Seven Arts Pictures Plc Nasdaq: SAPX on Level Stock.com

Seven Arts Pictures Plc. Nasdaq:SAPX

Seven Arts Pictures Plc (Nasdaq: SAPX) an independent motion picture production company engaged in developing, financing, producing and licensing theatrical motion pictures with budgets in the range of $2 million to $15 million for exhibition in domestic (i.e. the United States and Canada) and foreign theatrical markets and for subsequent post-theatrical worldwide release in other forms of media, including DVD, home video, pay-per-view, and free television. We endeavor to release many of our motion pictures into wide-theatrical exhibition initially; however, certain of our motion pictures will either receive only a limited theatrical release, or may even be released directly to post-theatrical markets, primarily DVD. Those pictures that receive either a limited theatrical release or a post-theatrical release typically benefit from lower prints and advertising (“P & A”) costs and, in turn, may enjoy greater gross profit margins.

Since 1996, the Company and its predecessors have produced 16 motion pictures (13 of which have been released) and have acquired rights to an additional 28 motion pictures. Ten of these motion pictures are controlled by ContentFilm. As a result, Seven Arts currently has a library of 33 completed motion pictures. Twelve of these 33 motion pictures are controlled by Arrowhead Target Fund Ltd., a former hedge fund investor, which receives all of the revenues from these pictures. A substantial portion of the Company’s library revenues are derived from only a few of its library titles. Through a combination of new productions and selected acquisitions, Seven Arts plans to increase its film library to 50 to 75 pictures over the next five years.

Strategic Growth

    • Finance, produce and distribute two to four motion pictures in-house per year with budgets between $2 million and $15 million each. As previously stated, the Company expects that certain of these pictures will receive only a limited theatrical release, while others will be released more widely.

    • Supplement Seven Art’s core strategy by producing an occasional higher cost motion picture (production budgets of $30 - $50 million). The Company will, in all likelihood seek to co-produce such projects with a major studio to guarantee a studio-wide release and obtain a commitment to cover a portion or all of P&A costs.

    • Opportunistically acquire distribution rights to an additional two to five motion pictures produced by others, each year, for distribution in theatrical, video and television markets, as an agent, for a 15%-20% fee.

    • Maximize the Company’s current use of tax-preferred financing structures around the world to fund motion picture productions.

    • Continue to reduce Seven Arts’ financial risk on motion pictures produced in-house, by pre-selling certain rights to distributors prior to and during production, while recognizing that, particularly in the last two years, the pre-sale market has become more difficult to access as a film financing tool.

    • Enter into partnerships with theatrical and video distributors, to gain more control over and increase the Company’s share of revenue from the distribution of its motion pictures.

    • Scale business over time by modestly increasing the number of pictures developed and produced in-house as well as by more aggressively seeking to acquire for distribution motion pictures produced by third parties.

LevelStock.com is a premier provider in tracking penny stocks daily in the stock market. We specialize in emerging growth stocks in Small Cap, OTC Bulletin Board and Pink Sheet Stocks. LevelStock.com offers Hot Penny Stock Alerts and Penny Stock Newsletters to our members. Join Us Today! Registration is Completely Free.