Techlabs and Yaletown Capital Join Forces to Supply High-Margin Funding to Cash-Starved Independent Film Market - Receivables are Government-Backed Paper
Wednesday November 14, 4:30 pm ET
NORTH SHORE STUDIOS, British Columbia & JENSEN BEACH, Fla.--(BUSINESS WIRE)--Yaletown Capital Inc. and Techlabs Inc. (Pink Sheets:TCHL - News) jointly announced today that after an intensive and successful due diligence process, Techlabs, through a new subsidiary named Techlabs Entertainment, has agreed to fund Yaletown Capital as it begins servicing what management believes will become a $40 million per-year business over five years (based on deployed capital). The companies have signed an acquisition and funding agreement whereby Techlabs has acquired 51% of Yaletown in return for financial consideration, professional services and corporate administrative expertise. This arrangement provides Yaletown with valuable internal resources and allows Techlabs to leverage its Spanish speaking expertise to assist Yaletown in expanding into the Hispanic market; a significant demographic.
Mr. Randy Cheveldave, President and CEO of Yaletown Capital Inc., said today, “This much anticipated news is outstanding in that increased financial power allows Yaletown to profitably service a greater number of productions while sending a clear message to stakeholders that the Company is proceeding quickly to expand its business. As importantly, it blazes a path for smaller independent film and television producers to access important funding, production and distribution services, either a la carte or bundled together – something they have not had the ability to do unless backed by a major studio. This can save time, reduce costs and result in more pictures actually being made – something that distributors and broadcasters are screaming for. Having spent 32 years in the film business, I can tell you that as more and more silver screens, pay channels, cable channels, video distribution outlets and internet portals open up, this type of independent and digital production will continue to grow at a rapid pace. The fact that this market is Yaletown’s focus and core business is not a coincidence. We have taken all of our combined experience and designed our company to efficiently service a demand where, in recent years, hundreds of millions of dollars have been deployed.”
Yaletown’s management further notes that this action multiplies Yaletown’s financial strength and gives it the ability to make top-up funding commitments to its Film and TV Producer customers in return for their assignment of Government-backed tax-credits to Yaletown. The Company now expects to be in a position to service multiple productions simultaneously while opening up additional profit centers such as production services, corporate completion guarantees, and foreign distribution; all of which drive substantial annual rates of return. Efficiencies created here also advance producers’ cost savings tool-set and provide for the possibility of reduced rates for insurance coverage.
About Yaletown Capital Inc.
Yaletown is focused on the financing, production and distribution of independent and digital film and television. Guided by experienced film and television producers, its business is comprised of four elements: 1. Provision of production financing to producers of independent film and television in return for assignment of Government tax-credits (similar to H&R Block). 2. Provision of production services and administrative assistance. 3. Provision of corporate guarantees of completion for producers who require this facility in order to lock-in project funding. 4. Provision of foreign distribution assistance or direct representation.
About Techlabs, Inc.
Techlabs is a developer of emerging businesses, with a particular focus on opportunities in the Hispanic markets, including the Caribbean basin and South America. Most notable is the development of all-inclusive Caribbean resort properties and related “fantasy island” vacation packages. The company also provides business development services and consulting to companies wishing to do business in Spanish speaking markets.
For further information, visit Yaletown on the Web at: www.yaletowncapital.com
SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward- looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future", "plan" or "planned", "will" or "should", "expected", "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that our products may not achieve customer acceptance or that they will not perform as expected, that customer trials will not lead to future sales, and other risks identified in our annual report on Form 10-K and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and Techlabs Inc. & Yaletown Capital Inc. undertake no obligation to update such statements.
Contact:
Yaletown Capital, North Shore Studios
Randy Cheveldave, 604-983-5669
rcheveldave@yaletowncapital.com
Source: Techlabs Inc.
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