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ProElite notifies NSAC of Nov. 8 cancellation and its closing

EliteXC Manager of Fight Operations J.T. Steele notified the Nevada State Athletic Commission via e-mail on Tuesday that the promotion was formally canceling its planned Nov. 8 event in Reno at the Nevada Events Center.

In the same e-mail, Steele also informed NSAC that EliteXC closed operations on Tuesday.

The e-mail obtained by serves as the first confirmation from a full-time employee with ProElite that the company was ceasing operations.

In other ProElite-closing related news, both CBS and Showtime submitted official communication with the Securities and Exchange Commission on Tuesday.

A Form 8-K was filed by Showtime and informed ProElite that the company was in violation of a promissory note that required the company to maintain at least $550,000 of liquid funding with a major national bank. The form also signaled that Ken Hershman had resigned from ProElite’s Board of Directors. Hershman is also Showtime’s Senior Vice President and General Manager of Sports and Event Programming.

CBS also filed a form SC 13D with the commission in response to a Sept. 17 that declared the company’s intent to open acquisition talks with ProElite. Today’s filing stated that the companies had broken off all talks of a potential buyout.

“Showtime has ceased its exploratory discussions with the Issuer with respect to a possible acquisition of assets of the Issuer,” a passage within the filing reads. “The person designated by Showtime to serve as a director of the Issuer has resigned. Showtime believes that the Issuer is in default under the promissory notes dated June 18, 2008 and September 10, 2008 that evidence indebtedness of the Issuer to Showtime. Showtime has given the Issuer notice of such default and may from time to time pursue remedies available to it under such promissory notes and related documentation. However, there can be no assurance as to which remedies (if any) that Showtime will determine to pursue.”

As of now, ProElite has yet to formally file for bankruptcy. However, such paperwork is expected to be submitted by week’s end.

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