Tuesday, July 10, 2012

SAPX - Shares Halted

I think the chart says it all.

NEW YORK--Seven Arts Entertainment Inc. (SAPX) said it was informed by the Nasdaq Stock Market on Monday that the exchange suspended trading in its shares and made a preliminary decision to delist the stock.
The move came as the independent film production and distribution company said it was informed by Nasdaq that it had violated rules related to new share issuance. Seven Arts said Nasdaq also raised questions related to the film company's March shareholder meeting.
Seven Arts Chief Executive Peter Hoffman said in a statement that the company was surprised by the Nasdaq decision to suspend its shares and begin the delisting process for what the film company viewed as "technical issues" regarding compliance with Nasdaq rules tied to stockholder approval of the issuance of Series B preferred stock.
Nasdaq alerted traders of suspended trading at 11:19 a.m. EDT. A subsequent news release from Nasdaq said trading in Seven Arts would remain halted until the company "has fully satisfied Nasdaq's request for additional information." A Nasdaq spokesman declined to comment on whether the exchange operator is taking action to delist the stock.
Seven Arts plans to provide additional information required by the stock exchange and remains "confident that the actions taken at the stockholders' meeting were pursuant to our articles, bylaws and Nevada Law," Mr. Hoffman said.
The company plans to appeal any decision to delist its shares, he stated.
The exchange, part of Nasdaq OMX Group Inc. (NDAQ), said trading in the shares will be halted until its request for information has been fully satisfied.
Shares were trading at four cents, up 0.5% on the day, when halted Monday morning. The stock has lost 96% of its value in the past year.

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