Triptych's Robin Cass is setting the project up as an Ontario-Manitoba coproduction with plans to begin principal photography later this autumn.
Based on the darkly comic play by Lee MacDougall, which won the 1996 Dora Mavor Moore Award for Outstanding New Play, the screenplay is co-written by MacDougall and Yates.
Backers include Telefilm Canada, federal and provincial tax credits.
Cass is negotiating an international sales agreement with Morris Ruskin at Shoreline Entertainment.
MacDougall gathered his material whilst acting at regional theatres around Canada, a period when he was sharing living quarters with ex-convicts and drug addicts. 'The script is fantastic and very funny,' said Cass, who declined to provide a budget range, saying it was 'low budget'.
Describing the play as 'a massive international success', Cass said it has played in Tokyo, London, off Broadway and been translated into German, French and, most recenlty, Chinese, where it will next be mounted. 'It was a hotly pursed set of rights that I am happy to have,' said Cass.
Meanwhile, Celluloid Dreams is handling world sales for Emotional Arithmetic.
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