Sycamore Entertainment Group Inc (OTCMKTS:SEGI) shares were up more than 70% at the start of the week but dropped 42.86% in the latest US session to $0.00040. The company has a market cap of $971K at 1.39 billion shares outstanding. Share prices have been trading in a 52-week range of $0.00 to $0.00.
Last week, Sycamore Entertainment Group announced that it has executed a “film rights purchase agreement” with top Hollywood producers and was required to put $1.5 million in escrow to secure the deal while the production financing agreement is being negotiated with the studio.
“We are excited to be working some of the best talents in Hollywood,” says Edward Sylvan, CEO of Sycamore Entertainment Group. “Our arrangement with LDJ Capital called for us to bring ‘best in class’ projects to the table, I feel we are accomplishing these objectives. We are looking forward to the time when we are able discuss the project in more detail.”
“With the working capital in hand we are in the best position to increase shareholder value by spending on corporate marketing and executing on our lineup of film and TV projects,” Sylvan continued.
However, the gains were quickly reversed midweek when Sycamore Entertainment Group announced that they will apply a self-imposed share structure lockout for a minimum of 60 days. This means that there will be no issuances of new shares, nor will there be any increase to the authorized share capital over the period. Also, Sycamore Entertainment Group will not be engaging in any reverse split at any time whatsoever.
“It is my opinion, that the current issued and outstanding is ideal to encourage liquidity and allows investors of all sizes to participate in our market,” the statement from the CEO indicated. “These actions are to provide traders and investors with the confidence that they can participate in Sycamore and not have the share value be eroded due to unnecessary dilution.” The company will also complete their reporting requirements during the lock-out period.
Sycamore Entertainment Group is an independent film marketing and distribution company that specializes in the acquisition, distribution and development of marketing campaigns. It focuses on participating in various other streams related to filmed entertainment content distribution, as well as various other activities related to funding the print and advertising of acquired feature films.
The company’s film marketing and distribution operations include film acquisitions, publicity, print advertising, billboard advertising, film distribution and online marketing. It offers services, including acquiring films; publicity and public relations, and online content writing and search engine optimization services. It provides distribution services for release commercial films. It represents independent film companies that create domestic and foreign feature films. Its operations include Film Library Development, Distribution, Print and Advertising Fund, and Production.