Seven Arts Entertainment Announces Common Stock Trading Suspension by NASDAQ and Potential De-Listing
LOS ANGELES, CA, Jul 09, 2012 (MARKETWIRE via COMTEX) -- Seven Arts Entertainment Inc. ("Company" or "Seven Arts") -- The Company was advised at about 8.00am PDT today, 9th July, that NASDAQ has suspended trading in the Company's common stock and has made an initial decision to de-list the Company's common stock, both based on alleged violation of NASDAQ rules regarding notification of new share issuance and NASDAQ rules regarding stockholder approval of issuance of securities with voting rights potentially in excess of 20% of the outstanding common stock voting rights, in this case arising from the issuance of the Company's Series B Preferred Stock.
NASDAQ also raised questions concerning the Proxy Statement and the voting of shares at the Company's stockholder meeting on 27th March 2012 to be detailed in a letter to be delivered to the Company later today.
NASDAQ stated that trading may resume if the Company provides adequate disclosures on the issues raised by NASDAQ.
CEO Peter Hoffman stated: "We were surprised by the NASDAQ decision just communicated to us to suspend trading and to commence the process to de-list our common stock for what we viewed as technical issues regarding compliance with NASDAQ rules regarding stockholder approval of issuance of our Series B Preferred Stock. We will make all additional disclosures requested by NASDAQ and remain confident that the actions taken at the stockholders' meeting were pursuant to our articles, bylaws and Nevada Law. We will be appealing any decision to de-list the Company's common stock."
