Sellers Capital gains majority of Premier shareholder support
Atlanta Business Chronicle
Sellers Capital LLC claimed Monday it is closer to getting control over Premiere Exhibitions Inc.’s board.
Chicago-based Sellers Capital, which is Premier Exhibitions’ biggest shareholder with 16 percent of company shares, said it has sufficient consents to elect its four nominees to Premier's board of directors. It said it has already received consents from shareholders representing 52 percent of Atlanta-based Premier's outstanding shares.
Sellers Capital claims Premier founder and CEO Arnie Geller has mismanaged the company causing a precipitous drop in revenues and stock price, all while taking an exorbitant salary for himself. Premier reported a net loss of $1.8 million in the quarter ended Nov. 30, compared to a profit of $2.7 million during the same quarter in 2007. Its revenues for the quarter fell to $13.5 million from $16.7 million.
It also alleges the company’s board has been “unwilling or unable to make the difficult decisions” to help right the listing company.
Sellers Capital’s principal, Mark A. Sellers III, is on Premier’s board.
Premier (NASDAQ: PRXI) has been battered by recent legal and financial turmoil. It has been locked in long-term litigation over the artifacts in the Titanic exhibition, some of which are currently on display at the Georgia Aquarium. And its Bodies exhibit has been dogged by allegations the cadavers used in the exhibit are those of executed and tortured Chinese prisoners. The company settled a lawsuit with the state of New York over the matter last May.
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