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 - News) 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.
About Imperia Entertainment, Inc.
Imperia Entertainment, Inc. (www.imperiaentertainment.com) is a company which has emerged as a player in the area of independent film production and distribution, once monopolized by the major film studios. In conjunction with its distribution subsidiary, Imperia International Distribution, the company engages in investing in and producing and distributing full-length feature films. Along with its equity interest in the widely anticipated "All That I Need" (www.allthatineed.net), released in theaters last December and now on DVD, Imperia's film properties include its feature film "Say it In Russian," directed by Jeff Celentano ("Primary Suspect," "Gunshy") and edited by David Rawlins ("Saturday Night Fever"), "Brothers," by Tarquin Gotch ("Home Alone"), "Never Submit," a movie about mixed martial arts, and the award winning Autograph television series (www.autograph.tv) which airs on the Colours Television Network. Through its majority owned subsidiary, Muller Media, Inc., it also produces "Whiskers," by Jordan Klein ("Flipper," "Splash," "Cocoon").
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Imperia Entertainment, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Contact:
Imperia Entertainment Inc. James Hergott, 310-275-0089 or Vivian Fullerlove, 214-564-3359 (Public Relations) musbviv@yahoo.com
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