Eros Media World PLC Files an Appeal with NYSE Staff on Notice of Delisting Determination

Rhea-AI Summary

Eros Media World PLC (NYSE: EMWP) has officially filed an appeal with the New York Stock Exchange (NYSE) against its decision to delist the company's A ordinary shares. The review is set for December 15, 2022. This appeal follows the sale of the STX Entertainment business, which created financial reporting complexities. Eros Media is working with new auditors to provide current financial statements. The company focuses on global media and entertainment, including the Eros Now OTT platform, which holds rights to over 12,000 films.

Positive

• Eros Media has filed an appeal against the NYSE's delisting decision, indicating proactive measures to retain listing.
• The company is actively addressing financial reporting issues with new auditors, potentially stabilizing its financial position.

Negative

• The NYSE's decision to delist could negatively impact investor confidence and stock price.
• Complex financial reporting issues stemming from the STX Entertainment sale may delay the release of audited financial statements.

DOUGLAS, Isle of Man--(BUSINESS WIRE)-- Eros Media World PLC (“Eros Media”, “Eros” or the “Company”) (NYSE: EMWP), a global Indian media and entertainment company has announced that it has duly filed an appeal with the New York Stock Exchange (“NYSE”) to review the determination made by the NYSE Regulation to commence proceedings to delist the Company’s A ordinary shares and suspend trading immediately (the “Staff Determination”).

The Company’s request for a review of the Staff Determination by a committee of the Board of Directors of the NYSE is in accordance with Section 804.00 of the NYSE’s Listed Company Manual. The company’s request has been acknowledged by the NYSE last week in a letter, further confirming December 15, 2022 as scheduled date of review.

As previously announced, on April 22, 2022, the Company completed the sale of its STX Entertainment business to an affiliate of The Najafi Companies. Although the sale of the STX Entertainment business was necessary to enable the Company to pursue its long-term strategy and maximize long term value for shareholders, the separation of the two companies caused complex financial reporting and other transition issues. The Company has been diligently working to address these issues, including working with its new auditors to be in a position to provide investors with current, audited financial statements.

About Eros Media World Plc

Eros Media World Plc, (“Eros”, the “Company”) (NYSE: EMWP) is a global media and entertainment company that acquires, co-produces and distributes films, digital content and music across multiple formats such as theatrical, television, OTT digital media streaming and emerging Web 3.0 ecosystem to consumers around the world. The Company also owns the leading South Asian OTT platform Eros Now, which has rights to over 12,000 films across major Indian languages. For further information, please visit www.ErosMediaWorld.com.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Information provided in this communication includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbors created thereby. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “approximately,” “anticipate,” “believe,” “estimate,” “continue,” “could,” “expect,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will”, “trending” and similar expressions. Those statements include, among other things, the discussions of the Company’s business strategy and expectations concerning its and the Company’s market position and future operations. All such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we are expecting, including, without limitation: our ability to successfully and cost-effectively source film content; the Company’s ability to achieve the desired growth rate of Eros Now; our ability to maintain or raise sufficient capital; delays, cost overruns, cancellation or abandonment of the completion or release of the Company’s films; our ability to predict the popularity of its films, or changing consumer tastes; our ability to maintain existing rights, and to acquire new rights, to film content; our ability to successfully defend any future class action lawsuits we are a party to in the U.S.; anonymous letters to regulators or business associates or anonymous allegations on social media regarding the Company’s business practices, accounting practices and/or officers and directors; our ability to recoup the full amount of box office revenues to which it is entitled due to underreporting of box office receipts by theatre operators; our dependence on our relationships with theatre operators and other industry participants to exploit the Company’s film content; our ability to mitigate risks relating to distribution and collection in international markets; our ability to compete with other forms of entertainment; our ability to combat piracy and to protect our intellectual property; our ability to maintain an effective system of internal control over financial reporting; contingent liabilities that may materialize, our exposure to liabilities on account of unfavourable judgments/decisions in relation to legal proceedings involving the Company or its subsidiaries and certain of its directors and officers; our ability to successfully respond to technological changes; our ability to satisfy debt obligations, fund working capital and pay dividends; the monetary and fiscal policies of countries around the world, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices; our ability to address the risks associated with acquisition opportunities; risks that the ongoing coronavirus pandemic and its spread, and related public health measures, may have material adverse effects on our business, financial position, results of operations and/or cash flows; uncertainty as to the long-term value of the Company’s ordinary shares; the completion of the Company’s fiscal 2021 and 2022 audit and filing of its Annual Reports on Form 20-F.

The forward-looking statements contained in this communication are based on historical performance and management’s current plans, estimates and expectations in light of information currently available and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors, many of which are beyond the Company’s control. Should one or more of these risks or uncertainties materialize or should any of the Company’s assumptions prove to be incorrect, the Company’s actual results may vary in material respects from what the Company may have expressed or implied by these forward-looking statements. The Company cautions that you should not place undue reliance on any of its forward-looking statements. Any forward-looking statement made by the Company in this communication speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220914005404/en/

EMWP Investor Relations

investors@erosintl.com

Source: Eros Media World PLC

FAQ

What is the current status of Eros Media World PLC's stock listing?

Eros Media has filed an appeal with the NYSE regarding a delisting decision, with a review scheduled for December 15, 2022.

Why is Eros Media World PLC facing a delisting from the NYSE?

The company is facing delisting due to unresolved financial reporting issues following the sale of its STX Entertainment business.

What actions is Eros Media World PLC taking regarding its financial statements?

Eros Media is working with new auditors to resolve financial reporting complexities and aims to provide audited financial statements.

When will Eros Media World PLC's appeal regarding delisting be reviewed?

The NYSE is scheduled to review the appeal on December 15, 2022.