In the past three months, International Keystone Entertainment, an integrated producer and distributor of motion pictures and musical recordings, has raised $8.5 million through private placements and a $4 million public share offering.

With three completed movies in post-production, prepping underway on new projects, and fresh funds in the bank, Keystone has taken steps to secure a bright future.

In November, Keystone president and ceo Lyn Vince reported the Vancouver-based company had raised $5.95 million through a public share offering, and two private placements of unsecured convertible debentures of $550,000 and $1.4 million.

Filed with security commissions in b.c., Ontario and Quebec, the prospectus provided for the issuance of 3.2 million units at a per unit price of $1.25. Keystone says it intends to use the funds to secure foreign distribution rights to its product, and to finance its activities in the music recording sector. The agent for the offering is Marleau, Lemire Securities.

In late January, Vince announced Keystone had raised an additional $2.5 million through a private placement with a Canadian investment dealer.

New investors in Keystone include Malofilm Communications and Republic Pictures, a subsidiary of Blockbuster Entertainment, itself recently acquired by Viacom Inc.

Malofilm chairman Rene Malo and Republic ceo Bob Sigmund are expected to become directors of the company.

Joe Medjuk, a Los Angeles-based producer associated with Ivan Reitman and Universal Pictures, also sits on Keystone’s board of directors.

Robert Vince, president of Malibu, ca.-based Keystone Pictures, the company’s production and distribution operation, says Keystone is ‘right on track’ with plans to produce eight feature films in 1994/95. This activity represents combined production budgets of between $16 million and $20 million, he says.

Recent production from Keystone includes the company’s ninth film, Malicious starring Molly Ringwald, Dream Man, and Dirty Money starring Michael Beihn, now in post-production. Upcoming titles include One Cut from Paradise and Underworld. Robert Vince says Keystone plans to produce a diverse range of theatrical movies including family fare, straight-up drama and thrillers.

One of Keystone’s most successful titles to date is Bullet-Proof Heart, a drama which Keystone Releasing is currently distributing in the u.s. This division distributes films on a selective basis in the u.s. market, but its primary mission is foreign sales, says Vince. In Canada, Keystone product is distributed by Malofilm Distribution.

For its first quarter ending Oct. 31, 1994 Keystone reported revenues of $2.7 million. Net income from operations was $416,000, while the net earnings were $279,000. Per share earnings were $0.15. In 1994, the company changed its year-end to July 31.

In addition to its Vancouver and Malibu offices, Keystone recently opened an office in Montreal.

Company executives are Lyn and Robert Vince, Bill Vince, executive vice-president, production, and Mike Strange, vice-president, chief financial officer.

International Keystone Entertainment is listed on the Vancouver and mse under the ike. symbol.