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

Knightscove Media Corp.

October 16, 2009 11:06 ET

Knightscove Media Corp Is Pleased to Update the Market on Its Intended Aquisition of Studio 4's Kidmazing Network

TORONTO, ONTARIO--(Marketwire - Oct. 16, 2009) - KNIGHTSCOVE MEDIA CORP (TSX VENTURE:KC.A)(TSX VENTURE:KC.B) ("Company", "Knightscove" www.knightscove.com ) previously announced that it had entered into a letter of intent (the "Agreement") to acquire Studio 4 Networks ("Studio 4"), a Los-Angeles-based broadband and video on-demand (VOD) broadcaster. Studio 4 operates three cable & satellite VOD channels and websites including Kidmazing, a children's programming network which currently provides family friendly programming to approximately 10.5 mil U. S. households. Economic conditions within the capital markets at the time precluded the companies from raising sufficient capital to complete the transaction as contemplated. However, Knightscove became a shareholder in Studio 4. The Company and Studio 4 have agreed on terms under which Knightscove will proceed to acquire 51% of Kidmazing, immediately (subject to regulatory approvals) and purchase the remaining 49% within 24 months.

Kidmazing which is carried in Cox, Charter Dish, Shaw AT&T and other VOD systems, is forecasted to reach over 15 million households by 2010. Studio 4 offers Kidmazing programming services across multiple platforms including cable, satellite and broadband. VOD is one of the fastest growing services among cable MSO's and has reached over 32 MM homes and is forecast to reach over 63 MM households by 2011. Broadband penetration among US households with internet access has surpassed 60% and is forecast to reach 70% next year with Plug and play technology and streaming video online.

"It has always been my belief that a 24 hour TV channel of movies and television series focused on family viewing would be quickly accepted throughout North America", said Leif Bristow, President & CEO. "Currently there is very little programming available to families and yet there is an enormous demand with most new channels either appearing to focus on sports or adult movies creating a large opening for us to succeed. With Kidmazing, Knightscove becomes an enviable North American distribution pipeline for producers from around the world with little access currently to North American airwaves. We will then be able to leverage this distribution channel to acquire international distribution rights and North American DVD/Ancillary rights to be fully managed by our subsidiary division, Morningstar which focuses on North American DVD sales and our soon to be completed international sales division Ellis Entertainment which we previously announced."

The terms for the transaction (subject to regulatory approval): For 51%, Knightscove previously paid approx $276,000 and will now issue 850,000 subordinate voting shares plus a $12,000 per month management service contract to Studio 4 for 2 years.

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

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

Contact Information

  • Knightscove Media Corp.
    Leif Bristow
    President
    (416) 444-7900 ext 222