Knightscove Media Corp.

Knightscove Media Corp.

January 13, 2011 09:30 ET

Knightscove Media Corp. Completes Acquisition of Ellis Entertainment Corporation

TORONTO, ONTARIO--(Marketwire - Jan. 13, 2011) - KNIGHTSCOVE MEDIA CORP. (TSX VENTURE:KC.A)(TSX VENTURE:KC.B) ("Knightscove", "The Company", a leading Canadian distributor of family friendly entertainment, is pleased to announce the closing of its deal to bring distinguished TV distributor and producer, Ellis Entertainment Corporation ("Ellis Entertainment"), into the Knightscove family (the "Ellis Acquisition").

Knightscove previously announced on January 6, 2010 that it intended to acquire the assets of Ellis Entertainment (the "Ellis Assets") for $2,820,000.00 payable in both cash and through the issuance of both subordinate and multiple voting shares in the capital of Knightscove. Together with all additional costs, the total purchase price to have been paid for the Ellis Assets by Knightscove under the original agreement would have amounted to approximately $4,600,000. Given general economic market conditions and the rapidly-changing audiovisual content marketplace over the past 18 months, Knightscove instead determined that it was in the best interests of the Company and its shareholders to complete the Ellis Acquisition and obtain the Ellis Assets through the purchase of the company's senior debt and used this position to acquire all of the assets of Ellis Entertainment. As a result, Knightscove has now effectively completed the Ellis Acquisition at a cost of approximately $600,000.00 payable in cash thus providing significant enhancement to current shareholder value as an additional asset, free and clear of encumbrances and now within an infrastructure with reduced G&A in order to maximize future profits.

The centerpiece of the Ellis Acquisition is the extensive copyright library of hundreds of award-winning productions created by Ellis Entertainment over its 47 years of existence, primarily in the evergreen genres of wildlife, children's and history programming. Shareholders will benefit immensely from the company's ability to leverage content more effectively throughout the divisions. The Ellis Entertainment content will provide significant programming at no cost to the KnightTV division and can also become exceptional DVD product for the DVD division, Knightscove @Home.

Featured within Ellis Entertainment's 600-title catalogue is the long-running "Profiles of Nature" series, produced over 20 years and broadcast in over 120 countries in many languages, and the recently delivered "Mysterious Ruins", a ground-breaking documentary based on Canadian best-seller The Island of Seven Cities.

From one of Canada's highest-rated family series, "Adventures in Rainbow Country", to the multi-award-winning "Baby Human", to over 50 church renovations featured in lifestyle series "Divine Restoration", Ellis Entertainment's father and son team of Ralph and Stephen Ellis have worked for decades with network groups in Canada and around the world, including CTVglobemedia, Discovery Communications and Shaw Media to entertain and inform family audiences everywhere.

"Last year we laid the groundwork for the necessary growth to be a leader in the international distribution and creation of family friendly content", says Leif Bristow, Knightscove's President & CEO. "We're very pleased to be kicking off 2011 by cutting the ribbon on the television arm of this strategy and look forward to building on the remarkable Ellis Entertainment tradition through the newly created Knightscove – Ellis International division. We believe it is important to capitalize on the exceptional name recognition of Ellis Entertainment throughout the industry and have incorporated the name into our branding strategy."

Knightscove is equally excited that Stephen Ellis will be joining the Knightscove team as an Executive Vice President and will help exploit the growing catalogue of content, oversee the TV content creation for factual and documentary programs and will work with Leif Bristow to administer the long form dramatic content. Company founder Ralph Ellis has agreed to serve as a consultant to Knightscove for the next 2 years. As a pioneer of the Canadian Industry, a unique visionary in the development of new television channels and a Member of the Order of Canada and the Order of Ontario, his advice and wisdom will be helpful to Knightscove's plans for new territories in this rapidly changing technological time.

"More than ever this combination provides the ability to both expand the exploitation of the Ellis Entertainment library onto the many new media platforms that have arrived, and enhance profitability within a group that has a rapidly growing stake in production, distribution and exhibition," says Stephen Ellis, who has presided over the company for 25 years. 

This transaction is subject to any necessary approval and acceptance of the TSX Venture Exchange and any necessary compliance with all applicable security laws, all required governmental, judicial, regulatory and third-party approvals. 

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

Contact Information

  • Knightscove Media Corp.
    Leif Bristow
    President and CEO
    (416) 444-7900 x222