Touring theatre company Theatre Alibi is set to become an arts venue after opening a permanent base.
Prior to losing its Arts Council England (ACE) National Portfolio status, which equated to £241,597 of annual funding, the company developed touring plays from a base at Exeter’s Emmanuel Hall.
It now plans to use the hall as a child-centred arts venue, named The Centre for the Imagination for Young People and Children.
The space will host its first event during the current half term and plans to host and share the work of other creative organisations.
Chief Executive Debbie Bucella told the BBC the organisation reached 13,000 children annually with its tour.
"When that funding got removed, sadly we had to stop doing that work, but we looked at what our assets were and the biggest thing that we have is this building," Bucella added.
"We decided we would reach children and still give them something spectacular and a great cultural experience but just within our own building".
An Arts Council England spokesperson added: "We're thrilled to see children and young people experience Theatre Alibi here in Exeter".
"Thanks to public funding, we are able to support their pivot to a new model at Emmanual Hall so that audiences of all ages can get creative."