LOS ANGELES, CA / ACCESSWIRE / July 22, 2014 / Seven Arts Entertainment Inc. (OTC Pink: SAPX) ("Seven Arts" or the "Company") and Sanwire Corporation (OTC Pink: SNWR) ("Sanwire") are pleased to announce the execution of a definitive Stock Purchase Agreement (the "Agreement") under which Seven Arts will acquire Sanwire’s two subsidiaries; Oklahoma-based Aeronetworks LLC (“Aeronetworks”) and Nevada-based iPTerra Technologies Inc. (“iPTerra”). Closing is expected to be in the next few weeks.
Aeronetworks (www.aeronetworks.net), a pioneer in TV White Space and 4G/LTE, provides advanced wireless communications, broadband services, and video streaming technologies to niche and under-served markets. Revenue for the year ended Dec 31, 2013 was approximately $462,000 (unaudited), and the first four months of 2014 was approximately $251,000 (unaudited).
iPTerra (www.ipterra.net) is a designer, developer, manufacturer and marketer of a real-time 2-way wireless and/or wireline communications, and mine-safety solution. iPMine, iPTerra’s flagship product, allows mine operators to communicate, track, locate, identify, and monitor miners and equipment. iPTerra is pre-revenue.
Seven Arts CEO Kate Hoffman stated: "In light of the difficult conditions in the motion picture industry, our management team developed a strategic plan to diversify our business to include video streaming and wireless communications which are becoming more prevalent in the film and music industries. We believe these two acquisitions will broaden our business plan and position Seven Arts for future growth with a diversified revenue stream. Seven Arts is committed to expanding its inventory of operating subsidiaries, and will continue to look for complementary opportunities to vertically integrate its portfolio of film, music, and wireless assets."
Pursuant to the Agreement, Seven Arts will acquire all the capital stock of iPTerra and all the membership interests in Aeronetworks from Sanwire in return for the Company’s Series D Preferred Stock converting into approximately 40% of the Company’s common stock and assumption of approximately $2,905,000 in convertible notes. Aeronetworks and iPTerra will operate as wholly owned subsidiaries of Seven Arts.
Post closing and pursuant to the Agreement, Mr. Rick Bjorklund, Sanwire’s current chairman of the board, will be appointed as Seven Arts’ new Chief Executive Officer, and Mr. Robert La Salle as Chief Financial Officer. The Company’s new board of directors will be (a) Mr. Rick Bjorklund (director and chairman), (b) Mr. Bob Riggs (independent), and (c) Mr. Anthony Hickox (independent).
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