SOURCE: Peace Arch Entertainment Group Inc.

June 08, 2007 16:01 ET

Peace Arch Entertainment Announces Closing of Private Placement of $33 Million to Fund Recently Announced Acquisition Agreements

TORONTO--(Marketwire - June 8, 2007) - Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE), an innovative film and television entertainment company, announced today that the Company has closed its previously announced private placement of common shares for gross proceeds of CAD$33 million. The offering was priced at $2.50 per share. The private placement is the latest validation of Peace Arch's high-growth business model focused on the acquisition of profitable assets in the entertainment industry to create a fully integrated entertainment company. Westwind Partners Inc. acted as the lead agent in the offering with a syndicate that included CIBC World Markets, Clarus Securities Inc. and Paradigm Capital Inc.

Certain proceeds from the offering will be used to purchase Trinity Home Entertainment, LLC, a leading DVD distributor located in Westlake Village, CA, as well as Dufferin Gate Productions Inc., Toronto's foremost provider of production services and facilities. The balance of the net proceeds will be allocated to reducing debt, general working capital purposes and in support of potential future acquisitions.

About Peace Arch Entertainment Group Inc.

Peace Arch Entertainment produces and acquires feature films, television and home entertainment content for distribution to worldwide markets. Peace Arch owns one of the largest libraries of top quality independent feature films in the world, featuring more than 500 classic and contemporary titles. Through its subsidiary, Peace Arch Home Entertainment, Peace Arch is also one of the leading distributors of DVDs and related products in Canada.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved the information contained herein. The closing of the transactions described herein is subject to the negotiation and execution of definitive documentation and the approval of the Toronto Stock Exchange and the American Stock Exchange.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact Information

  • Contacts:
    Roy Bodner
    Vice President Public Relations
    Peace Arch Entertainment
    (310) 776-7208
    Email Contact: Email Contact

    Or

    Financial Communications
    Trilogy Capital Partners
    Ryon Harms
    (800) 592-6067
    Email Contact: Email Contact