SAPX News
Seven Arts Entertainment Announces a Stock Repurchase Program
2012-08-07 10:00 ET - News Release
LOS ANGELES, CA -- (Marketwire) -- 08/07/12 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.
