Former president of Toronto-based Paragon Entertainment (now in receivership), Richard Borchiver, has joined with financier Paul Wynn, to form a new Toronto production company, Annex Entertainment.

Wynn will serve as managing director, Borchiver is president heading up TV production, and Lee, who was most recently with Noble House Communications, will be a partner on the feature side.

Annex has three TV projects slated for production in spring ’99. Two of the projects, Merlin: The Quest Begins, a fantasy series skewing slightly younger than Xena, and TeamXtreme, about crime-fighting extreme athletes, will shoot 22 episodes in New Brunswick, in part due to generous tax credits.

Both will be budgeted at Can$700,000 per ep. Pre-sales have been inked in a number of European and Asian territories. KMG/Seagall is repping the series worldwide. In spring ’99, 26 half-hours of an animated series based on the Marvel Comics characters Micronauts will also begin with an unnamed co-producer.