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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 |
February 16, 1996 A.S.E Trading Symbol: YAL
MAJOR TRANSACTION COMPLETED
Yaletown Entertainment Corp. (the "Corporation") announces that its major transaction has received final regulatory approval. Effective February16, 1996 the Corporation will cease to be designated as a junior capital pool.
The Corporation's Major Transaction was the purchase of certain rights in movie and television assets (the "Yaletown Assets") from Yaletown Productions Inc. ("YPI"), a private British Columbia company,. The purchase price for the Yaletown assets was $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 acquisition agreement, 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:
- A 50% interest in Urban Safari, a full length feature film which is fully completed and is presently in distribution. Urban Safari was a joint venture project between YPI. and Full Circle Films AG of Zurich, Switzerland. The budget for this film was approximately C$2,000,000. Sales to date of Urban Safari aggregate approximately C$800,000.
- 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 organised by a specialty adventure travel company. Filming of the pilot documentary, Belize, From Reef to Rainforest, was completed in Belize, Central America in January, 1995.
- 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 was aired in prime time across Canada on the Global Television Network in July, 1994.
PRIVATE PLACEMENT
The Corporation also announces that it has completed a private placement of 2,000,000 units at $0.20 per unit for gross proceeds of $400,000. Each unit shall consist of one share and one two year 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. A finder's fee of $37,500 will be paid in respect of this placement.
STOCK OPTIONS
The Corporation also announces that it has granted 330,000 incentive stock options to two directors, John C. R. Cumming as to 170,000 options and W. James Woolsey as to 160,000 options. The options are exercisable at C$0.30 per share and expire December 13, 2000.
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