LOS ANGELES, CA, United States, via ETELIGIS INC., 05/11/2015 – – Seven Arts Entertainment Inc. (now known as Wireless Connect Inc.) (“Seven Arts” or the “Company”) (OTC Pink: SAPX) (PINKSHEETS: SAPX), a diversified company with motion picture production assets and wireless communications, is pleased to announce the execution of a definitive Letter of Intent (“LOI”) with The Movie Studio Inc. (“TMS”) (OTC Pink: MVES) (PINKSHEETS: MVES), whereby TMS will acquire the Company’s 60% membership interests in Seven Arts Filmed Entertainment Louisiana LLC (“SAFELA”) which is the owner of distribution rights to thirteen motion pictures (“SAFELA Library”). The acquisition is expected to close upon completion of the due diligence process. Post acquisition, SAFELA will operate as wholly owned subsidiary of TMS.
Under the terms of the LOI, the total consideration for the purchase of the SAFELA Library will be (a) $750,000 in the form of a new issue of TMS preferred voting stock convertible to TMS common stock with a conversion price of the three (3) day volume weighted average of the last sale price of TMS common stock prior to the date of conversion of any shares of preferred stock; and (b) the SAFELA subsidiary will assume approximately $2,000,000 in the Company’s convertible notes. In addition, Seven Arts has granted TMS an interim exclusive distribution rights to market the SAFELA Library for sixty (60) days, including the Cannes Film Festival, being held in France starting on May 15, 2015.
Rick Bjorklund, CEO and Chairman of Seven Arts, stated, “We continue to explore ways to strengthen our balance sheet and increase shareholder value. Upon closing of this deal, Seven Arts balance sheet will improve in two ways; the removal of approximately $2,000,000 debt and the monetization of our movie library assets. Post closing, I plan on presenting to our management team and board members a proposal to declare a onetime special dividend to our shareholders. The dividend will be a portion of The Movie Studio’s Preferred Stock. The balance of the Preferred Stock will be monetized over time to fund our operation to accelerate our expanded business plan.”
“The SAFELA movie library consists of films with Hollywood iconic movie stars as John Goodman, Tom Sizemore, John Malkovich, Burt Reynolds and others. The distribution agreements on the SAFELA movie libraries include, but not limited to, MGM, Lionsgate, First Look and others,” said Gordon Scott Venters, President and CEO of The Movie Studio. “The foregoing major acquisition begins TMS’s growth by acquisition strategy and integration of other completed movies allowing us to bundle the films for foreign and domestic distribution in available territories, while seeking negative pick-up and pre-sale agreements on our motion pictures in development.”
About The Movie Studio Inc.
The Movie Studio Inc., an integrated motion picture production company, develops, manufactures, and distributes independent motion picture content for worldwide consumption on various devices (www.themoviestudio.com)
About Seven Arts Entertainment Inc.
Seven Arts Entertainment Inc. is a global diversified company with wireless communications and motion picture production assets. Seven Arts vertically integrated portfolio of solutions target a diverse array of enterprises and multiple disciplines. Seven Arts has 60% membership interests of Seven Arts Filmed Entertainment Louisiana LLC, which holds all rights to Seven Arts movie assets; 100% of iPTerra Technologies Inc., a designer, developer, manufacturer and marketer of a real-time 2-way wireless and/or wireline communications and mine-safety solution for the global mining industry (www.ipterra.net); and 100% of Aeronetworks, a provider of advanced communications and broadband services to niche markets including entertainment venues, rural communities and Native American tribes (www.aeronetworks.net).
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 May 11, 2015. 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.
Seven Arts Entertainment Inc.
Rick Bjorklund, Chairman and CEO
The Movie Studio Inc.
Gordon Scott Venters, President and CEO
SOURCE: Seven Arts Entertainment Inc.