Vancouver: Lions Gate Entertainment of Vancouver says it is extending its vertical reach with a new 50/50 joint venture with Toronto-based financing company MediaVentures.

Called CineGate Production Management Services, the joint venture is expected to stimulate $300 million in production by the end of March 2001, say the partner companies. The deal gives Lions Gate’s production and development slate direct access to MediaVentures’ financing abilities based on the Canadian tax-credit system.

Technically, the joint venture will provide management services to Canadian limited partnerships funding production in Canada with the use of the Film or Video Production Services Tax Credit and the Canadian Federal Tax Act.

‘The joint venture combines Lions Gate’s industry relationships and production expertise with the Canadian syndication adeptness of the MediaVentures group, a leader in Canadian investor financing of u.s. studio productions in Canada,’ says Jon Feltheimer, vice-chairman and ceo of Lions Gate Entertainment. ‘In return, Lions Gate will earn fees based on funds raised.

‘This venture continues our expansion towards becoming a diversified mini-major entertainment company,’ adds Feltheimer. ‘In addition, it will create opportunities to identify and acquire funded projects that may be attractive for distribution by Lions Gate.’

As part of the agreement, Lions Gate will be bringing projects to MediaVentures rather than the reverse, which is more traditional, says investor relations representative Don Gordon. Lions Gate will provide executive management to identify investment opportunities, commission evaluations of revenue potential of productions, negotiate studio and production services, and monitor production progress.

The joint venture affects film and television production going forward rather than existing production, adds Gordon.

Lions Gate Entertainment executive vp John Dellaverson has been appointed chairman of the joint venture.

-www.lionsgate-ent.com