Seven Arts Entertainment Inc (OTC:SAPX) Stock Soars on Above-Average Volume

Investors who might be looking into volume winners this morning may have noticed that the Seven Arts Entertainment Inc. (OTC:SAPX) stock has emerged as a major winner. The stock went up by as much as 33% on the back of huge trading volume, and it would be interesting to see how it ends the day. More than 22.29 million shares traded hands, well above its average volume of 4.95 million shares.

However, it is also important to note that there has been no news about the company this morning. That being said, investors could do well to keep in mind that on November 8, Seven Arts made a significant announcement. At the time, the company announced that it had inked a letter of intent for the acquisition of THC Music and Films. In the news release that was published at the time by the company, it was revealed that THC Music and Films was controlled by Thom Hazaert, a director at Seven Arts.

Seven Arts stated that since Hazaert had taken up a leading role at the company, the management concluded that it was the logical move to acquire THC Music and Films. As per the provisions of the agreement, the acquisition was going to be completed through the issuance of already authorized preferred shares in Seven Arts.

Through such a move, there would be no dilution in the share structure. In the same news release, Seven Arts also revealed that it had also started working on the reconstruction of its website, sevenartsentertainment.com, in order to provide a better idea of its business trajectory.