SANTA BARBARA, Calif., Jan. 14, 2005 (PRIMEZONE) -- Soleil Film, Inc. (Pink Sheets:SFLM) announced today that, based on a new Securities and Exchange Commission regulation governing short selling, known as Regulation SHO, it has been included on the Threshold Security List. The list is updated daily and includes securities with excessive certificate delivery failures most commonly associated with the prohibited practice of naked short selling. The current list can be viewed at http://www.nasdaqtrader.com/aspx/regsho.aspx.
"The over-the-counter markets have been plagued by the practice of naked short selling for years, and it is good to see that something is finally being done about it," said Kenneth Eade, Soleil president. "SFLM has been on the Threshold list since January 11th. This means that if we remain on the list until January 27th, the short sellers must do what is called a `buy-in,' and purchase the stock to cover their short positions," said Eade.
Regulation SHO took effect January 3, 2005, and provides a new regulatory framework governing short selling of securities. It was designed with the objective of simplifying and modernizing short sale regulation and providing controls where they are most needed. At the conclusion of each settlement day, data is provided on securities in which: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days, and 2) these failures constitute at least 0.5% of the issuer's total shares outstanding. Regulation SHO mandates that, if a clearing agent has had a fail-to-deliver position for 13 consecutive settlement days, that clearing agent, and the broker/dealer it clears for, must purchase securities to close out its fail to deliver position.
Soleil is engaged in the business of film and television production. The company's library includes the award wining celebrity biography series "Autograph," and current film projects include "Fallacy," a dark comedy; "Say it in Russian," a romantic thriller; and "All That I Need," a documentary/reality feature film. Soleil's unique business model for financing films is the only successful one presently in existence. The company's plan involves the issuance of company securities to finance its film projects. This gives investors a built-in exit strategy at the moment of their investment, and their investment risk is spread out over the company's entire library.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Soleil Film, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.