Knightscove Media Corp.

Knightscove Media Corp.

December 21, 2009 10:44 ET

Knightscove Media Corp. Completes $1 Million Senior Loan Facility for Acquisitions and Growth

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) - KNIGHTSCOVE MEDIA CORP. (TSX VENTURE:KC.A)(TSX VENTURE:KC.B)("Knightscove", "Company") is pleased to announce that is has completed a new senior lending facility for $1 Million to assist with general working capital and acquisition. The loan, which was subscribed for by Jones, Gable & Co Ltd. of Toronto, John D. Lane of Lane Capital Markets of Connecticut and New York (also a member of the Board) and Leif Bristow, Knightscove's President and CEO, is a two year loan rearing 12% interest paid quarterly. In addition, the Company has granted a 20% bonus ($200,000) in the way of shares at $0.15 per share, which are subject to a 120 day hold to the Lenders.

"I am very pleased with the confidence that Don Ross of Jones, Gable and John Lane have shown in Knightscove's strategic vision", said Leif Bristow, CEO & President. "We are now in a position to commence with our acquisition of Ellis Entertainment, which is targeted for closing on January 1st 2010. Once completed, Knightscove will be strategically placed to fully execute on its stated objectives with a completed and vertically integrated distribution pipeline. It includes television through its newly acquired US & Canadian VOD network, KIDMAZING (re-branded KnightTV), International sales and acquisitions through Ellis Entertainment, North American DVD and Home Product through Morningstar Entertainment and proven proprietary production capability through Knightscove Family Films and Ellis' Television division.

We are very enthusiastic as we bring the companies together for our 2010 plans. We are seeing a solid return in sales in Morningstar over the past three months with solid fall and seasonal sales. Ellis Entertainment has one fully commissioned documentary "Ancient Chinese Secrets" in production and is about to commence a new HD series on baby animals, tracking the birth and first six months of life of many of the African species. This series will be for Animal Planet and other International networks and will also be aired on our proprietary network KnightTV and distributed on DVD by our Home Products division, Morningstar Entertainment."

The Company intends to source other libraries and acquisition opportunities to enhance distribution revenue to maximize shareholder values.

Additional information regarding the business of Knightscove may be found on or SEDAR at

"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."

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