LOS ANGELES, CA – May 11, 2015 – Seven Arts Entertainment Inc. (now known as Wireless
Connect Inc.) (OTC: SAPX) (“Seven Arts” or the “Company”), a diversified company with motion
picture production assets and wireless communications, is pleased to announce the execution of a
definitive Letter of Intent (“LOI”) with The Movie Studio Inc. (OTC: MVES) (“TMS”); whereby, TMS
will acquire SAPX's 60% membership interests in Seven Arts Filmed Entertainment Louisiana LLC
(“SAFELA”), which is the owner of distribution rights to thirteen motion pictures (“SAFELA Library”).
The acquisition is expected to close upon completion of the due diligence process. Post-acquisition,
SAFELA will operate as wholly owned subsidiary of TMS.
Under the terms of the LOI, the total consideration for the purchase of the SAFELA Library is: (a)
$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 of any shares of preferred stock; and (b) the SAFELA
subsidiary will assume approximately $2,000,000 in the Company’s convertible notes. In addition, Seven
Arts has granted TMS an interim exclusive distribution rights to market the SAFELA Library for sixty
(60) days, including the Cannes Film Festival, being held in France starting on May 15, 2015.
Rick Bjorklund, CEO and Chairman of Seven Arts, stated: "We continue to explore ways to strengthen
our balance sheet and increase shareholder value. Upon closing of this deal, Seven Arts balance sheet
will improve in two ways; the removal of approximately $2,000,000 debt and the monetization of our
movie library assets. Post-closing, I plan on presenting to our management team and board members a
proposal to declare a onetime special dividend to our shareholders. The dividend will be a portion of The
Movie Studio’s Preferred Stock. The balance of the Preferred Stock will be monetized over time to fund
our operation to accelerate our expanded business plan.”
Upon completion of the acquisition, the SAFELA movie library consisting of films with Hollywood
iconic movie stars as John Goodman, Tom Sizemore, John Malkovich, Burt Reynolds and others. The
distribution agreements on the SAFELA Movie Libraries include, but not limited to, MGM, Lionsgate,
First Look and others. The foregoing major acquisition begins TMS's growth by acquisition strategy
and integration of other completed movies allowing us to bundle the films for foreign and domestic
distribution in available territories, while seeking negative pick-up and pre-sale agreements on our
motion pictures in development, “Gordon Scott Venters, President and CEO of The Movie Studio
announced today”.
About The Movie Studio Inc.
The Movie Studio Inc., an integrated motion picture production company, develops, manufactures, and
distributes independent motion picture content for worldwide consumption on various devices
(www.themoviestudio.com)
About Seven Arts Entertainment Inc.
Seven Arts Entertainment 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 has 60% membership interests of Seven Arts Filmed
Entertainment Louisiana LLC, which holds all rights to Seven Arts movie assets; 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 advanced communications and broadband services to niche
markets including entertainment venues, rural communities and Native American tribes
(www.aeronetworks.net).
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. The information contained in this release is as of May [11], 2015. Seven Arts
assumes no obligation to update forward-looking statements contained in this release as the
result of new information or future events or developments.
Contact:
Seven Arts Entertainment Inc.The Movie Studio Inc.
Rick Bjorklund, Chairman and CEOGordon Scott Venters, President and CEO
rick@aeronetworks.netGSV@themoviestudio.com