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Producer Catherine Gourdier's Canada-based Ladyhawke Ventures has acquired the film rights to novel "The Town That Forgot How to Breathe" by Kenneth J. Harvey for Gourdier to adapt.

Novel was published by Raincoast Books; Harville Secker/Random House will publish the book in the U.K. this May.

Newfoundland-set ghost story concerns a burg where residents come down with a mysterious illness that has even the military alarmed.

At AFM, Ladyhawke Ventures will debut its latest feature, "Some Things That Stay," based on the novel by Sarah Willis. That pic was Gourdier's first feature adaptation. Coming-of-age story unfolds within a picturesque, rural 1950s setting. Gourdier also recently optioned Willis' second novel, "The Rehearsal."

Gourdier was second assistant director on "Chicago," "Wrong Turn" and "Nemesis Game."

"Some Things That Stay," starring Katie Boland, Stuart Wilson and Alberta Watson, was directed by Gail Harvey. It will screen March 3 during AFM.