SFX Drawing Buyer Interest

SFX Entertainment says it has received “preliminary indications of interest” from unnamed parties it says are kicking the tires of the troubled EDM promoter, as the company faces NASDAQ delisting and legal vultures circle investors in search of potential plaintiffs.

CEO Robert Sillerman has already announced he’s making another offer to take SFX private, this time at $3.25 per share instead of the failed $5.25 offer earlier in the year. The company reopened a window to consider offers after Sillerman’s last “go private” attempt fell through in August.

The Special Committee of the Board of Directors did not disclose the parties expressing interest nor any terms offered, noting that Sillerman’s was made public as part of a required Securities and Exchange Commission filing.

The committee says it is “in discussions” with interested parties to determine the next steps in the process, which it expects to finalize “as expediently as possible.” SFX revealed Oct. 19 that it received written notification from NASDAQ four days earlier that the company was in violation of its listing rules for having traded at below $1 per share for 30 consecutive days.

That notification started another clock for SFX, giving it 180 calendar days during which the stock price must rise above $1 for at least 10 consecutive business days in order to get into compliance. The day SFX received the delisting notification, shares did close above the $1 mark. The following day, shares traded briefly traded for as much as $1.17, but inched back south to close at $0.89 Oct. 21. In the meantime, three additional law firms announced they are “investigating claims” and seeking investor plaintiffs to initiate class action suits against SFX.