Montreal: Behaviour Communications has completed the sale of its Canadian film distribution operations to Industry Entertainment (jdr).

Industry acquires 100% of the issued and outstanding shares of Behaviour Distribution for $3.9 million, consisting of $2.9 million in cash and the balance, $1 million, due by no later than Aug. 20, subject to certain potential purchase price adjustments.

The new distribution entity is known as Seville Pictures. President David Reckziegel and vp production John Hamilton are the controlling shareholders. Pierre Brousseau is senior vp distribution. Reckziegel is also a director of Behaviour.

Behaviour says it has used the initial cash payment to reimburse a convertible debenture of $3 million owed to Placements St-Mathieu.

Last month, Behaviour announced the Superior Court of Quebec had approved a request to withdraw a receiving order petition filed Nov. 29 by Banque Nationale de Paris (Canada).

Behaviour currently has 47 employees in Montreal and Los Angeles.