CKX Announces Conversion of Preferred Stock.NEW YORKNEW YORK -- Sports Entertainment Sports entertainment is a type of of entertainment that takes the form of a sporting event, but with more emphasis on dramatic storylines, humor, spectacle or titillation than on a contest of athletic skills. Enterprises, Inc. d/b/a CKX, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CKXE) announced today that it has received notice from The Huff Alternative Fund, L.P. and certain of its affiliates ("Huff") that they have exercised their right to convert their 2,172,400 shares of Series A Convertible Redeemable Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of the Company into common stock of the Company, resulting in the issuance of 6,051,253 shares of common stock. Huff acquired the preferred stock which carried a face amount of $43,448,000 in February 2004. A full description of the Preferred Stock is contained in the Company's Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. which was filed with the SEC on February 8, 2005. Robert F. X. Sillerman, Chairman of CKX, Inc. commented, "We are pleased that Huff has chosen to convert their preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , which had an eight year term, to common so early in the evolution of our company. This will strengthen our balance sheet, provide us with flexibility in the future and simplify our capital structure by eliminating the complex anti-dilution protections and special voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. contained in the original instrument." CKX is engaged in the ownership, development and commercial utilization of entertainment content. This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, acquisitions of dispositions of business assets, and the potential impact of future decisions by management that may result in merger and restructuring charges, as well as the potential impact of any future impairment charges to goodwill or other intangible assets. More detailed information about these factors may be found in filings by Sports Entertainment Enterprises, Inc. with the Securities and Exchange Commission. Sports Entertainment Enterprises, Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. |
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