Following is a statement Pure Play has issued to clarify and provide additional information about the proposed stock sale:
“As we have stated before, we submitted a Form SB-2 Registration Statement with the Securities and Exchange Commission to register for resale shares of our common stock held by some of our existing stockholders, and subsequently to become a reporting issuer in the United States. We are not attempting to register shares for sale by the company to raise funds. The review process of our Form SB-2 by the SEC may take several months. The timeliness of this process is at the sole discretion of the SEC, and our ability to respond to the SEC reviewers questions in a timely manner. It is our intention to apply to the NASD to received a trading symbol for the Over-The-Counter Bulletin Board to allow for the trading of our common stock upon becoming a reporting issuer under the Securities Exchange Act of 1934, as amended.
“Moreover, as we have stated in our SEC filing, we will not receive any proceeds from the sale of shares offered by this prospectus. The selling stockholders will receive the net proceeds from the sale of the shares offered by this prospectus. [However,] 1,449,690 of the shares of our common stock, which we are attempting to register by this Form SB-2, are issuable upon the exercise of common stock purchase warrants. If all of the warrants are exercised, we will receive gross proceeds of $3,624,225 from the holders of the warrants. We expect to use the proceeds from the exercise of common stock purchase warrants for general corporate purposes, including working capital and capital expenditures, and possible acquisitions of complementary businesses, or other assets.
Pure Play’s CFO and founder, Richard Arnold, stated, “Our long-term goal has always been to take the company public to provide liquidity for our existing stockholders, the opportunity of ownership for our employees, and to set the foundation for long-term growth for the company. Filing of the Form SB-2 is the first major step towards achieving these goals.”
“In addition, we would like to clarify and provide further information on our total net sales and net profit figures printed in these articles (all figures are in U.S. dollars). As we have stated in our SEC filing, in the fiscal year ended July 31, 2005, our net sales were $8.5 million compared with net sales of $5.3 million for the year end July 31, 2004, representing an increase of $3.2 million, or 61 percent. We reported net income of $147,613 for the year end July 31, 2005 as compared to $248,142 for the year end July 31, 2004. The decrease in net income is primarily attributable to an increase of $100,000 in non-cash losses from currency exchange transactions, and an increase in the operating costs as a result of the distribution of Private North America Ltd.’s movie titles in the United States, and the loss of broadcast sales of Ninn Worx movie titles in the United States.
“For the nine-month period ending April 30, 2006, we had net sales of $8 million, compared to net sales of $6.4 million for the nine months ended April 30, 2005, representing an increase of $1.6 million, or 26 percent. We reported net income of $21,854 for the nine months ended April 30, 2006, as compared to net income of $171,897 for the nine months ended April 30, 2005. The decrease in net income is primarily attributable to the one-time non-cash loss of $567,200 related to the exchange of assets in connection with discontinuation of the Ninn Worx productions, and increased costs in salaries, and professional fees relating to the preparation of our Form SB-2.”
For more information, please refer to the company's filings with the SEC on EDGAR.
If you would like to receive regular updates on Pure Play, send an email request to bruce@turnerstevens.com or call (905) 795-2521.
