Seven Arts Entertainment Inc. Announces It Will Explore Sale Or Merger Opportunities
LOS ANGELES, Dec. 20, 2012 /PRNewswire/ -- Seven Arts Entertainment Inc. (OTCQB: SAPX) ("Seven Arts" or the "Company") announced today that it has engaged investment advisors to explore a sale or merger of the company or its assets. The Company's net book value is approximately $14 million and management believes that the value of the Company's film and music assets may be greater than this amount. The current market capitalization of the Company is materially less net book value. The directors believe that the best means of maximizing stockholder value in light of recent market trends may be through a sale or merger of the company or its assets. No assurances can be made as to the outcome of this initiative and, while management explores possible opportunities with its investment advisors, the Company will continue its operations as it and its predecessors have for the last twenty years.
Chief Executive Officer Peter Hoffman stated, "The current market value of our common stock does not in my opinion represent the true value of the Company's assets and its business. While the Company has sought to reverse recent negative trading activity, at present, we have not been successful in doing so. We continue to believe that this trading activity is due to short-sellers and numerous misleading and outright false statements being circulated about the Company and its operations. As a result, the realization of value for the stockholders may require a sale or merger of the Company or its assets. The business we have conducted for over twenty years will continue as we explore these opportunities."
About Seven Arts Entertainment Inc.:
Seven Arts Entertainment Inc. is the successor to Seven Arts Pictures Plc, which was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.
Cautionary Information Regarding Forward-Looking Statements.
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated. The information contained in this release is as of December 20, 2012. Seven Arts assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.
Seven Arts Entertainment Inc.
SOURCE Seven Arts Entertainment Inc.