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News Release
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YALETOWN ENTERTAINMENT CORP. 407 - 535 Howe Street, Vancouver, B. C. V6C 2Z4 Tel: (604) 688-0118 Fax: (604) 688-3348 CUSIP# 984909101 Rule 12g3-2(b)# 82-4336 |
May 1, 1995 A.S.E Trading Symbol: YAL
Yaletown Entertainment Corp. (the "Corporation") announces that its common shares will be listed for trading on the Alberta Stock Exchange on May 2, 1995. It also announces that it has entered into a Letter of Intent with Yaletown Productions Inc. ("YPI"), a private British Columbia company, for the purchase of certain rights in movie and television assets (the "Yaletown Assets"). The purchase price for the Yaletown assets is $360,000 payable by the issuance of 1,200,000 common shares of the Corporation to YPI at a deemed price of $0.30 per share. Pursuant to the terms of the letter of intent, the Corporation must also contribute a total of $300,000 towards the production budgets of Urban Safari and Journeys of Discovery (as described below).
The Yaletown Assets are comprised of the following:
1. A 50% interest in Urban Safari, a full length feature film which has completed shooting and is presently in the final stages of post production. This is a joint venture project between Yaletown Productions Inc. and Full Circle Films AG of Zurich, Switzerland. The budget for this film is approximately $2,000,000. Pre-sales for Urban Safari are as follows:
All Canadian rights: $150,000
Swiss television rights: SF 200,000 (approx. $240,000 Cdn)
German television rights: DM 300,000 (approx. $302,250 Cdn)
2. A 100% interest in Journeys of Discovery, a television series of one hour documentaries of expeditions to ecologically sensitive locations around the world. Filming of the series will be done by film crews on expeditions organized by a specialty adventure travel company. Filming of the pilot documentary was completed in Belize, Central America in January, 1995.
3. A 100% interest in Curse of the Lost Gold Mine, the pilot to a television series of 13 one hour docu-dramas entitled Legends, Mysteries and Lost Treasures ("Legends"), in addition to all the rights to produce the remaining episodes of the series. Curse of the Lost Gold Mine has already been produced by YPI and was aired in prime time across Canada on the Global Television Network in July, 1994. In addition, home video rights to Curse of the Lost Gold Mine have been sold on a royalty basis to a major video distributor.
This is a non-arm's length transaction in that Michael J. Collier is the President of the Corporation and is also the Chief Executive Officer, a director and, indirectly, the sole shareholder of YPI.
The Corporation also announces its intention to complete a private placement of up to 2,000,000 special warrants at $0.20 per special warrant for gross proceeds of $400,000. Each special warrant shall consist of one share and one share purchase warrant, with each share purchase warrant entitling the holder to purchase one common share of the Corporation at a price of $0.20 per share. Completion of this private placement is subject to, and will close within 30 days following, the acquisition of the Yaletown Assets.
The Corporation further announces the appointment of Robert J. Turner to the Board of Directors. Mr. Turner is a management and business consultant with over 26 years of experience consulting to industry.
The Corporation is a Junior Capital Pool Corporation and the acquisition of the Yaletown Assets is intended to constitute its Major Transaction pursuant to Policy 4.11 of the Alberta securities Commission and Circular No. 7 of the Alberta Stock Exchange. As such, the transaction is subject to the approval of the Alberta Stock Exchange and the Corporation's shareholders.
For further information, please contact Mr. John Cumming, Chief Executive Officer at (604) 688-0118.
John C. R. Cumming,
Director, Chairman & C.E.O.
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.
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Yaletown Entertainment Corporation, Vancouver B.C. Canada
tel: (604) 669-3543 - Executive/Production Offices
Canadian Venture Exchange: ECY