Seven Arts Pictures PLC (NASDAQ: SAPX) ("Seven Arts") today announced it has executed an agreement for the acquisition of all of the capital stock of Big Jake Music ("BJM"), a newly formed record and multi-media entertainment company, for $5,000,000 of convertible preferred stock, convertible into common stock at a premium to the market price at closing, and which is not subject to conversion for agreed periods of time.
Seven Arts expects that BJM will also release sound tracks of Seven Arts films, commencing with the soundtrack albums for Night of the Demons (a film released in October of last year) and Pool Boys (expected to be released in September, 2011).
The music label acquisition has been approved by the Board of Directors of both Seven Arts and BJM. Completion of the acquisition is subject to customary conditions in transactions of this type, including due diligence review by Seven Arts' auditors of the assets and balance sheet of BJM. The parties expect the acquisition of BJM will be completed on or before September 30, 2011.
"Big Jake Music will be an exciting acquisition for Seven Arts Entertainment," said Peter Hoffman, CEO of Seven Arts. "In addition to the music label's artists, there are numerous cross marketing opportunities with our films, including the promotion and release of movie soundtracks, music video production, distribution and red carpet events."
Big Jake Music currently owns $5,000,000 in net value of media credits from News USA, a national media, marketing and publicity firm. Seven Arts expects to be using these media credits to promote its motion pictures/soundtrack albums and releases of Big Jake Music with a strategic combination of traditional print, radio, internet, and social media outlets. Seven Arts expects to distribute its music recordings and motion picture soundtracks principally through online, widely available digital transmission platforms, including iTunes, Amazon, Rhapsody, Napster, Nokia, Livewire and Spotify.
About Seven Arts: Seven Arts Pictures PLC was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production, and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.
About Big Jake Music: Big Jake Music is a newly-formed independent music label and entertainment company whose strategy is to acquire and own the right to distribute sound recordings and musical compositions of music artists and of albums and singles derived from motion picture soundtracks.
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.