LOS ANGELES, CA--(Marketwire - Aug 7, 2012) - Seven Arts Entertainment Inc. (NASDAQ: SAPX) ("Seven Arts" or the "Company") announced today that its Board of Directors has authorized the adoption of a Stock Repurchase Program, pursuant to which the Company may repurchase up to $250,000 of its currently outstanding common stock at prevailing market prices up to $.10, as adjusted for any stock split. The time period during which the repurchasing activities may occur will be dependent on future market volume, but is expected to start immediately and continue through October 31, 2012. The Stock Repurchase Program is subject to various trading restrictions as established in Rule 10(b)-18 of the Securities Exchange Act of 1934.
CEO Peter Hoffman stated: "Management is aware of concerns of shareholders regarding the heavy selling of Seven Arts common stock and the potential effects on that selling of Seven Arts' previously announced program of converting its debt into equity. Management believes that this selling volume is far in excess of the number of new shares issued in debt conversion and that much selling pressure is the result of market strategies or manipulation, including substantial short selling as reflected in the failure to deliver chart. In response to those concerns, management has set aside and intends to further set aside from Seven Arts' expected tax credit collections up to $250,000 to provide bid support of our common stock up to $.10. Management continues to believe that those market participants 'betting against' Seven Arts will be disproven by financial results, which is the only viable long term strategy to defend against widespread manipulation and short term trading activities, and we believe such results will be forthcoming."
Management believes that the Seven Arts' debt conversion program has substantially strengthened the Company and prepared it for future growth. Seven Arts' shareholders equity is now estimated to be in excess of $25 million.
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.