Eros Media World Plc Receives Notice of Delisting From NYSE, Intends To Appeal The Staff Determination

Rhea-AI Summary

Eros Media World PLC (NYSE: EMWP) has received a notice from the NYSE regarding the impending delisting of its A ordinary shares due to the failure to file required annual and semi-annual reports for fiscal years 2021 and 2022. The company plans to appeal this decision. Eros recently sold its STX Entertainment business to focus on long-term strategy, although this transition has led to reporting challenges. The company continues to work on becoming current with SEC reporting obligations.

Positive

• The company intends to appeal the NYSE's delisting decision, indicating a proactive approach to address the issue.

Negative

• Failure to file required reports could lead to delisting and jeopardize investor confidence.
• Complex financial reporting issues stem from the sale of the STX Entertainment business, complicating current operations.

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, today announced that on August 17, 2022, it received a notice from the New York Stock Exchange (“NYSE”) that the staff of NYSE Regulation has determined to commence proceedings to delist the Company’s A ordinary shares and suspend trading immediately (the “Staff Determination”).

The Staff Determination was issued because the Company had not filed its annual report on Form 20-F for the year ended March 31, 2021, and semi-annual report on Form 6-K for the six months ended September 30, 2021 with the Securities and Exchange Commission (the “SEC”), on or before August 17, 2022, which was the latest deadline allowed under Section 802.01E of the NYSE’s Listed Company Manual. The Company also did not file its annual report on Form 20-F for the period ended March 31, 2022 prior to the August 17, 2022 deadline. The Staff Determination does not impact the Company’s obligation to file periodic reports and other reports with the SEC under applicable U.S. securities laws.

The Company intends to request a review of the Staff Determination by a committee of the Board of Directors of the NYSE in accordance with Section 804.00 of the NYSE’s Listed Company Manual. The review will be scheduled for a date that is at least 25 business days from the date the Company requests such a 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 and become current in its SEC reporting since the date of the sale.

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/20220817005812/en/

Company Contact:

EMWP Investor Relations

investors@erosintl.com

NYSE Contact:

NYSE Communications

PublicRelations-NYSE@ice.com

Source: Eros Media World PLC

FAQ

What actions is Eros Media World (EMWP) taking following the NYSE delisting notice?

Eros Media World (EMWP) plans to request a review of the NYSE's delisting decision by a committee.

Why did Eros Media World receive a delisting notice from the NYSE?

Eros Media World received the delisting notice due to the failure to file its annual and semi-annual reports on time.

What reports has Eros Media World failed to file?

Eros Media World failed to file its annual reports on Form 20-F for the fiscal years ended March 31, 2021, and March 31, 2022, as well as a semi-annual report on Form 6-K.

What was the impact of the sale of STX Entertainment on Eros Media World's reporting?

The sale of STX Entertainment has led to complex financial reporting challenges for Eros Media World.

When did Eros Media World announce the receipt of the NYSE delisting notice?

Eros Media World announced the receipt of the NYSE delisting notice on August 17, 2022.