SOURCE: Peace Arch Entertainment Group Inc.

June 05, 2007 03:30 ET

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

Placement Further Validates Company's High-Growth Business Model Focused on Acquisition of Profitable Assets in Entertainment Industry

TORONTO--(Marketwire - June 5, 2007) - Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE), an innovative film and television entertainment company, announced today that the Company will receive CAD$33 million in a private placement move forward on two previously announced milestone acquisitions and reduce debt. 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.

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 proceeds will be allocated to reducing debt, general working capital and potential future acquisitions.

"We are very pleased to announce that Peace Arch is now fully funded to move forward on our current as well as future acquisitions," said Gary Howsam, Chief Executive Officer of Peace Arch Entertainment. "Peace Arch has entered a new period of growth that we believe will continue well into the future. We are excited about the private placement and the quality of our investors and shareholders. We plan to utilize the funds to continue building shareholder value."

Peace Arch successfully priced its previously announced private placement offering through its agent at CAD$2.50 per common share, raising total proceeds of CAD$33 million for the Company's strategic acquisition initiatives. The financing is subject to regulatory approvals and completion of definitive documentation and is expected to close on or about June 8, 2007.

Trinity Home Entertainment, LLC has well established distribution relationships with the Army and Air Force Exchange Service, along with major retailers such as Wal-Mart Stores and Trans World Entertainment, two of the largest video retailers in the United States. Genius Entertainment and Hearst Entertainment are among Trinity's key content suppliers.

Dufferin Gate Productions Inc. has furnished production services on more than 150 cable movies, television series and feature films for such studios as Showtime Networks, Paramount Pictures, Viacom Productions, Columbia/TriStar and Peace Arch, including such notable productions as the recent Showtime/Peace Arch collaboration "The Tudors."

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.

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Contact Information

  • Contact:

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

    Or

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