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AJB Capital – Premier Exhibitions – valuable assets

AJB Capital: Premier Exhibitions’ valuable assets

Excerpts from the letters

Valuable assets

Premier’s ownership of over 5,000 Titanic artifacts and our status as Salvor-in-Possession of the Titanic wreck site are in my estimation the most valuable assets we possess. I also believe these are among the most unique and valuable assets held by a company of our size anywhere in America. The most recent appraisal of these assets was made by an independent appraiser only 18 months ago, totaling $218,023,300. This is the latest of several appraisals that continue to value the artifacts at subsequently higher amounts. The current market value of our equity is approximately $3,300,000, along with minimal debt according to the latest filings.

The value of these assets, unlike that of the operations of the exhibition business, is immutable and enduring in my judgment. In addition, our Salvor-in-Possession status of the wreck site has value that can be pursued alongside that of the artifacts. Therefore, shareholders may be better served by leadership focusing on unlocking the value of our collective Titanic assets as its first priority.

Problem

Judging by the financials through August 2015, the operations are losing money and the associated cash outflows are impacting the company negatively. Rather than focus resources on a turnaround of the Saturday Night Live exhibit and any other unprofitable ones, it may be best to end those exhibits and stop the bleeding. The locations where they are held, including midtown Manhattan, are highly desirable to many different tenants. This provides Premier an opportunity to unburden itself from the expensive leases and to disengage from the irrational practice of continuing to run an unprofitable exhibit to meet the associated obligations of those leases. If you are interested to read insights like this, we are happy to offer you a free trial.

Letter