LOS ANGELES, June 19, 2013 /PRNewswire/ -- Seven Arts
Entertainment Inc. (OTCQB: SAPX) ("Seven Arts" or the "Company")
announced today that its Board of Directors has appointed an
independent committee and is in discussions with a financial
advisor to explore the possibility of a sale of the Company or its
assets or the possibility of a merger as the best method to
maximize stockholder value and to ensure retirement of all the
Company's convertible debt securities. The Company is in
discussions with an investment advisor to advise the Board
throughout this process. The Company intends to continue all
of its operations on a business as usual basis during this
period. The recent market capitalization of the Company and
the outstanding convertible debt securities are less than 25% of
the Company's book value, and the Board believes the Company or its
assets would offer an attractive opportunity for an appropriate
buyer.
In connection with the Board's decision, Peter Hoffman has taken a leave of absence as
chief executive officer of the Company, effective today, for the
next six months to seek opportunities for the Company and to assist
as a producer of the Company's motion picture projects. Mr.
Hoffman has waived his right to salary during this period, but will
retain all other benefits of his employment agreement with the
Company. Mr. Hoffman will be available to the Company as a
consultant at no charge and will continue to act as counsel for the
Company on various legal matters, for which he will be separately
compensated. Kate Hoffman has
been appointed as acting Chief Executive Officer during this
period. Vince Vellardita will
continue as President and Chairman.
Peter Hoffman stated:
"Regrettably the trading value of Seven Arts' common stock
continues to perform at a level far below the Seven Arts' assets or
book value, which may be due to the 'overhang' of the Company's
existing convertible debt securities. Further delays in the
realization of our business plans, principally delays in
commencement of principal photography of Neuromancer and
Winter Queen, have negatively
impacted the financial results we anticipated when Seven Arts
issued these convertible debt securities. As a result, the
Board and I believe that that we can best maximize stockholder
value at the present time by hiring an investment banking firm to
assist with a sale of the Company or its assets or with a
merger. I will step down as CEO for six months to devote my
time to this objective and to progress production of our films, but
will remain available to the Company, as needed. I have
complete confidence in Kate to carry on all film and related
operations, as she has for the last year. Vince Vellardita and Tony Barlo will help us operate our music and
television operations with David Michery. I will pursue every
opportunity to consummate a transaction to maximize value for our
stockholders under the guidance of the Board and its financial
advisors."
About Seven Arts Entertainment Inc.:
Seven Arts Entertainment Inc. 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 June
19, 2013. 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.
Contact:
Seven Arts Entertainment Inc.
Peter Hoffman
(323) 372-3080
phoffman@7artspictures.com
SOURCE Seven Arts Entertainment Inc.
