Decision CRTC 2001-764
Ottawa, 17 December 2001
Mr. Robert Templeton
Sun Radio Limited
745 Windmill Road
Dartmouth, Nova Scotia
B3B 1C2
Dear Sir:
Re: Application No. 2001-1065-1 - Approved
Transfer of control - Sun Radio Limited, licensee of radio programming undertaking CIEZ-FM, serving Halifax, Nova Scotia requests authority to transfer all the issued and outstanding shares of Sun Radio Limited from Arthur J. Hustin, Jr. to CHUM Limited (50%) and NewCap Inc. (50%).
The Commission has completed its examination of the above-noted application for authority to change the effective control of Sun Radio Limited, ("Sun Radio") licensee of radio programming undertaking CIEZ-FM, serving Halifax, Nova Scotia. The transfer is effected through CHUM Limited ("CHUM") and NewCap Inc. ("NewCap") acquiring 50% each of the issued and outstanding shares of Sun Radio.
Following the transaction NewCap and CHUM would equally own CIEZ-FM. Under mutual agreement NewCap would be responsible for the operation and control of the station.
NewCap and CHUM have pledged to contribute 10% ($400,000) to the Benefits Test rather than the 6% required in the Commercial Radio Policy 1998, Public Notice CRTC 1998-41. The Commission notes that the benefits will be allocated over 7 years in the following manner:
5% ($200,000) to the Canadian music marketing and promotion fund and
5% ($200,000) to Factor with both organizations encouraged to direct the funds to Musical Artists from Atlantic Canada.
The Commission notes that CHUM, NewCap and Sun Radio have entered into a Termination Agreement with regards to the Local Management Agreement ("LMA"). The termination date is December 31, 2001. The stations involved in the LMA are CFDR-AM and CFRQ-FM, the NewCap stations and CIOO-FM and CJCH-AM the CHUM stations, and CIEZ-FM the Sun Radio station.
This transaction and the termination of the LMA falls within the LMA Policy and the common ownership policy established in Public Notice CRTC 1998-41, Commercial Radio Policy 1998.
The Commission will modify its ownership records to reflect the authorized ownership of Sun Radio as shown in the attached appendix. All letters of approval issued by the Commission are made available for public examination at the Commission's central office. The Commission also requires you to append this letter to your license.
Yours sincerely,
Ursula Menke
Secretary General
Att.
c.c: CHUM Limited
NewCap Inc.
Appendix
Sun Radio Limited
|
Shareholder
|
Type
|
# held
|
% of vote
|
|
NewCap Inc.
|
Preferred
|
11,500
|
N/A
|
|
NewCap Inc.
|
Common
|
5,000
|
50%
|
|
CHUM Limited
|
Common
|
5,000
|
50%
|
|
CHUM Limited
|
Preferred
|
11,500
|
N/A
|
Date Modified: 2001-12-17
|