SAPX the RAT Exposed.
Seven Arts Entertainment Inc. Announces Warrant Dividend
10:00a ET December 17, 2012 (PR NewsWire)
Seven Arts Entertainment Inc. (OTCQB: SAPX) ("Seven Arts" or the "Company") reaffirmed today that it will issue one warrant ("Warrants") for each ten shares of its common stock (calculated immediately prior to the Company's reverse split on September 4, 2012) as a dividend to stockholders who owned shares of common stock on August 31, 2012, which serves as the record date. The Warrants will expire on June 30, 2014 and will be exercisable at $.03. The Warrants, as modified, replace the warrants preliminarily described by the Company in its September 4, 2012, press release and represent substantially improved terms over the prior announced terms. The Company plans to file a registration statement with the Securities and Exchange Commission in the near term, which, when effective, will permit public trading of the common stock issuable upon exercise of the Warrants. The Warrants themselves will not be transferrable or tradable and will be distributed to stockholders and become exercisable upon the effectiveness of such registration statement. The Company will not issue fractional warrants or pay cash in lieu thereof and will round all fractions down to the next lower ten pre-split shares.
Chief Executive Officer Peter Hoffman stated, "We are pleased to distribute to our loyal stockholders a warrant dividend exercisable at $.03. This dividend, we hope, will permit our stockholders to participate in what we believe will be the continued growth of the Company as we execute our announced business plan for this year and to offset in part the losses arising after the Company's reverse split on September 4, 2012 due to substantial short selling, as previously announced."
Cautionary Information Regarding Forward-Looking Statements.
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated. The information contained in this release is as of December 17 2012. Seven Arts assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.
Contact:
Seven Arts Entertainment Inc.Peter Hoffman 323-372-3080 phoffman@7artspictures.com
The important bits are in bold:
1 - that excludes most of those suckered in before the RS
2 - the warrants are not registered yet, and may never be, and SAPX won't tell you any bad news
3 - 3c is still more than this stock is likely to be worth
Let us be clear: this is one sad attempt to hold the stock price at 3c so they can issue the 249,000,000 new shares (or 17 BILLION old shares) that they are going to ask the "shareholder meeting for".
That is about $7.5million of 'conversion' of debt to equity and represents a total washout of current shareholders.
Did you notice that the VOTERS at that Shareholder meeting include all those who got shares up to end October 2012, that is many millions of shares more than were around in August.
Smell that rat. Take a good deep breath. Smells like rat. Looks like rat. Probably is a rat.
It is a clever ruse, I grant them that.
AI
