In a major shift back into the production field, Montreal-based Malofilm Communications has inked a deal with the Entertainment Finance Group of Los Angeles to provide the financing for six feature films over the next two years, with budgets ranging from $ C6 million ($ 4.4 million) to $ 20 million ($ 14.7 million) per picture.
Entertainment Finance Group, headed by banker Solomon J. LeFlore, will set up a banking consortium to guarantee 80% of the financing, with the funding company raising the money through its distribution arrangements with Orion Pictures and other foreign-sales agents.
Malofilm will kick in the rest of the cash through its Canadian distribution rights and the Quebec tax-credit program. Orion will handle the distribution in the U.S. and Malofilm will distrib the pix in Canada.
Malofilm, which recently went public, generates most of its revenue from its vid distribution activities. It has the French video rights in Canada for all Paramount Pictures product, and also has exclusive video output deals with Turner Home Entertainment, Vidmark, Showtime Networks Inc. and Republic Pictures.
“The idea is to go actively back into production,” says Malofilm topper Rene Malo. “We will continue to develop our distribution side, but we’re going to produce more films with bigger budgets. Our intention is to produce at least four movies a year, within two years. We want to be involved in all areas of production and distribution.”
Malo also announced that his company has signed an agreement with Pieter Kroonenburg’s L.A.-based Kingsborough Pictures to develop and produce several features, and some of those pix might be financed as part of the deal with the Entertainment Finance Group.
Malofilm is finalizing the feature-film projects to be financed in partnership with EFG, and shooting will begin on the first pic by early August at the latest. Most will be lensed in Canada.
Malofilm, which raised $ C10 million ($ 7.3 million) when it went public late last year, reported revenue of $ C8.7 million ($ 6.4 million) and net profit of $ C693,668 ($ 508,458) in its first quarter ended Dec. 31, 1993.