Seven Arts Entertainment Inc (SAPX)

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For IMMEDIATE RELEASE MONDAY MORNING.

Lionsgate Studios announces they have cancelled they definite agreement with Screaming Eagle (NASDAQ:SCRM), and will do a reverse merger with Seven Arts Entertainment Inc (OTCMKTS: SAPX),

The new entity, Lionsgate Studios will be made up of the TV studio and film production portions of its parent Lionsgate Entertainment (NYSE:LGF.A, LGF.B) as well as its existing content libraries.

The combined company will trade separately from its parent’s stock once the deal is completed in the spring of 2024 with the new entity planning to up list to NASDAQ by the end of the second quarter.

The deal positions the standalone Lionsgate Studios as a platform-agnostic, pure play content company with a deep portfolio of franchise properties including The Hunger Games, John Wick, The Twilight Saga and Ghosts, a robust film and television production and distribution business, a leading talent management and production company and a world-class film and television library.

Existing Lionsgate shareholders are expected to own 87.3% of the spun-off entity at close with PIPE investors taking a 6.3% stake and public Seven Arts Entertainment INC shareholders 5.7%..

When asked for comment, why the definite agreement with Screaming Eagle was cancelled, an undisclosed source close to management said. "It was a conflict of created differences"..
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