International Keystone has finally publicly announced its acquisition of Red Sky Entertainment.

The agreement sees Keystone buying 93% of the local distributor’s outstanding shares for $1.8 million, or $0.018 per Red Sky share.

Keystone ceo Robert Vince says his company approached Red Sky in an effort to control more of its product distribution.

Last June, Keystone snatched Mark Borde and Gene Irwin away from l.a.-based distrib Independent Artists to create Keystone’s u.s. distribution beachhead in Malibu.

As reported in Playback’s Aug. 21 issue, Keystone’s expansion into u.s. sales means the company can recoup greater revenues from films that would otherwise go to other sales agents. Buying Red Sky means ‘we aren’t selling off our pictures in Canada,’ says Vince. ‘Our library expands in value.’

Under the terms of the agreement, Working Opportunity Fund and Royal Bank Capital Partners will sell to Keystone all of their common shares of Red Sky once the distrib’s debt is converted into equity.

Once the deal closes, which is expected in September, the Red Sky division will change its name to Keystone and focus on acquiring and distributing larger and more commercial films.

As of Aug. 22, there was an aggregate of 10,900,216 common shares of Keystone issued and outstanding. *