China's Xing Xing Digital Buys Canadian Animation Studio
TORONTO - Canadian digital studio Rainmaker Entertainment has sold its animation studio to China’s Xing Xing Digital Corp.
Two days after Rainmaker Entertainment president and executive producer Catherine Winder announced her departure, the Beijing-based cartoon studio agreed to take on $7 million in Rainmaker debt and all studio real estate leases.
The acquisition requires approval from Rainmaker shareholders and a greenlight for a foreign takeover under the Investment Canada Act before it is completed.
At the same time, the takeover by Xing Xing Digital has the approval of Rainmaker’s board of directors.
"Following completion of the transaction, Rainmaker's assets will include working capital in excess of $2 million, proceeds of the RSI loan, the potential to participate in any adjusted gross revenues payable to the producer of Escape from Planet Earth and substantial non-capital tax losses,” Tim McElvaine, chairman of the board at Rainmaker, said in a statement.
The Canadian studio is currently producing the feature film Escape from Planet Earth, to be distributed by The Weinstein Company in February 2013.