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DEVINE ENTERTAINMENT PURSUES NEW LIMITED PARTNERSHIP FINANCING
Proceeds to finance production, marketing and distribution activities and settle outstanding debt obligations
TORONTO, Ontario – January 05, 2006 — Devine Entertainment Corporation (CUB:DVNN, NASD OTC PK:DVNNF) today announced its intention to pursue a new limited partnership financing with the Devine Entertainment Film Library Limited Partnership. The proposed Limited Partnership financing for a minimum of 200 and a maximum of 401, $25,000 limited partnership units is expected to raise between $5,000,000 and $10,025,000 (all figures in Canadian dollars).
The Devine Entertainment Film Library Limited Partnership is a limited partnership formed and registered under the Limited Partnerships Act (Ontario) on March 8, 2004. The initial limited partner is William Thomson. The General Partner, Devine Entertainment Film Library GP Inc., was incorporated under the laws of Canada on March 2, 2004. William Thomson is the sole officer and director of the General Partner. The Limited Partnership has acquired Devine Entertainment Corporation’s interest in a defined part of the Company’s proprietary film library for $6.8 million, as valued by an outside valuator. The Company has provided financing for the transaction, and has entered into a financing agreement and will enter into a management agreement with the Limited Partnership in order to manage the exploitation and expand the distribution of the properties. Under these agreements the Company will receive management fees and interest revenue and the Company will maintain a call right for between a minimum of 70% and a maximum 100% interest in the library assets.
Devine Entertainment completed a smaller limited partnership financing at the end of 2004 and as noted at that time, plans to continue pursuing additional Limited Partnership financings as part of strategy to capitalize the Company and grow. David Devine, president and C.E.O. noted: “We are very pleased to be working on this promising financing with Bill Thomson. As a part of a larger effort to bring new working capital into the Company, the proceeds of this financing will allow the Company to ensure its ongoing production slate, increase the titles in our library, invest in the marketing and distribution of the library and work towards settling the balance of its outstanding debt obligations.”
Since 1978, Mr. Thomson has been President of Thomson Associates Inc., a solutions provider to businesses encountering change. Mr. Thomson holds a number of public and private directorships in growth and industrial enterprises. He is the Vice-Chairman and a director of YTW Growth Capital Management Corporation, a professional management services company recently formed to establish and help manage capital pool companies under the TSX Venture Exchange program. He holds a Bachelor of Commerce Degree from Dalhousie University and is a Chartered Accountant.
Five-time Emmy Award-winning Devine Entertainment Corporation develops, produces and distributes children’s and family entertainment for the theatrical motion picture, television and Video/DVD marketplace worldwide. Their film series on landmark Composers’, Inventors’ and Artists’ are critically acclaimed and broadcast in over 50 countries. The Company recently completed its first feature film for theatrical release, Bailey’s Billion$, which was released in North America on August 5, 2005 and is currently being distributed worldwide. Headquartered in Toronto, the Company's common shares trade under the symbol DVNN on the Canadian Unlisted Board (CUB) and on the NASD OTC PK market in the U.S. under the symbol DVNNF. The Company's corporate website is www.devine-ent.com .
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This press release may contain forward-looking statements relating to the future performance of Devine Entertainment Corporation. Forward-looking statements, specifically those concerning future performance and the achievement of operating profitability are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include the Company’s limited operating history and fluctuations in revenues; market acceptance of the Company’s products and services; competition within the film and entertainment industry and the introduction of new entrants and/or products in the Company’s markets; adverse changes in governmental regulations and policies affecting the film and entertainment industry; product development risks and risks of technological change; the risk of unanticipated expenses; and other risks and uncertainties all as described in the disclosure documents filed with securities regulatory authorities in accordance with applicable securities laws. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be given as to future results, levels of activity and achievements. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
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