Alliance Films is expected on Tuesday to formally unveil a $38.5 million deal to acquire rival Maple Pictures as part of a three-way deal that includes Lionsgate Entertainment.

Alliance Films head Victor Loewy told Playback Daily that the acquisition awaits the approval of his board of directors, which is expected late Monday or early Tuesday.

The deal  is valued at $38.5 million on a cash-free and debt-free basis.

Loewy dismissed as “untrue” a U.S. media report that the Maple Pictures workforce will be largely culled after the acquisition is completed.

“We’ve not made that determination,” he said of how many Maple Pictures staff will remain following the close of the deal.

The sale of the Lionsgate stake in Maple Pictures, which was launched in 2005 by co-presidents Laurie May and Brad Pelman, is part of a strategy by the Vancouver-based mini-studio to monetize non-core assets to help pay down company debt.