Seven Arts Entertainment Inc. (OTCQB: SAPX) ("Seven Arts" or the "Company") became aware that the public relations agency of an entity known to the Company only as "IFSG" has issued defamatory and fraudulent statements regarding the activities of the Company at the recent Cannes Film Festival. IFSG is unknown to the Company, and the Company has not been able to locate any office or registered address. IFSG may be an assignee of another entity that may have invested a limited amount of money in a motion picture project of Seven Arts Pictures plc ("PLC"), the Company's listing predecessor, which is in a creditor's liquidation proceeding in England. The Company believes that any claims of that entity would be only as an investor in the project, and any claims would need to be presented in respect of PLC in the United Kingdom, including any claims with respect to affiliates of PLC.
- The possible investor has no liens whatsoever on the distribution proceeds of any produced and distributed Seven Arts motion pictures and no distributors, of course, have any liability whatsoever to the investor.
- The single possible investment was done on a private basis as co-producer is not a "fraudulent investment scam" in any sense of the word, and all risks were properly disclosed to the one investor who was a personal friend of the director.
- All monies invested in the development and pre-production of motion picture projects by PLC were used as intended.
- There is no investigation of the possible investment in the motion picture project by any agency in the United States, the United Kingdom or elsewhere.
- The claims against PLC resulting in its liquidation had not been made and were not made until the summer of 2011. Of course, these claims were unknown to PLC when the investment by Altitude was made in the fall of 2009, as is a matter of public record.
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