In Agreement With Major Shareholders Private Media Group Decides to Move to a European Stock Exchange
BARCELONA, Spain, Aug. 14 /PRNewswire-FirstCall/ -- Private Media
Group, Inc. (Nasdaq: PRVT), a worldwide leader in premium-quality adult
entertainment products, services, today announced the Company's decision to
explore moving to a European stock exchange, preferably the AIM market on
the London Stock Exchange.
AIM is the London Stock Exchange's international market for smaller
growing companies. The AIM is the world's most successful growth market and
it is especially designed to meet the diverse needs of small cap market
companies from around the world. The AIM is on one of the world's most
liquid capital markets for trading in shares of small and growing
international companies. Over 250 companies incorporated outside the UK(1)
are quoted on AIM, and the number is continuing to rise. This strong
international interest reflects the fact that AIM presents an ideal
environment for international companies looking to use a public market to
fund further expansion and raise their global profile.
Through the "Fast Track Route" to the AIM market, international
businesses already listed on any of the AIM Designated Markets, which
include the NASDAQ, can tap into the capital, liquidity and profile of the
London capital markets through a simple and speedy process.
Berth Milton, Chairman, President and CEO of Private Media Group, Inc.,
commented, "There are several reasons behind this decision, with one being
that most of our investors and businesses are located in Europe and against
this background we have been considering moving to the AIM list for several
years."
Mr. Milton continued, "Furthermore, we are extremely unhappy with the
treatment small cap companies get from the US market and US regulatory
bodies. During the past six months we have seen selling pressure on our
stock increasing as a result of naked short selling. In naked shorting,
traders who hope to profit from falling prices sell shares without
borrowing stock. Using that strategy, naked short sellers can drive down
prices by flooding the market with orders to sell shares they don't have.
In my opinion, making money from selling shares that you don't own, while
pushing down a company's share price, is absolute contrary to the whole
purpose of a public listing. It is not only our stock which is subject to
naked shorts. In June the number of US listed entities experiencing naked
shorts was more than 425 companies(2). In addition to the naked shorting
problem, we are also viewing the costly SOX 404 compliance as an
anti-small-cap-activity and this is another reason why moving seems like a
good idea and also a way of saving money."
Mr. Milton concluded, "Now that it is clear that the AIM market is here
to stay and that it is a very successful market for companies of our size
which are looking to grow, we have decided to explore making a move to this
market very soon."
Further announcements will be made in due course.
NOTES TO THE EDITORS
(1) The number of international companies on AIM does not include a large
number of companies who chose to come to the market as a UK incorporated
company but having the majority of their assets abroad.
(2) See Bob Drummond's Aug 4, 2006 Bloomberg article "Naked Short Sellers
Hurt Companies With Stock They Don't Have":
quote.bloomberg.com.
About Private Media Group
With its 40 year track record, NASDAQ listed Private Media Group is a
world leading adult lifestyle company which distributes a wide range of
erotic and semi-erotic multimedia content over several platforms, including
wireless and broadcasting technologies, narrow and broadband Internet, DVD
and Magazines. Private Media Group also licenses its Private and silver
girls trademarks internationally for a range of luxury consumer products
and owns the worldwide rights to the largest archive of high quality adult
content in the world, which it distributes all over Europe, North America,
Latin America, South Africa, New Zealand, Australia and Asia.
Disclaimer
This release contains, in addition to historical information,
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, which reflect the Company's current
judgments of those issues. However, because those statements are
forward-looking and apply to future events, they are subject to such risks
and uncertainties, which could lead to results materially different than
anticipated by the Company.
For further information please contact:
Johan Gillborg
Chief Financial Officer
Private Media Group
Tel +34 93 590 70 70
johan.gillborg@private.com
SOURCE Private Media Group, Inc.
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