Seven Arts Entertainment Inc. (SAPX.OB) announced Wednesday that its Board has appointed an independent committee and is in discussions with a financial advisor to explore the possibility of a sale of the company or its assets or the possibility of a merger as the best method to maximize stockholder value and to ensure retirement of all the Company's convertible debt securities.
The company said it is in discussions with an investment advisor to advise the Board throughout this process.
The company noted that it intends to continue all of its operations on a business as usual basis during this period. The recent market capitalization of the Company and the outstanding convertible debt securities are less than 25% of the Company's book value, and the Board believes the Company or its assets would offer an attractive opportunity for an appropriate buyer.
The company stated that in connection with the Board's decision, Peter Hoffman has taken a leave of absence as chief executive officer of the Company, effective today, for the next six months to seek opportunities for the Company and to assist as a producer of the Company's motion picture projects. Hoffman has waived his right to salary during this period, but will retain all other benefits of his employment agreement with the Company.
The company said that Hoffman will be available to the Company as a consultant at no charge and will continue to act as counsel for the Company on various legal matters, for which he will be separately compensated. Kate Hoffman has been appointed as acting Chief Executive Officer during this period. Vince Vellardita will continue as President and Chairman.
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