HOLLYWOOD, FL–(Marketwired – Oct 1, 2015) – In the news release issued earlier today by The Movie Studio, Inc. (OTC PINK: MVES), we are advised by the company that the headline should read “The Movie Studio, Inc. Completes Acquisition of 60% Membership Interest in Thirteen Motion Pictures From Seven Arts Entertainment, Inc.” rather than “The Movie Studio, Inc. Completes Acquisition of 60% Interests in Thirteen Seven Arts Entertainment, Inc.” as originally issued. Complete corrected text follows.
The Movie Studio, Inc. Completes Acquisition of 60% Membership Interest in Thirteen Motion Pictures From Seven Arts Entertainment, Inc.
HOLLYWOOD, FL — Oct 1, 2015 — The Movie Studio, Inc. (OTC PINK: MVES) (“TMS” or the “Company”), a vertically integrated motion picture production and distribution company with completed motion picture and production assets, has completed the acquisition of Seven Arts Entertainment Inc.’s (“SAE”) 60% membership interests in Seven Arts Filmed Entertainment Louisiana LLC (“SAFELA”). SAFELA is the owner of distribution rights to thirteen motion pictures (“SAFELA Movie Library”). Post acquisition SAFELA will operate as Safela, Inc., a wholly owned subsidiary of TMS, and will continue to manage and service all existing contracts and distribution channels. In addition, TMS and SAFELA will cooperatively pursue new markets and distribution channels for the SAFELA Movie Library.
Under the terms of the acquisition, TMS has paid SAE $750,000 in the form of a new issue of TMS preferred voting stock convertible to TMS common stock with a conversion price of the three (3) day volume weighted average of the last sale price of TMS common stock prior to the date of conversion; and TMS has assumed approximately $2,000,000 in SAE’s convertible notes.
The SAFELA Movie Library consists of films with Hollywood iconic movie stars such as John Goodman, Tom Sizemore, John Malkovich, Burt Reynolds and others. The distribution agreements on the SAFELA Movie library include, but not limited to, MGM, Lionsgate, First Look and others.
This acquisition represents a major milestone in TMS’s growth by acquisition strategy and integration of other completed movies allowing the Company to bundle the films for foreign and domestic distribution in available territories. In addition, TMS will capitalize on existing relationships to conclude sale agreements on its completed motion pictures and the ones in development.
“We are pleased with the completion of this transaction which will support our expanded vision and business growth, organically and thru acquisitions,” stated Gordon Scott Venters, President and CEO of The Movie Studio. “Moving forward, the SAFELA Movie Library will provide us with the ability to pollinate our current business and revenue model with SAFELA’s recurring revenue income, creating an exceptionally well-balanced residual value and improved shareholder equity.”
Rick Bjorklund, CEO and Chairman of Seven Arts, stated: “The closing of this transaction represents a pivotal milestone for us. Moving forward, our focus will be on digital media and wireless communication as a delivery mechanism. In addition, we’ll continue to support The Movie Studio in its endeavor to promote the SAFELA movie library.”
About The Movie Studio Inc.
The Movie Studio, Inc. is a vertically integrated motion picture production and distribution Company with completed motion picture and production assets. The Company acquires, develops, manufactures, and distributes independent motion picture content for worldwide consumption in theatrical, Video on Demand (VOD) and on various media devices. For more information, visit www.themoviestudio.com.
About Seven Arts Entertainment Inc.
Seven Arts Entertainment Inc. (now known as Wireless Connect Inc.) is a global diversified company with wireless communications and motion picture production assets. Seven Arts vertically integrated portfolio of solutions target a diverse array of enterprises and multiple disciplines. Seven Arts owns 100% of iPTerra Technologies Inc., a designer, developer, manufacturer and marketer of a real-time 2-way wireless and/or wireline communications and mine-safety solution for the global mining industry (www.ipterra.net); and 100% of Aeronetworks, a provider of wireless and wireline communications and broadband services to digital media, entertainment and sports venues, and underserved markets such as rural communities and Native American tribes (www.aeronetworks.net).
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