Premier Exhibitions Inc. (NASDAQ: PRXI) has resolved its Attorney General inquiry with the State of New York. This inquiry was a significant overhang on the company, which has been seen in its share prices.
The company will continue to operate the human anatomy exhibition called “Bodies . . .The Exhibition” in New York City. The company has also agreed to make certain disclosures in its exhibition, on its website, and in its New York area advertising regarding the sourcing of the specimens presented in the exhibition.
This was one of the investor issues hanging over the company regarding the cadaver sources or whose cadavers the company was using. Part of the allegations from human rights groups were that the company was using cadavers of executed Chinese prisoners rather than cadavers that were from donors.
Premier has agreed to create an escrow fund of $50,000.00 to reimburse customers who establish that they would not have attended the New York City exhibition had they known the facts set forth. Monies remaining in the escrow account after 8 months that have not been paid to customers will revert back to the Premier.
The Company will retain an independent monitor to ensure compliance with the Assurance agreement and it will pay $15,000.00 to the Attorney General of the State of New York as part of the resolution.
You can read the full ASSURANCE OF DISCONTINUANCE at the company’s prxi.com site.
Shares closed at $4.69 yesterday, and the 52-week trading range is $4.27 to $18.62.
For whatever it is worth, if you haven’t seen this exhibit in New York or elsewhere it is worth seeing as one of the most unique exhibits available to the public that you will have ever seen.
Jon C. Ogg
May 29, 2008