OKLAHOMA CITY - (Business Wire) SUN Sports & Entertainment Inc. (OTC: SUNR), a Mixed Martial Arts (MMA) event promotion company, announced today that the 10-day trading suspension imposed on the Company last month on October 21, 2009, has expired. Last Friday, Bruce Scambler, a Company Director and spokesman, said, “We have provided FINRA and the SEC with the information requested and I’m happy to report that the suspension has been lifted, however the Company will trade on Grey Market until we file the appropriate application with FINRA for relisting on Pinksheets. In the interim we have continued to take strategic steps to further our plan of restructuring to transform the Company into a sports and entertainment holding company, as announced in our September 14, 2009, Press Release. We now have two new Directors who have agreed to join me on the Board, Mr. Fred Graves Luke and Mr. Donald Lake, neither of whom has had any prior involvement with the Company or business relationships with any of the former officers and Directors of the Company, and we intend to engage the independent CPA firm to prepare unaudited 2008 and 2009 financial statements in accordance with GAAP before posting them with Pinksheets.
“We’ve have reserved the names and hope this month to incorporate and capitalize SUN Sports Inc., SUN Entertainment Inc. and SUN Investment & Finance Inc., each to be wholly-owned by SUN Sports and Entertainment Inc.,” said Mr. Scambler. “The SUN Sports Inc. subsidiary, once the Sports Promotion License can be transferred, will attempt to resume its Mixed Martial Arts promotion activities, SUN Entertainment Inc. will hold the Company’s Film Library and Trademarks and pursue Licensing opportunities, and the SUN Investment & Finance Inc. subsidiary will initially focus on action sports investments and financing opportunities.”
According to Mr. Scambler, the formation of the SUN Holdings Inc. subsidiary, intended to serve as the vehicle for the Company’s planned expansion of its Mixed Martial Arts fight promotion activities into foreign markets, is on hold. “Going into foreign markets at this time, with everything else that we are dealing with right now, is premature,” said Mr. Scambler. “Our immediate attention needs to be on the completion of updated financial statements, the re-listing on the Pinksheets and the relocation of its new subsidiary in organization, SUN Sports Inc., in the Dallas area, and the Company and the other subsidiaries in organization, to new offices in Nevada, California and here in Oklahoma. In the interim SUN Sports and Entertainment Inc. will continue to maintain its principal office at 1300 N. Penn. Avenue, Suite 150, Oklahoma City, Oklahoma 73120.”
Commenting on the recent suspension of trading in the Company’s stock, Mr. Scambler said, “The apparent reason for the 10-day suspension seems to the result of increased public interest and trading in the Company’s stock following announcements made over the last twelve months. I also believe that certain events over the last year relating to litigation and disputes involving the Company, which could have an adverse impact on the Company’s financial condition, need to be addressed now to put an end to the rumors and possible investor confusion. First, last July, the Company did not get its expected dismissal of the 2008 lawsuit between the Company, as Defendant, and Mr. Buckeye Epstein, as Plaintiff, over a $16,000 Employment Agreement dispute as it was continued is now set for Trial in February 2010. Secondly, the Company is currently attempting to settle a $500,000 loan made to the Company related to the Art of War 3 - USA vs. Brazil fight. Lastly, there are two recent disputes which do not yet involve the Company in litigation: first, a Notice to Vacate issued to the Lessee of the office space in Addison, Texas, which the Company formerly sub-leased as its principal office, and secondly, a recent dispute with a private equity investment firm over an agreement which allegedly closed in November 2008, resulting in the Company issuing shares of its Series A Convertible Preferred Stock and $1,450,000 of 14% Convertible Promissory Notes in exchange for a $5,000,000 equity investment which the Company never received.”
Commenting further Mr. Scambler said, “In addition, the Company may have an issue relating to an agreement with Dish Network for the purpose of re-broadcasting the Company’s Film Library using its wholly-owned subsidiary, Sports Radio Event Network, Inc., which may now have to be terminated unless Sports Radio can obtain the necessary working capital. And, as a point of clarification, in the September 14, 2009 press release the firm of Tatum LLC was reported as being ‘terminated’ when it actually resigned from its engagement for lack of payment.
“As previously stated in the September 14, 2009 press release, our restructuring plan is very ambitious,” said Mr. Scambler, “but achievable provided we have the support of our vendors and lenders, and the required working capital financing. To date however we have not been able to attract sufficient working capital to pursue the whole of our planned activities as aggressively as we had hoped. As a result I would like to forewarn those who may be considering buying the Company’s shares in the future: an investment in the Company’s shares at this point in time must be considered highly speculative.”
Safe Harbor Statement -- This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. SUN Sports and Entertainment Inc. does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
SUN Sports & Entertainment Inc.
Mr. Bruce Scambler, 405-608-2700
Fax: 405-848-3666
bruce@sunorganization.com
www.artofwarlive.com
www.sunorganization.com
