SOURCE: Peace Arch Entertainment Group Inc.

January 19, 2008 16:10 ET

Peace Arch Entertainment Announces Financing Agreement With Key Shareholders

TORONTO--(Marketwire - January 19, 2008) - Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE) (the "Company"), an integrated global entertainment company creating and acquiring critically acclaimed film, television and DVD content for worldwide distribution, announced today that Jeff Sagansky, CEO, Co-Chairman of the Board of Directors and a shareholder of the Company, and Drew Craig, Co-Chairman of the Board of Directors and a shareholder of the Company, have agreed to make loans to the Company in the aggregate amount of $2.65 Million to be used by the Company for general corporate purposes.

"While Peace Arch works to finalize its 2007 financial statements and arrange long term financing for its proposed acquisition of Contentfilm, the Company continues to acquire and exploit new programming to fuel future growth," said Mr. Sagansky. "Drew and I are pleased to be able to support the Company's continued expansion during this transitional period, and we continue to be very excited about the Company's prospects for the future."

The bridge loans will bear interest at the rate of 12% per annum. The bridge loans are repayable by the Company within one year from the time the loans are made. The loans may be repaid in advance without penalty at the option of the Company. No fees or points are payable by the Company in respect of the bridge loans.

Because of the relationships Mr. Sagansky and Mr. Craig have with the Company, the bridge loans are considered to be related party transactions under applicable securities laws. The Company has relied upon exemptions in respect of the formal valuation and minority shareholder approval requirements that are available under applicable securities laws. In accordance with applicable laws, the Company's independent directors have approved the bridge loans.

The Company will file a material change report relating to the bridge loans less than 21 days before the advance date to ensure the Company can have access to the funding in a timely manner.

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 1,000 classic and contemporary titles. For additional information, please visit www.peacearch.com. For more investor-oriented information about Peace Arch Entertainment, visit http://www.trilogy-capital.com/tcp/peace-arch/. For current stock price quotes and news, visit http://www.trilogy-capital.com/tcp/peace-arch/quote.html. To view an Investor Fact Sheet, visit http://www.trilogy-capital.com/tcp/peace-arch/factsheet.html. To read a transcript of a recent Peace Arch investor conference call or listen to an archived recording, please visit http://www.trilogy-capital.com/tcp/peace-arch/conference.html.

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

  • Contact:

    Roy Bodner
    Senior Vice President
    Marketing and Communications
    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