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

Knightscove Media Corp.

April 13, 2009 15:36 ET

Knightscove Media Corp Executes an LOI to Acquire Ellis Entertainment Corp Including 600 Title Catalogue

TORONTO, ONTARIO--(Marketwire - April 13, 2009) - KNIGHTSCOVE MEDIA CORP (TSX VENTURE:KC.A)(TSX VENTURE:KC.B) ("Knightscove", "The Company" www.knightscove.com), a leading Canadian distributor of family friendly entertainment, is pleased to announce that it has entered into a non-binding letter of intent to acquire the operations of Ellis Entertainment Corp., ("Ellis" www.ellisent.com) a Canadian based producer and distributor of television product to over 150 countries worldwide.

Ellis Entertainment, now in its 45th year, has built a solid international reputation in both the distribution and creation of award-winning family viewing across the spectrum from factual to dramatic entertainment series. Ellis owns worldwide copyright to a film library of approx 600 titles, including one of North America's most celebrated libraries of wildlife and nature programming. Additionally, Ellis brings a series of strategic alliances to this business combination. Ellis has supplied programming to and has long term relationships with the major public and private broadcast groups in Canada, including CTVglobemedia, CanWest MediaWorks and the CBC as well as major international groups such as Discovery Networks, US, the UK's ITV Network and ABC Australia. Ellis Entertainment also operates VisionTV International Inc., a joint venture with Canadian specialty broadcaster VisionTV.

This complementary acquisition will enhance Knightscove's existing operations and those of its wholly owned subsidiary, DVD distributor Morningstar Entertainment Inc. ("Morningstar" www.morningstarent.com). The Ellis catalogue is expected to be managed in the North American DVD Market by Morningstar. Morningstar's current library consists of approx 1,200 DVD titles including the original "A Christmas Carol" starring Alistair Sim, "Swiss Family Robinson" and BBC's "Chronicles of Narnia". Morningstar has launched its operations into the US market focusing heavily in family friendly content, which is the exclusive focus of the Ellis Library. Ellis will then be able to more rapidly increase its presence as an international distributor and continue to create proprietary content through its strategic partnerships.

"Our stated goal from the beginning has always been to build Knightscove as an international leader in the distribution and creation of family friendly content" says Leif Bristow, Knightscove's Pres. and CEO. "Having Ellis Entertainment and Stephen Ellis become part of this shared vision will demonstrate to the industry and our shareholders our commitment to growth through strategic business combinations. We believe that the synergies by working from the same offices will increase profitability and provide new and enhanced opportunities to increase overall revenues. We will also be better positioned to grow further through additional strategic acquisitions."

"This represents a tremendous opportunity to take the Company founded in 1964 by my father, Ralph, to the next level and position the group for growth", says Stephen Ellis, President & CEO of Ellis Entertainment. "We're very pleased to have found a vision of the future in common with Knightscove, matched by unparalleled strategic benefits."

The Letter of Intent contemplates a cash and stock purchase of Ellis shares including the copyright in Ellis' film library by Knightscove and remains subject to on-going negotiations. This transaction is subject to the approval and acceptance of the TSX Venture Exchange and compliance with all applicable securities laws, all required governmental, judicial, regulatory and third-party approvals. No finder's fee was paid in connection with this transaction.

To the extent that this press release contains forward-looking statements, investors are cautioned that these are based on the company's current views, and actual outcomes are not certain. Additional information may be found on www.knightscove.com, on SEDAR at www.sedar.com and at www.ellisent.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 & CEO
    (416) 444-7900 x222
    or
    Knightscove Media Corp.
    Annette Grot
    VP Finance
    (416) 444-7900 x231
    www.knightscove.com