NEW YORK, June 22 /PRNewswire-FirstCall/ -- EDCI Holdings, Inc. ("EDCI"), the holding company for Entertainment Distribution Company, Inc., the majority shareholder of Entertainment Distribution Company, LLC ("EDC"), a European provider of supply chain services to the optical disc market, today issued the following reminder to its shareholders related to the transfer restrictions on the publicly traded common stock of EDCI:
- Transfer restrictions preclude parties from selling or buying shares that would create a new 5% ownership block, and such transfers would be void, subject to limited exceptions. Based on EDCI's outstanding shares of 6.7 million shares, ownership of approximately 335,000 shares would result in a stockholder owning a 5% block of EDCI's shares.
- EDCI's stock repurchase program can result in an existing sub 5% holder becoming a 5% holder due to the reduction in EDCI's outstanding shares, as a result of which such 5% holder would, subject to limited exceptions, be restricted from any further sale or purchase of EDCI's common stock. As announced on May 26, 2009, EDCI has an active common stock repurchase program that has a significant probability of pushing near 5% shareholders above the 5% restricted threshold.
Any stockholder who knowingly violates the transfer restrictions will be liable for any and all damages suffered by EDCI Holdings as a result of such violation, including damages resulting from a reduction in or elimination of the ability to utilize the Net Operating Losses of EDCI and any professional fees incurred in connection with addressing such violation.
Shareholders are encouraged to read the more detailed description of the transfer restrictions contained in EDCI's definitive proxy filed with the Securities and Exchange Commission on August 6, 2008.
EDCI encourages all shareholders potentially interested in selling shares of EDCI common stock, irrespective of the small or large quantity of shares owned, to contact EDCI directly (vs. entering sell orders through a brokerage firm) via Kyle E. Blue, Treasurer, at (317) 596-0323.
About EDCI Holdings, Inc.
EDCI Holdings, Inc. is a multi-national company, headquartered in New York, that is seeking to enhance shareholder value by pursuing acquisition opportunities. EDCI is the holding company of Entertainment Distribution Company, Inc., which is the majority shareholder of Entertainment Distribution Company, LLC ("EDC"), a European provider of supply chain services to the optical disc market. EDC serves every aspect of the manufacturing and distribution process and is one of the largest providers in the industry. EDC's clients include some of the world's best-known music, movies and gaming companies. EDC's operations include manufacturing and distribution facilities in Hannover, Germany, and a manufacturing facility in Blackburn, UK. For more information, please visit http://www.edcih.com/.
EDCI Holdings, Inc.
CONTACT: Kyle E. Blue, EDCI Holdings, Inc., Office: +1-317-596-0323
Web Site: http://www.edcih.com/
