SOURCE: Seven Arts Entertainment Inc.
LOS ANGELES, CA--(Marketwire - Sep 4, 2012) - Seven Arts Entertainment Inc. (NASDAQ: SAPX) ("Seven Arts" or the "Company") confirmed today its 1-for-70 reverse split of its common stock that was effective immediately after the close of the markets on Friday. The new CUSIP number for the Company's common stock is 81783N 201.
Seven Arts also announced that, subject to appropriate and required regulatory filings and approvals, it has declared a warrant dividend to those persons beneficially owning its common stock as of the close of the markets on August 31, 2012. For every ten pre-reverse split shares of common stock held as of such date and time, the holders thereof will be entitled to receive one warrant as a dividend. Until its expiry date, each warrant, once distributed following such approvals, will be exercisable for the purchase of one share of the Company's post-reverse split common stock at a price equivalent to today's post-reverse split closing bid price. The warrants will expire on the earlier of (i) the date that the holder disposes of the common stock in respect of which the warrant dividend was declared, if such disposition occurs on or before the close of the markets on October 31, 2012, or (ii) 5:00 p.m., PST, on January 31, 2013. Seven Arts does not expect that a secondary market will develop for such warrants.
The Company remains concerned with the heavy volume of reported trading in its common stock and believes it is primarily based on trading programs and other trading strategies, some of which may be improper. Accordingly, the Company's transfer agent will verify certain records at DTC and at other sources to ensure that this dividend is only received by persons who owned common stock at the close of the markets on August 31, 2012. The Company believes that the dividend of one warrant per share may provide certain economic value to existing stockholders during and immediately following the reverse split process and thereafter until such time as the fundamental growth and profits of Seven Arts are recognized by the public markets. Management remains optimistic regarding the results of operations for the fiscal year ended June 30, 2012, which should be reported by the end of September, 2012, and with the prospects of its motion picture and music businesses.
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 September 4, 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.