Knightscove Media Corp.
TSX VENTURE : KC.A
TSX VENTURE : KC.B

Knightscove Media Corp.

December 08, 2009 09:30 ET

Knightscove Media Corp. Acquires 51% of U.S. VOD Network KIDMAZING

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2009) - KNIGHTSCOVE MEDIA CORP. (TSX VENTURE:KC.A)(TSX VENTURE:KC.B) ("Knightscove", "Company") is pleased to announce that it has now completed it's acquisition of Studio 4 Networks Inc.'s ("Studio 4") KIDMAZING NETWORK ("KIDMAZING"). Currently, KIDMAZING, which specializes in pre-k and children's programming on pay television operators COX, CHARTER, DISH, AT&T, SHAW and others has been ranked as high as 18 out of 157 VOD channels based on viewership. The channel is available in approximately 10 million video-on-demand households in the US and Canada.

"Today, with our acquisition, Knightscove becomes an owner of one of North America's only cross border TV properties," said Leif Bristow, President of Knightscove. "And with our focus on family entertainment we become attractive to advertisers which face increasing difficulty trying to reach the family market, which is the largest viewing constituency. Producers around the world are continuously faced with the problem that without US exposure it's difficult to maximize their show's international revenues. We intend to become the leading Family Network of choice both for creators and viewers with a solid mix of family movies, TV series and edutainment for the entire family."

Knightscove's board of directors and management team have been focused on creating a full distribution platform which allows the vertical integration of multiple distribution streams. KIDMAZING becomes the main driver in the business for the following reasons: Owning a US and Canadian property enables Knightscove to capture a combination of subscriber fees, advertising revenue and PPV download fees. Through the company's proprietary library of programs, which will be in excess of 600 titles upon the completion of the Ellis Entertainment acquisition, Knightscove will be able to supply programs with limited additional licensing fees and through their North American home products division, Morningstar Entertainment, drive North American DVD rentals and sales.

KIDMAZING is expected to increase its distribution to over 15 million in the first quarter, growing to approximately 25-30 million over the next 18 months, in major part due to the increased reach of its distribution partners (in context YTV in Canada has approximately 3.5 million linear households and Nickelodeon's The N Channel in the US has approximately 35 million linear households). KIDMAZING and the soon to be launched Knight TV will provide full VOD packages of pre-k, Big Kids and tween programming over the coming months. A linear television launch will follow in the latter half of 2010.

The purchase price for the 51% of KIDMAZING is as follows: CDN $270,000 in cash which has been paid (not CDN$276,000 as was stated in our October 16, 2009 press release) and the issuance of 850,000 subordinate voting shares. The remaining 49% will be purchased in 24 months by Knightscove, at it's option, for either USD$1 million or, subject to TSXV approval, USD$1 million in stock, less the permitted discount by the exchange.

Knightscove is also pleased that, by way of separate agreements, they have retained Studio 4's founder Ed Stansfield and principal Colin Philips, as ongoing consultants to assist in the continued growth of KIDMAZING and the launch of Knight TV.

"Knightscove is well-positioned to take KIDMAZING to the next level," said Ed Stansfield, Studio 4's founder and CEO. "With its library of family-friendly programming and extensive production experience, Knightscove is the ideal home for KIDMAZING's distribution assets. We're looking forward to our continued involvement over the next 2 years to continue to expand distribution of KIDMAZING and the new KnightTV channels on VOD and linear platforms."

Additional information regarding the business of Knightscove may be found on www.knightscove.com or SEDAR at www.sedar.com.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Knightscove Media Corp.
    Leif Bristow
    President
    (416) 444-7900 ext 222
    Website: www.knightscove.com