TORONTO, March 25 /CNW/ - KNIGHTSCOVE MEDIA CORP (TSXV: KC / OTCQX:
KCMDF) ("Knightscove", "The Company" www.knightscove.com ), a leading Canadian
distributor of family - friendly entertainment, is pleased to announce that
its stated strategy of growth through the acquisition of corporate assets and
films library is being realized.
As reported on April 19, 2006, Knightscove (formerly Queen Street
Entertainment Capital Inc.) acquired three feature films; "Blizzard" starring
Brenda Blethyn, "Kart Racer" starring Randy Quaid and "Virginia's Run"
starring Gabriel Byrne. All of the films were produced by Knightscove's
President and CEO, Leif Bristow and have been released in Canada by Alliance
Atlantis, in the US by MGM and Sony and internationally by First Look Media.
To date, the films have generated net sales to Knightscove of 2.5x their
original purchase price. More than half of the value of these sales is still
to be recognized by the Company.
On May 18, 2007, Knightscove completed the acquisition of Morningstar
Entertainment Inc. ("Morningstar" www.morningstarent.com ), a Canadian-based
distributor of video and DVD titles established 15 years ago with a 1,400
title DVD library including the original "A Christmas Carol" starring Alistair
Sim, "Swiss Family Robinson", "Prince Caspian" and "Chronicles of Narnia" as
well as "Little Mosque on the Prairie - Season 1".
The Company filed its first audited consolidated financial statements for
the fiscal year ended August 31, 2007 and is now poised to realize the
exceptional synergies presented by this business combination. Management
expects DVD distribution to be the most consistent and quickest recognized
revenue stream from each title in the library. As a result, Morningstar
continues to acquire DVD distribution rights and is expected to launch its
operations into the United States over the course of this calendar year.
In keeping with the Company's stated business objective of growth of the
film library and its exploitation through all channels, Knightscove is
continuing discussions related to previously announced Letters of Intent for
two additional corporate acquisitions. These acquisitions complement the
existing distribution and production operations of Knightscove Family Films
and Morningstar and promote the integration of the Company's business model.
Management believes a significant portion of future revenue in the home
entertainment sector will be derived from the exploitation of titles through
new media technologies as well as on traditional DVDs, although at a lower
price point. The two potential acquisitions address these markets and have a
proven track record in their respective areas. The potential purchases are
subject to the approval and acceptance of the TSX Venture Exchange and
compliance with all applicable securities and regulatory laws.
"With Knightscove's recent capital reorganization, the Company has
structured a platform with more flexibility to pursue international equity
financings while continuing to adhere to the Canadian ownership requirements
of the Broadcasting Act (Canada) and retain the Company's status as a Canadian
corporation in the film industry," stated Leif Bristow, President and CEO of
Knightscove. "We have identified a number of potential strategic acquisitions
to further build and diversify the company's revenue streams as well as
enhance our distribution and development capabilities in order to realize our
long term growth objectives."
Knightscove Media Corp.
Knightscove Media Corp. is a fully integrated Canadian entertainment
company specializing in the distribution, creation and financing of high
quality live action feature films and television productions for the whole
family under its brand "Knightscove Family Films". Its goal is to serve as a
fully-integrated entertainment company to distribute and finance third party
and proprietary film and television product specifically for the family
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 on
www.OTCQX.com. The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
For further information:
For further information: Ali Mahdavi or Kevin O'Connor, Tel: (416)
962-3300, email@example.com or firstname.lastname@example.org; Knightscove Media Corp.,
Leif Bristow, President and CEO, (416) 444-7900 x222; Annette Grot, VP
Finance, (416) 444-7900 x231