Ellis will write the screenplay in collaboration with Van Sant who’s latest film “Milk” won two 2009 Academy Awards among several nominations. Ithaka Entertainment’s Braxton Pope will also produce alongside PalmStar’s CEO Kevin Frakes and Celluloid Dreams’ Hengameh Panahi. Patrick Siaretta and K5 Film’s Oliver Simon and Daniel Baur will serve as executive producers.

The true story revolves around the short lives of Duncan and Blake, who shared a radiant, obsessive love, an uncommon bond formed in no small part by their almost religious belief in the concept of bohemia. Duncan made a name for herself as one of the first designers of video games for girls, and Blake was an artist whose “digital paintings”—kaleidoscopic abstractions shown on plasma screens—had made him a rising art star. Together, they were a magnetic social force, who fast became the toast of the downtown New York scene. But out of nowhere, they developed a consuming belief that complex forces involving the government and various religious organizations were conspiring against them, which began a strange, downward spiral into a world of paranoia that resulted in Duncan taking her own life on July 10, 2007. In a Romeo and Juliet-esque twist of fate, it was Blake who first discovered her body on the floor of their bedroom, and it was Blake who, a week later, ended his own life by walking into the Atlantic Ocean.

Founded in 2004 by Kevin Frakes and Stephan Paternot, PalmStar Entertainment (www.palmstar.com), is focused on developing literary driven properties and true stories, and has a number of projects in development including another Bret Easton Ellis project, “Lunar Park.” PalmStar’s head of development and production, Courtney Andrialis, will serve as a Co-Producer on the film.

At the forefront of international production, development, sales and financing for more than 15 years, Celluloid Dreams has been responsible for developing the careers of some of the most important and respected film directors of our times. One of the few truly independent production and sales outfits, Celluloid’s most recent successes include Samuel Moaz’s “Lebanon”, which was just acquired by Sony Pictures Classics for US rights, after having won the Golden Lion at the Venice Film Festival; and it’s two co-produced films In Competition at this year’s Cannes Film Festival: Marco Bellocchio’s “Vincere” and Jacques Audiard1s “A Prophet”, which came away with the Grand Prix and also considerable critical praise and sales. Always at the cutting edge of technology Celluloid, in conjunction with The Auteurs and The Criterion Collection runs the world’s first global online social community and independent film distribution network. Offering a more cost effective way of reaching a global audience as well as monetizing gross revenues for rights owners.

Braxton Pope, who has a production deal with Lionsgate, recently wrapped the indie feature “Shrink” with Kevin Spacey and Robin Williams, in addition to the 2007 film “The Take” starring John Leguizamo and Tyrese Gibson, which Sony operated Destination Films released theatrically.

A young company founded in 2007 in Germany and the UK, K5 is on the fast track to becoming one of the hottest, new production and international sales companies, having recently handled foreign sales for Aaron Schneider’s Toronto hit “Get Low” starring Robert Duvall, Bill Murray, Sissy Spacek and Lucas Black, which Sony Pictures Classics just acquired for North American release in Toronto. Other titles on K5’s impressive slate include Tom McCarthy’s “The Visitor”, for which Richard Jenkins received an Academy Award nomination for Best Actor last year.

Jeremy Kay in Cannes

Sarah Michelle Gellar has replaced Kate Bosworth on Das Films, Velvet Steamroller Entertainment, Muse Productions and PalmStar Entertainment’s Paulo Coehlo adaptation Veronika Decides To Die.

Jonathan Tucker, David Thewlis, Melissa Leo and Erika Christensen also star in the story of a bored woman in her mid-twenties who discovers a new lease of life after a failed suicide attempt. Velvet Octopus is handling pre-sales in Cannes.

Roberta Hanley and Larry Gross wrote the screenplay and Emily Young is attached to direct. Production is scheduled to start on May 12 in New York City.

Sriram Das, Velvet Steamroller’s Jonathan Bross and Chris Hanley of Muse Productions are producing and Kevin Frakes and Stephan Paternot of PalmStar will serve as executive producers. Velvet Steamroller and Das Films are financing the project.

Kate Bosworth (Getty Images photo)

TORONTO — Kate Bosworth will play the title role in Emily Young’s feature adaptation of Paulo Coelho’s best-seller “Veronika Decides to Die” for Das Films, Palm Star Entertainment and Muse Films.

In the drama, written for the screen by Larry Gross (“We Don’t Live Here Anymore”) and Roberta Hanley (“Woundings”), Bosworth will play a woman who wakes up in a mental institution after a failed suicide attempt. She discovers that she has a weakened heart and only days to live. The film follows her recovery as she finds true love and a newfound will to survive.

“Veronika” will be produced and financed by Das head Sriram Das and Muse owner Chris Hanley, and executive produced by Palm Star CEO Kevin Frakes. Principal photography begins this winter in New York. Velvet Octopus will serve as the film’s sales company.

“Veronika” is the first project out of the gate for Das Films, founded this spring by Das and home to 15 pending projects. Hanley’s Muse has produced a number of indie titles in the past nine years, including “American Psycho,” “The Virgin Suicides” and “Buffalo 66.” Stephan Paternot and Frakes’ Palm Star are developing an adaptation of Peter Biskind’s nonfiction book “Down and Dirty Pictures: Miramax, Sundance, and the Rise of Independent Film” as a feature narrative comedy, with Ken Bowser attached to direct. Palm Star also is developing a big-screen version of Bret Easton Ellis’ novel “Lunar Park.”

Bosworth stars opposite Sigourney Weaver in the drama “The Girl in the Park,” which premiered Sunday at the Toronto International Film Festival and marks the directorial debut of Pulitzer Prize-winning “Proof” playwright David Auburn. Bosworth rose to fame as Lois Lane in “Superman Returns” and next will be seen starring in “21″ opposite Jim Sturgess and Kevin Spacey for Columbia Pictures.

Young received the 2004 BAFTA Carl Foreman Award for her first feature, “Kiss Of Life,” which also was an official selection in the 2003 Cannes Un Certain Regard.

Screenwriter Larry Gross won the Waldo Salt Screenwriting award for “We Don’t Live Here Anymore” at the 2004 Sundance Film Festival. His other credits include “48 Hrs.” and “Prozac Nation.”

Brazilian author Coelho’s novel “Veronika” has sold more than 9 million copies. He is best known for his book “The Alchemist.”

Bosworth is represented by UTA, One Talent Management and attorney Warren Dern. Young is repped by UTA and Michelle Kass in the U.K. Gross is repped by ICM.

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