Even though the formation of the publicly traded DHX Media marks a new corporate direction for both participating companies, it otherwise remains business as usual at The Halifax Film Company and Toronto’s Decode Entertainment.

The two prodcos married and formed Halifax-based DHX in the spring, taking the company public on May 19, but operations of the two will remain largely separate, says David Regan, DHX’s EVP, corporate development and former acting CFO at HFC.

‘The idea is that DHX will be a corporate entity and that each company will operate autonomously, focusing on what they do while cooperating wherever possible,’ says Regan. ‘Life doesn’t change, other than that we have some corporate overhead we share to achieve some efficiencies, and deeper pockets with which to tap markets.’

The original companies behind DHX – which is listed as such and currently trades on both the TSE and AIM in the U.K. at nearly $2 a share – say they are not letting the fact that they’ve taken their business public alter the nature of work they do.

‘It doesn’t change the way we do business at all,’ says Steve DeNure, president of Decode. ‘The goal here is to let the companies under the DHX umbrella continue to do what they do well.’

Decode is behind numerous live-action and animated children’s shows, including Angela Anaconda, Naturally Sadie and Delilah & Julius. DeNure argues that while Decode has been immersed in the international marketplace for its nine years, HFC will likely find similar success for its less Canadian-rooted programs, including preschooler Poko for CBC, through Decode’s expansive international distribution outlets. HFC’s more obvious Cancon includes longstanding comedy This Hour Has 22 Minutes, also on the Ceeb. The company’s slate also includes new CBC daytime soap North/South and the upcoming feature film Shake Hands with the Devil.

‘I think that continuing to create projects focused on Canada, such as 22 Minutes, is both very satisfying and an important business for [HFC],’ says DeNure. ‘As a public company, [DHX] will have to conform to a whole range of reporting and disclosure standards, but the fundamental principle here is to have smart professional management looking after the public company, while the rest of us continue to do what we do, which is run our content creation and distribution business.’

The DHX management team is being kept lean, says DeNure, headed by HFC cofounder Michael Donovan as CEO and chair, Dana Landry as CFO (also HFC CFO) and Regan. No layoffs have taken place as a result of the merger – in fact, a few jobs have been created, says Regan.

‘We were successful in tapping the equity markets and have cash that will help us to grow,’ he says. ‘We’ve mentioned possible acquisitions, but it is also the organic growth.’

Regan says DHX’s presense will bolster the East Coast production community, and stresses the importance of keeping good animators steadily employed in the region.

‘It is just going to mean more business here, and will contribute to a healthy industry,’ says Regan. ‘It’s a very mobile workforce now, so we hope to be able to maintain a much higher capacity and therefore ensure longer-term work for our crews.’

With a common interest in taking their companies public, DeNure and HFC’s Donovan began serious merger talks in May 2005. In November, the partnership was forged, and both companies now look forward to how they can mutually benefit.

Regan says HFC saw Decode as an ideal company to partner with because of its complementary slate and back catalog, and its all-important international distribution reach.

‘While it will be extremely satisfying to have one of the biggest production companies in Canada in a matter of years, we [move ahead] with the recognition that our aspirations are global, and that is one of the reasons why we did this merger,’ says Regan. ‘Decode’s international sales network and profile are so high, it lifts [HFC] onto a new stage.’

DeNure is bullish about the new company, with its larger, more diverse slate of programming. He expresses excitement about HFC’s $10-million feature Shake Hands with the Devil, about retired lieutenant-general Roméo Dallaire’s horrifying experiences in Rwanda, which is in preproduction in Africa under the supervision of Donovan. At the same time, DeNure says DHX can excel in the international children’s programming marketplace immediately, using the companies’ combined library.

‘We believe the kids market is a place where Canada has a real competitive advantage, and there is a much greater chance of success internationally than [for] some companies focused on drama,’ he says.

Neither DeNure nor Regan have an exact growth target in mind for DHX.

‘We want it to be as big as makes sense, as far as finding like-minded people with whom we share similar ideals and concepts about production,’ says Regan.

www.decode-ent.com

www.halifaxfilm.com