BigStar Entertainment Appeals Potential Delisting Action
NEW YORK–(BUSINESS WIRE)–Dec. 14, 2000
BigStar Entertainment Inc. (Nasdaq:BGST) today announced that Nasdaq has accepted the company’s appeal for a hearing regarding the pending delisting of the company’s common stock.
The initial notification from Nasdaq and the pending delisting is based upon the bid price of the company’s common stock closing below $1.00 for 30 consecutive trading days. The company has also received notification from Nasdaq pertaining to the failure of its common stock to maintain a minimum market value of public float of at least $5,000,000 for 30 consecutive days.
Pursuant to the rules of the appeal process, the company’s common stock will not be delisted pending the hearing’s outcome. A hearing date has been scheduled for Jan. 11, 2001.
As previously announced, the company’s board of directors has engaged BNY Capital Markets Inc., a division of The Bank of New York, as its financial adviser to assist in evaluating strategic opportunities that could enhance the company’s business objectives and increase shareholder value.
BigStar has received inquires regarding a possible sale and/or strategic business combination. The company has not agreed on terms with any party, including a price for any investment in or acquisition of all or part of the securities of BigStar Entertainment. There can be no assurance that the company will enter into any transaction or any agreement on satisfactory terms or if such agreement is entered into that it will be consummated.
BigStar Entertainment Inc. (http://www.bigstar.com) is a leading Shop-A-Tainment(TM) destination site, based on internal analysis of traffic, sales and other metrics. bigstar.com is exclusively dedicated to filmed entertainment products, selling more than 45,000 videos and digital video discs (DVDs).
In addition, the company’s Advaya Inc. division offers digital direct marketing services for businesses and companies that want to communicate directly with their customers online, a $160 billion industry. Advaya provides a variety of e-marketing services and products to its customers including a personalized, targeted e-messaging and e-mail service.
Through its proprietary Web-based software tool and client services team, Advaya enables clients to manage their subscriber databases, build, schedule, test, send and analyze targeted messages to their users. Advaya also provides consulting services for building subscriber lists, developing creative digital direct marketing strategies and offers data warehousing services for clients. More information about Advaya Inc. can be found at www.advaya.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: BigStar Entertainment has included in this press release certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 concerning potential future events and developments affecting BigStar’s business, operations and financial condition. Examples of forward-looking statements include, but are not limited to, “can be,” “expects,” “may affect,” “may depend,” “believes,” “estimates,” “anticipates,” “projects” and similar words and phrases. Such forward-looking statements are subject to various known and unknown risks and uncertainties and BigStar cautions you that any forward-looking information provided by or on behalf of BigStar is not a guarantee of future performance. Actual results could differ materially from those anticipated in such forward-looking statements due to a number of factors, some of which are beyond BigStar’s control, in addition to those discussed in BigStar’s other press releases, public filings and statements by BigStar’s management, including (i) the highly volatile and competitive nature of the Internet industry, (ii) changes in domestic and foreign economic and market conditions, (iii) the effect of federal, state and foreign regulation on BigStar’s business, (iv) issues related to BigStar’s entry into new markets, and (v) the effect of any future acquisitions. All such forward-looking statements are current only as of the date on which such statements were made. BigStar does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. For a description of additional risks and uncertainties, please refer to BigStar’s filings made from time to time with the Securities and Exchange Commission.
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