Vancouver: Canada’s newest film mogul says he’ll keep to his core strengths and let the management teams of his acquired film companies continue to do what they do best.

Former stock broker Frank Giustra – now chair and ceo of about-to-be-public Lions Gate Entertainment – says he is good at executing a vision and raising money. After he left Vancouver-based Yorkton Securities in December, he started Lions Gate in January with the goal of creating a vertically integrated, u.s.-style studio in Canada.

After raising $56 million privately, including $16 million of his own money, Giustra went shopping.

He bought 100% of Cinepix Film Properties in May for $37 million, North Shore Studios for $36 million in July, and most recently Peter Guber’s one-year-old Mandalay Television for an incentive-laden stock swap.

Giustra’s business plan also includes an output deal with an unnamed major u.s. studio that can provide cofinancing and distribution. (Giustra is steadfast in not commenting on the u.s. studio deal that is rumored to be either Warner Bros. or Disney.)

And Giustra says he’s not finished yet. In the works is a deal to acquire l.a.-based International Movie Group from his longtime film business partner Peter Strauss, who also owns part of Lions Gate. Giustra is also negotiating a deal to buy an unnamed music company, and promises other surprises. He won’t elaborate on other acquisitions – including whether they might be exhibition companies.

(Clearing up rumors, Giustra says talks with Rainmaker Digital have ended and he owns none of the post-production company, and his only business with Motion Works is in buying some interactive titles.)

His leverage, Giustra says, is access to capital, which is sorely lacking in the Canadian film industry. Lions Gate should be public by Oct. 29 on the Toronto Stock Exchange through a reverse takeover of Beringer Gold Corp., which closed Sept. 16 at 48 cents per share. The current equity offering will bring another $60 million into Lions Gate’s war chest.

Revenues for Giustra’s publicly disclosed assets are expected to top $120 million in 1998.

Lions Gate’s purchase of cfp has already had an effect. While the production slate was being finalized at press time, production volumes are expected to double from eight films in 1997 to up to 15 films next year.

New titles include the Boston-based drama Vig, about a failing bar owner losing control to the mob.

Giustra says he bought North Shore Studios because access to stage space is tight, and he is considering an expansion of North Shore to add another soundstage, earmarked presumably for the Mandalay Television projects expected to be shot here.

Mandalay is projected to do seven to 10 projects next year, and Giustra says Guber – who currently owns 4% of Lions Gate – has a bonus system whereby increased revenues at Mandalay increase his ownership in Lions Gate.

Mandalay shot Medusa’s Child and other projects in Vancouver in 1997.

The five-year deal with the unnamed major u.s. studio will allow Lions Gate to produce action-adventure films in the budget range of us$15 million to us$65 million.

Giustra says synergies will be created between the newly joined companies. His cost of capital drops with the new clout and he increases the franchise power of his properties because of the diversification into television, low-budget films, mid-budget studio features, distribution, marketing and production. Giustra says Lions Gate will cultivate relationships with independent producers, but he, himself, will only be consulted on stories, casting, financing and distribution. ‘I know enough about the business to know what makes sense,’ says Giustra. ‘But I’m no film producer.’

In the meantime, he makes no promises that Canadian actors, directors, writers and creators will get priority treatment at Lions Gate. ‘The Hollywood connection is very important. There just isn’t any bankable talent in Canada right now,’ says Giustra, adding that he believes Lions Gate will work to change that over the long term.

Prior to setting up Lions Gate Entertainment, Giustra had dabbled in the film industry for 11 years, raising money for img and executive producing features such as Cadence, Beyond the Stars and Buster.