There was more bad news for Alliance Films on Thursday, as L.A.-based Yari Film Group, financier of such films as The Illusionist, Paul Haggis’ Crash and The Hoax, dropped the venerable distributor for newcomer Entertainment One and its Canadian releasing arm Seville Films. Yari and Entertainment One signed a three-year all-rights deal that will see Seville release Yari product in Canada.

The deal is expected to increase Seville’s annual slate by 10 pictures per year over the life of the contract. The first film in the deal, slated for an August release, will be Assassination of a High School President, starring Mischa Barton, Reece Thompson and Bruce Willis.

Patrice Théroux, filmed entertainment president at E1, tells Playback Daily that other titles will include Peter Hewitt’s The Lonely Maiden, Rod Lurie’s Nothing But the Truth and Colombian cocaine thriller Killing Pablo, directed by Joe Carnahan and starring Oscar winner Javier Bardem as drug lord Pablo Escobar.

In a statement, Théroux suggested the new deal is evidence of E1’s growing dominance at home, referring to an opportunity to ‘redefine the balance of power in Canada and globally.’ Yari CCO David Glasser seconded the motion, saying, ‘E1 has moved very quickly to establish itself as a dominant film distribution company in Canada, and we couldn’t be happier than to have them take over the distribution of our films in Canada.’

The films will be released through the joint venture announced last week between Seville and Robert Lantos’ Maximum Films Distribution.

Alliance Films SVP Mark Slone confirms that the last film under the old Alliance Atlantis MPD pact will be Accidental Husband, with a release date of Aug. 22. Alliance’s Spanish distributor, Aurum, has an output deal with Yari that expires in 2009.

‘There are a lot of things out there of varying value,’ says Slone, adding cryptically, ‘You’ll be hearing from us in coming weeks.’