Montreal: Vancouver-based Lions Gate Entertainment has entered into a ‘bought deal’ underwriting agreement for approximate aggregate proceeds of $25 million.

An underwriting syndicate led by Yorkton Securities and including First Marathon Securities and Merrill Lynch Canada has agreed to buy and sell 5,440,000 common shares at $4.60 per share.

The company says it has further optioned an additional 15% over-allotment to the underwriters. The offering is subject to regulatory approval, with the closing expected on or about Feb. 19.

Lions Gate shares are listed on the tse and the American Stock Exchange under the lgf trading symbol.

Meanwhile, lge is producing its first children’s series, Mega Babies, through animation subsidiary Cine-Groupe of Montreal along with Sony Wonder.

Fox Family Channel has ordered 26 half-hour episodes of the toon series to premier in fall 1999.

Mega Babies is created by Christian and Yvon Tremblay and Landmark Entertainment Group. Producer is Cine-Groupe’s Jacques Pettigrew. Landmark maintains domestic merchandising rights while international distribution is represented by MediaWorks International and Cine-Groupe.

Sony Wonder will handle video.

In other Cine-Groupe news, word on the street at the cftpa conference is that former Atlantis distribution exec Derek McGillivray and former Prime tv executive Bill Grey could be manning Cine-Groupe’s new Toronto office.

With a file from Allison Vale.