Toronto’s Cambium Entertainment and management company MEG Entertainment of New Brunswick are finalizing a deal to build a large-scale animation facility in Fredericton, say well-placed sources.

meg senior vp John Hamilton did not return Playback’s phone calls to comment on the Cambium animation studio that will reportedly bring a significant amount of industry-related employment to the Atlantic region.

Sources say meg and Cambium are currently negotiating with the New Brunswick government due to the size of the deal and the number of jobs such a facility would mean for the province, estimated to be in the hundreds.

meg recently entered into a 50:50 joint venture agreement with Fireworks Entertainment to set up a Fredericton-based production company called Live Productions.

Out of that deal, Hamilton says meg will produce $10-million worth of projects this year and will build a sound studio in Fredericton complete with post-production facilities and an effects lab worth $1 million. The new animation studio will most likely be housed in the same facility.

Meanwhile, Cambium’s plan to go public through a merger with Vancouver video wholesaler/distributor TSC Shannock has overcome another hurdle, as the two companies have signed an agreement to go ahead with their proposed amalgamation.

As part of the merger, Shannock shareholders will receive one common share of the new company, to be called Cambium Entertainment Corporation, for one Class a share of Shannock. Shareholders of Cambium will receive one common share of the new company for each 1.324 common shares of Cambium.

Earlier, Shannock stated the deal was subject to Cambium issuing a private placement and raising not less than $2 million.

The completion of the merger remains subject to the consent of shareholders at a meeting to be held June 30 in Toronto. tse approval is also needed.