Howsam. "Included in those assets is a proven North American sales operation, greater management depth and a film library with considerable rights available for immediate licensing through our existing Canadian and international distribution operations. All of these assets provide significant support to our developing internet distribution activities."
Among the many award-winning and classic film titles in the Castle Hill/Dream libraries are "Glengarry Glen Ross," The Marx Brothers' "A Night In Casablanca," Bruce Bereford's "Breaker Morant," John Sayle's "Matewan," and two Jack Nicholson-starring films, "The Shooting" and "Ride In The Whirlwind." Additionally, the extensive library includes Academy Award(R)-winning films, "Get Out Your Handkerchiefs" and "The Official Story."
