Kew Media Group Inc. Completes $70 Million SPAC IPO

Goodmans represented Kew Media Group Inc. (the Corporation) in its $70 million initial public offering of Class A Restricted Voting Units on June 13, 2016. The proceeds from the distribution of the Class A Restricted Voting Units plus $1,050,000 from the distribution of Class B Units (each consisting of one Class B Share and one warrant) to the Corporation’s founders was deposited into an escrow account and will only be released upon the satisfaction of certain prescribed conditions. 

The Corporation is a special purpose acquisition corporation (SPAC) formed to effect a qualifying acquisition. The Corporation’s intention is to uniquely focus on small-to-medium sized international media production, distribution and talent management opportunities and/or related sectors with an emphasis on Canada, the United States and the United Kingdom.

The Corporation’s founders are comprised of KMG Entertainment LP and the following individuals:  Steven Silver, Chief Executive Officer and Director, and a Partner and Co-founder of the Blue Ice Group; Peter Sussman, Executive Chairman and Director, and the Co-founder of Aver Media Finance, part of BMO Financial Group; Maurice Kagan, Chief Financial Officer and Director; Wayne Purboo, Director, and President, Chief Executive Officer and Co-founder of Quickplay Media Inc.; Les Sherman, Director, and Senior Investment Advisor and Senior Vice President of Dundee Goodman Private Wealth; Nancy Tellem, Director, and Executive Chairman and Chief Media Officer of Interlude Ltd.; Neil Tabatznik, Director, and a Partner and Co-founder of the Blue Ice Group; Nicolas Chartier, Advisor, and Chief Executive Officer and Founder of Voltage Pictures Inc.; Peter Emerson, Advisor, and the Former President of International Television for Entertainment One Ltd., as well as the former President and Founder of Oasis International Inc.; David Fleck, Advisor, and Partner and Senior Vice President of C.A. Delaney Capital Management Ltd.; David Reckziegel, Advisor, and the Founder and Managing Director of Rex Media Capital Inc.; Edward Riley, Advisor, and the former Head of Television Distribution for Alliance Atlantis Communications Inc. and current advisor at the MaRS Practice in Toronto; Mark Segal, Advisor, and Executive Vice President of Finance and Chief Financial Officer of Spin Master Corp.; Patrice Théroux, Advisor, and former President of Film and Television and Director at Entertainment One Ltd.; and Marc Hirshberg, Advisor, and Chief Executive Officer and President of Evra Media Solutions Inc. 

Concurrent with the closing of the offering, the Corporation’s founders purchased an aggregate of 442,000 Class B Units at an offering price of $10.00 per Class B unit, resulting in aggregate proceeds of $4.42 million to the Corporation. 

The offering was underwritten by a syndicate of underwriters led by TD Securities Inc., Cantor Fitzgerald & Co. and National Bank Financial Inc., and included Cormark Securities Inc. and GMP Securities L.P.