Empire Post Media (OTCBB:EMPM), the Los Angeles-based 3D TV entertainment company, has issued the following letter to shareholders from the Chairman of the Board and CEO, Mr. Peter B Dunn.
Due to recent market activity and pressure on the company's share price, it seems appropriate to bring you up to date on what Empire is doing and what we intend to do in the near term to further the company's business plan.
Empire Post Media, Inc. has completed its previously announced review of recent trading activity and has concluded that its common stock is currently undervalued. Therefore, the Company believes that it is advantageous at this time to commence a stock buy-back program. With this in mind, Empire's Board of Directors has authorized the repurchase of up to 10,000,000 of Empire's outstanding Common Stock in the open market or through privately negotiated transactions. It is hoped that the buyback program will have a positive effect in stabilizing our share price.
Management will direct the program and all purchases will be based on market conditions, working capital requirements, general business conditions and other relevant factors. If conditions are not favorable, then no purchases will be made. The program is set to expire on July 30, 2012 but may be extended if market conditions warrant.
This program will be funded using available cash and borrowings from Empire's existing credit facility or third party financing. If any shares are purchased they may be retired or they may be made available for employee benefit plans or other appropriate purposes.
As to our business, Empire has multiple projects in various stages of development, which is the entertainment industry process for taking a raw creative idea and moving it into production. Three of the company's projects have already made significant progress in this process:
“Journey Beyond,” which was created and developed by the principals of Empire's wholly owned subsidiary, Hybrid-Reality Entertainment, has been produced in a variety of formats, both 2D and 3D, for different broadcast outlets, here and overseas. This is the first television project that Empire is distributing on its own and is currently in the process of being presented to several different cable networks. “Journey Beyond” explores psychic and paranormal experiences, based on real stories from real people.
“Yamashita's Gold,” a movie for TV based
on the search for World War II buried treasure, is intended to be filmed at the end of the year in 3D. Work is progressing on script development, location selection and preliminary casting.
“A Fairway to Heaven” is being developed as an e-book, based on the English television special and DVD release picturing an ideal golf course of eighteen holes selected from the world's greatest golf courses by a panel of golf course architects, writers and professional golfers. The e-book will feature text, interviews, video and interactive segments in 3D. The first chapter will be available for viewing on Empire's website shortly.
The company is also in discussions for a production, financial and ownership participation in a cable network series that is projected to be on the air before the end of the year. Other Empire development projects are moving forward, with details to be announced shortly.
In closing, both the buyback and our continuing efforts with our 3D entrainment projects exemplify our strategic objective to strengthen both the business and shareholder value of Empire Post Media for 2012 and beyond. We deeply appreciate your faith in our ability to make 2012 a year of transformation and growth.
Peter B. Dunn
Chairman of the Board and Chief Executive Officer
Further information about Empire Post Media can be obtained from the company's web site, www.empirepostmedia.com.
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words “plan,” “confident that,” “believe,” “scheduled,” “expect,” or “intend to,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings.