FRV Média Inc.

FRV Média Inc.

May 31, 2006 15:56 ET

FRV Media Obtains $750,000 to Acquire Rights and Develop Subsidiary Delphis Films

MONTREAL, QUEBEC--(CCNMatthews - May 31, 2006) - Shareholders of FRV MEDIA Inc. ("FRV Media" or the "Company") (TSX VENTURE:FRV) have subscribed for $750,000 of debentures. The Company will use the proceeds to develop its distribution subsidiary, Delphis Films, more specifically, to acquire rights for its library.

The subscribers are the Fonds de Solidarite FTQ ($500,000) and Fondaction CSN ($250,000), under an agreement signed November 4, 2004. The agreement provides for them to subscribe up to $3 million in convertible debentures at FRV Media's request for the development of Delphis Films.

In accordance with this agreement, the debentures will be redeemable on the fifth anniversary of their issue and convertible by the holders as of September 1, 2009 at the average closing price for 20 consecutive days of trading prior to the conversion minus the maximum discount allowed by the Stock Exchange Policies, the conversion rate being no lower than $0.50. The debentures will bear interest at a rate of 10% per year. The interest will be capitalized during the first 24 months following the issue of each debenture and payable on a quarterly basis thereafter.

After this issue-the first under this agreement-$2.25 million will remain available for the expansion of Delphis Films. The deadline for the debenture issue under the agreement is November 4, 2007.


This press release contains forward-looking statements reflecting the objectives, estimates and expectations of FRV. These statements are identified by the use of verbs such as "believe," "anticipate," "estimate" and "expect" as well as the use of the future or conditional tense. By their very nature, these types of statements involve risk and uncertainty. Consequently, results could differ materially from the Company's projections or expectations. For information on the nature of the risk factors not specifically mentioned in this press release, the reader can consult FRV'S annual report for the fiscal year ended March 31, 2005, under the heading "Risks and Uncertainties," page 18.


FRV Media Inc. is a producer, exporter and integrator of quality content deployed across multiple platforms: television, cinema, multimedia and publishing. Through its wholly owned subsidiaries Cite-Amerique, Altau TuttiFrutti and Delphis Films (formerly FRV Media International), the Company creates and distributes dramatic content (TV series, made-for-TV movies and feature films), youth and children's programs, documentaries, sitcoms and magazine shows. It is also involved in dubbing and event coverage and recording.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • FRV Media Inc.
    Alain Dufour
    Vice-President and Chief Financial Officer
    (514) 843-3355