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Seven Arts Ent (SAPX) to Explore Sale, Other Options

December 20, 2012 10:16 AM EST Send to a Friend
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Seven Arts Entertainment, Inc. Common stock (OTCBB: SAPX) 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."




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