Yesterday, Seven Arts Entertainment, Inc. (NASDAQ:SAPX) stock price jumped up as the company issued some capital raising news. Later, the stock got also promoted for today’s session, which may increase further the share price. 
SAPX closed the last session at $0.395, which is an 8.22% increase for the share price. The stock traded also 1.3 million shares during the session, which is twice the daily average and together with the share price jump and the positive position of some technical indicators suggests that the new promotion for SAPX is well timed.
Yesterday evening, several promotional newsletters came in for SAPX stock. Senders are various stock promoting websites and the compensation paid for the advertising service amounts to $43,000. The stock is said in some of the promo mails to be a potential breakout alert and to skyrocket today. It anything of that will happen is up to be seen in the upcoming session.
There was news yesterday, as well. The company announced in its latest press release that it has sold 250,000 newly issued shares of common stock to an investor at a price per share of $1. Further, the investor received warrants to buy another 100,000 and the company may sell to him another 250,000 shares at prices between $1 and $1.50 during the next six months.
Although that sounds like good news for a company with last known cash position of $27,000 (as of end-June 2010), certain other events have not been that positive, which is also seen on SAPX performance in the past two months.
At the end of September, Seven Arts Entertainment received a letter from Nasdaq stating that the bid price for SAPX common stock was below $1.00 for thirty consecutive days. Thus, Seven Arts faces the possibility of getting delisted if its stock does not comply with the requirement of a closing bid price of at least $1.00 for ten consecutive trading days by March 1. After that date, SAPX may apply for a further 180-day extension period.
