ARCHIVED -  Decision CRTC 99-550

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Decision CRTC 99-550

Ottawa, 20 December 1999

Affinitek Corp., on behalf of a wholly-owned corporation of Affinitek Corp. to be incorporated and to be known as inc.
Mississauga, Ontario – 199910261

16 November 1999 Public Hearing
in Saskatoon

Acquisition of assets

1. The Commission approves the application for authority to acquire the assets of the Pelmorex Radio Network from Pelmorex Radio Inc. (Pelmorex), and for a broadcasting licence to continue the operation of this undertaking.

2. The Commission will issue a licence to Affinitek Corp., on behalf of a wholly-owned corporation of Affinitek Corp., to be incorporated and known as inc., expiring 31 August 2004, the current expiry date, upon surrender of the current licence. The licence will be subject to the conditions specified in this decision and in the licence to be issued.

3. This authority will only be effective and the Commission will only issue the licence at such time as it receives documentation establishing that an eligible Canadian corporation has been incorporated in accordance with the application in all material respects and that this corporation may be issued a licence.

4. Affinitek Corp. was incorporated under the laws of Alberta. Control rests with its board of directors, all of which are Canadian citizens ordinarily resident in Canada.

5. The purchase price relating to this transaction is $500,000. Based on the evidence filed with the application, the Commission has no concerns with respect to the availability or the adequacy of the required financing. To ensure that the radio network continues operation, Pelmorex requires the applicant to invest $1,112,500 to upgrade or replace equipment and to cover the network’s operating and marketing costs.

6. Affinitek Corp. will continue to provide the same service as that offered by the Pelmorex Radio Network. It currently produces and distributes three music services in country, oldies and adult contemporary music formats. The network also distributes syndicated programs to more than 240 affiliates across Canada.

7. To develop the network further, the applicant will establish an Advisory Board composed of experienced broadcasters and station operators. It will also increase production of syndicated features and programming specials designed to appeal to all of Canada’s regions. Moreover, the applicant will create new services using digital technology. In the area of Canadian talent development, the applicant will help independent stations to promote artists in all musical genres.

Conditions of licence

8. By condition of licence, the licensee must:

• adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council; and

• adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.

Secretary General

This decision is to be appended to the licence. It is available in alternative format upon request, and may also be viewed at the following Internet site:

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