Seven Arts Entertainment Inc. (OTC:SAPX) Stock In Focus After Acquisition News
This morning, a fairly large number of companies would be on the radars of investors, and one of the companies that could well be worth looking into at this point is Seven Arts Entertainment Inc. (OTC:SAPX). On November 8, the company was in the news cycle after it announced that it had inked a letter of intent pertaining to the acquisition of THC Music and Films.
It was a major new announcement from the company and one that could bring it into prime focus today. THC Films and Music, which is more popularly known as THC, is actually controlled by Thom Hazaert, who is a director at Seven Arts. THC boasts a proven track record of successful releases. The company noted in its press release that, due to the leading role of Hazaert in the company, it was only a logical step for Seven Arts to go for the acquisition.
As per the terms of the proposed agreement, the acquisition would be made through the issuance of Seven Arts’ preference shares, which had already been authorized. There would not be any dilution in the capital structure of the company. Concurrently, the company also announced that it had also started working on a revamp of its website, sevenartsenetertainment.com, so as to reflect the current situation.
The company noted that the new site would be launched at some point in December 2023. Seven Arts revealed that it had been tapped up by a number of large production companies pertaining to proposals for buyouts. The company noted that the potential acquisition of THC and the boosting of its portfolio would help in providing it with a stronger footing when it went into such negotiations.
The first announcement about a business relationship with THC was made by Seven Arts on August 30. At the time, the company announced that it had entered into a multifaceted joint venture agreement with THC Music and Films. In this context, it ought to be noted that Hazaert had been brought to the company with the aim of overseeing content acquisition for Seven Arts, among other things. At the time, it was noted that his role inside Seven Arts had been expanding.
For instance, he had taken up a major role in managing the Dolby Atmos facility of the company meant for serving the film community based out of Atlanta. In the news release, the company also noted that, given the fact that Hazaert held more than a quarter of a century of experience in the film and music industries, he was expected to eventually turn into a major force at Seven Arts. The first collaboration between the two entities on the back of the joint venture agreement was announced to be the release of SC/SRSS, a new TARPOOT album. Tarpoot was established in 1997 in Ann Arbor, Michigan, and its debut album, titled Gift, was released in 2000 by Atlantic Records. Following the release of the debut album, the group made a number of touring appearances.
