(BSNS WIRE) Imperia Entertainment President Issues Response to Inquiries Rega
ding Planned Reverse Split
Imperia Entertainment President Issues Response to Inquiries Regarding Planned R
verse Split
Business Editors
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--June 6, 2006--
In response to numerous investor inquiries regarding the
board of directors' proposal for a reverse split to be put to a vote
of shareholders at a special meeting of shareholders on June 12, 2006,
Imperia Entertainment, Inc.'s (Pink Sheets:IPRE) president, James
Hergott has issued the following statement:
A reverse split does not change the value of the company. A
reverse split will reduce the number of shares outstanding and the
price will be readjusted upward by the NASDAQ Stock Market by the same
ratio as the split based on the last market trade before the split is
effected in the marketplace by NASDAQ. Investors do not lose any value
unless the market price subsequently goes down, and that is determined
by the market and could happen whether there is a split or not. The
reason for the market's reaction to the news yesterday is more likely
investor perception that the split is a bad thing or the company is
not viable. That perception is based on the fact that many companies
that reverse split do so in order to sell shares of the company. The
company is a viable company and has many film projects in development,
three completed films and TV series, and one film in post production.
Imperia does not plan to do another Regulation D Rule 504 offering,
and is prohibited from doing so because in the past twelve months it
has raised the maximum allowed under Rule 504, and we have no
intention of doing another 504 offering. The board of directors
believes that the company's stock is seriously undervalued and has
proposed a split to reduce the amount of outstanding shares due to the
massive dilution that was incurred when the market price was not
strong, in order to increase the liquidity of the company's stock,
make it more attractive to larger traders and institutional investors,
and position it to trade on more attractive markets than the pink
sheets. Despite all the positive developments that have been
announced, such as the completion of our second feature film, the
positive reaction to it at the Cannes Film Market, the closing of our
Regulation D, Rule 504 offering and announcement that we would not do
another for at least a year, if at all, the acquisition of another
trading company to launch our new family film "Whiskers," and the
launching of our newest mixed martial arts movie, "Never Submit," and
the positive reaction to it by sponsors, product placement
advertisers, and mixed martial arts enthusiasts, the company's stock
still trades at the sub penny level. A reverse split will correct this
and allow for company expansion.
AI
