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PRXI - Premier Exhibitions


asw310

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I take a peek at it every few days...

 

I am surprised it is trading as high as $.90/share!

 

I don't think I've ever seen a clearer case of poor management whose interest works against shareholders.

 

The restrictions on the Titanic artifacts clearly impair their value. 

 

They've got competition...

 

They get paid big kash...

 

Barring some type of sudden interest in the artifacts from a huge money source (China?), I just don't see how this ends well for shareholders.

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During the Arnie Geller era, Premier's lawyers fought tooth and nail to get permission to sell off pieces of the Titanic collection.  The judge denied them and actually hated Premier's lawyers for constantly trying to get permission to do that.  One of the VIC (valueinvestorsclub.com) writeups link to a court document where all of that is described.

 

Of course I never thought that Premier was a good long and shorted it for a small profit.

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http://www.sec.gov/Archives/edgar/data/796764/000117184314001184/newsrelease.htm

 

for the peeps still clinging to PRXI, should be an interesting call

 

cheers!

 

I'd imagine there's no way they'll have Q&A, so might not be as fun as it would be otherwise. My guess is that this company will have to revisit bankruptcy courts and have the rules on the ownership of Titanic assets changed before it can get sold.

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http://www.sec.gov/Archives/edgar/data/796764/000117184314001184/newsrelease.htm

 

for the peeps still clinging to PRXI, should be an interesting call

 

cheers!

 

Anticlimactic call. So they retained JPM. I wish management would stop pretending like anyone cares about the operating business.

 

What was the purpose of making it a conference call, instead of a press release? Seems like an enormous waste of time to have a call simply to announce that they hired JP Morgan

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  • 7 months later...

Thanks for the link.  I found the letter at the end somewhat interesting.  Looks like his nightmare is over.

 

Dear Partners:

 

Below is an excerpt from my letter dated May 31, 2013:

 

The saga of the Fund’s investment in Premier Exhibitions has been a long and interesting, and sometimes arduous, journey. The road has turned out to be longer than I thought it would be when we began the journey almost five years ago. I hope many of you will continue traveling with me until I can see things to a close. I want to thank all of you for your patience and support.

 

“Almost five years ago” has turned into “almost seven years ago.” But today I’m happy to announce that finally, we have entered into a deal to sell our entire position in Premier for $1.05 a share to the Armada Group, a company based in Florida. This represents a 42% premium to the stock price on the day of signing.

 

While I still believe in the underlying premise of our investment in Premier, the company continues to have significant unmet capital and operational needs to become successful. Unfortunately, the Fund and Sellers Capital are unable to fulfill those needs for Premier. In fact, the continued holding of our position may be an impediment to the company’s growth. The potential distribution of our shares (representing more than a year’s total trading volume) and the insufficiency of capital necessary to stabilize and grow the business may be holding back the stock price. As a result, the realization of greater value for the Fund’s investment is unlikely in any reasonably foreseeable time frame for the Fund. That is why I’ve decided to sell our block to Armada, as it is both willing and capable of purchasing the Fund’s investment outright on superior terms relative to current market conditions and Premier’s current status. In short, I believe that this is a prudent time to sell, and a fair and reasonable opportunity to do so.

 

We hope to close this sale by the end of October and will provide a distribution shortly thereafter. Over the next two weeks, we will be in contact with all of you to get account information so the proceeds of the distribution can be wired into your account. There will be a final, small distribution early next year after we complete the year-end accounting. We expect the funds and Sellers Capital will be closed down after this.

 

Please contact me with any questions you may have. Thank you.

 

 

Sincerely,

/s/ Mark Sellers III

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  • 4 weeks later...

Thanks for the link.  I found the letter at the end somewhat interesting.  Looks like his nightmare is over.

 

 

We hope to close this sale by the end of October and will provide a distribution shortly thereafter. Over the next two weeks, we will be in contact with all of you to get account information so the proceeds of the distribution can be wired into your account. There will be a final, small distribution early next year after we complete the year-end accounting. We expect the funds and Sellers Capital will be closed down after this.

 

Please contact me with any questions you may have. Thank you.

 

 

Sincerely,

/s/ Mark Sellers III

 

Maybe the deal is falling through..it was suppossed to close late October?

 

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http://www.mlive.com/business/west-michigan/index.ssf/2015/09/titanic_lawsuit_sellers_premie.html

 

I don't have a horse in this race but this has been an interesting saga!

 

Wow. I haven't paid attention to this for a while. It's much worse than I remember. I was once long, admitted it was a mistake when they took on debt in 2013, took a meaningful loss and moved on.

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  • 3 months later...

Well, some folks were thinking that this would be the year PRXI catches a break. They have a new CEO and board members so maybe things will go their way for once. Well, I hate to burst your bubble, but take a look at this filing today.

 

Item 8.01. Other Events.

On December 9, 2015, Premier Exhibitions, Inc. (the “Company”) entered into a Secured Promissory Note and Guarantee (the “Note”) with Mr. Yanzi Gao as agent for the lenders listed therein (the “Lenders”), with an aggregate principal sum not to exceed US$5,000,000. The Note provides that the Company will make draws of: (i) $1,000,000 on or before December 10, 2015; (ii) $1,000,000 within five business days after delivering written notice to the Lenders requesting the second draw, on or before December 18, 2015; and (iii) $1,000,000 within five business days after delivering written notice to the Lenders requesting the third draw, on or before December 31, 2015, provided in each case there is no event of default under the Note. The Note provides the Company may request an additional advance in the amount of $2,000,000 at any time during the term of the Note, provided the Lenders shall have the option to grant or deny the request in their sole and absolute discretion. The proceeds of the Note shall be used in the normal course of the Company’s business operations.

 

 

 

On January 4, 2016, the Company agreed to delay the second draw until January 15, 2016, and the third draw until January 28, 2016. Interest on these amounts would not accrue until the amounts were received by the Company. The Note otherwise remained unchanged and in full effect.

 

While the first $1,000,000 draw was timely made in accordance with the terms of the Note, the Company did not receive the $1,000,000 draw that was scheduled for January 15, 2016, and has not received the draw to date. The Company has provided notice to the Lenders of the failure to deliver this draw in accordance with the terms of the Note, and is in discussions with the Lenders to determine when and if the funds will be delivered to the Company.

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