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Seeks injunction to prevent sale of Canon and Panasonic Theatres and related agreements TORONTO – May 7, 2008 – Dancap Productions Inc. and related companies have commenced legal proceedings against U.S.-based Key Brand Entertainment and its affiliates and subsidiaries and Toronto-based Ed Mirvish Enterprises. Dancap is seeking an injunction to prevent Key Brand from selling the Canon and Panasonic Theatres in Toronto to Mirvish, and entering into a non-compete and additional rights agreement with Mirvish. Dancap also seeks damages. The suit alleges that Key Brand has breached its contractual obligations to Dancap, which flow from an agreement signed last fall between the two companies. It further alleges that this breach will cause irreparable harm to Dancap and that Mirvish encouraged Key Brand to breach its contract with Dancap. In addition to acquiring an equity interest in Key Brand, Dancap gained full authority to autonomously manage Key Brand’s Canadian assets, including the Canon and Panasonic Theatres in Toronto, and final right to determine which productions would be shown and when. Dancap also gained access to Key Brand’s pipeline of theatrical productions and its corporate and theatrical relationships (including Broadway Across America and Broadway Across Canada) as well as the right to invest in future Key Brand and Mirvish productions.
After the closing of the transaction, Dancap sought information to allow it to begin the process of scheduling the theatres and managing the Canadian assets. Its efforts to obtain financial, operational and scheduling information were largely frustrated. Dancap alleges that around the time of the closing, Key Brand began secret negotiations with Mirvish to sell the Canon and Panasonic Theatres to it, without Dancap’s knowledge, and in breach of its prior agreement with Dancap. Key Brand also proposes to agree to non-compete terms with Mirvish, nullifying the contractual rights Key Brand had previously granted to Dancap by shutting off the theatrical product pipeline it had promised to provide. Dancap Lawsuit Although Key Brand has no contractual right to terminate Dancap management rights, the proposed sale will have the effect of eliminating Dancap’s ability to schedule any of its shows at either theatre. “Our primary reasons for entering into an agreement with, and investing in, Key Brand were to manage the Canadian assets including the right to control the scheduling of shows at the Canon and Panasonic Theatres, and to form a strategic alliance with Key Brand” says Mr. Dan, Founder and President of Dancap. “Key Brand has long known of our interest in the Canon and Panasonic Theatres,” he explained. “We would never have invested had they disclosed a plan to sell these facilities and enter into agreements with Mirvish. We now have an obligation, to our customers and our business, to enforce our rights under our agreement.” Mr. Dan added, “We believe that everyone benefits from Toronto enjoying a rich and vibrant theatre scene, as it did a few short years ago. Trying to limit choice through anti-competitive tactics hurts everyone.” Following an attendance at the Ontario Superior Court of Justice on May 6, Key Brand, its affiliates and subsidiaries and Mirvish provided an undertaking to the Court not to close the transaction until June 6, in order to permit a hearing on the merits of Dancap’s motion for an injunction. Dancap Productions has been gearing up for its final three shows in their inaugural series. The Cameron Mackintosh and the National Theatre of Great Britain’s acclaimed new production of Lerner & Loewe’s My Fair Lady will be presented from May 8 to 31 at the Toronto Centre for the Arts. A show starring a cast of fuzzy puppets searching for love, purpose and a decent apartment – Avenue Q – will be presented at the Elgin Theatre from July 29 to August 21, 2008. Finally, the much anticipated Jersey Boys will be presented at the Toronto Centre for the Arts from August 21 to October 5, 2008. Winner of the 2006 Tony Award® for Best Musical and the 2006 Grammy Award for Best Musical Show Album, Jersey Boys tells the story of Frankie Valli and The Four Seasons: Frankie Valli, Bob Gaudio, Tommy DeVito and Nick Massi. Tickets for all three shows are available at dancaptickets.com. The company will be showcasing its 2009 Package Announcement on Tuesday, May 20, 2008 at 10:30am at the Toronto Centre for the Arts.
Launched in 2007 by Aubrey Dan, Dancap Productions Inc. (dancaptickets.com), is a commercial theatre company dedicated to producing the best of Broadway-style theatre created in collaboration with acclaimed artists and award-winning creative teams. The company engages theatre lovers in Toronto and throughout Canada. On Broadway and internationally, the company’s producing and investment credits include: Dr. Seuss’ How the Grinch Stole Christmas! The Musical, Tom Stoppard’s Rock ‘n’ Roll, The Farnsworth Invention, Jersey Boys, Wicked, The Wedding Singer, The Pirate Queen and In The Heights. Dancap Productions is also a strategic member of the theatrical development and production company Elephant Eye Theatrical which has a current slate of projects that include: The Addams Family, Bruce Lee: Journey to the West and Saved. Dancap Productions has the right to manage the Canadian assets of Key Brand Entertainment Inc., which include: Broadway Across Canada and Toronto’s Canon and Panasonic Theatres. Mr. Dan serves on the board of Key Brand Entertainment and serves as Chairman of Broadway Across Canada.
Further information: David Weiner
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