DALLAS, TX -- (Marketwire) -- 11/17/10 -- Artfest International, Inc. (OTCBB: ARTS) is pleased to announce that the Company's management has approved its 2011 recapitalization plan in order to position itself for growth over the next twelve months. The plan allows the Company to capitalize on the equity in its various subsidiary corporations including Starfest, Charity Sports Distributor and (AIFC) Women's Professional Football League (UWFL), amongst others.
As a result of the diversification of the Company's assets and complexity for its business model, Artfest has chosen to utilize the assets of its subsidiaries to raise additional capital. In addition, this move will significantly reduce liability and dilution to the parent corporation and its subsidiaries.
"We believe our recapitalization plan represents a balanced approach to refining the Company's capital structure on behalf of our stockholders, while repositioning Artfest International for sustainable growth in earnings over the long-term," stated Edward Vakser, CEO of Artfest International, Inc.
As part of its recapitalization plan, Artfest International has already made arrangements for all of its shareholders of record, a publicly traded dividend in Starfest Direct. The Company will be announcing further details in the next two weeks.
Artfest International, Inc.
Artfest International, Inc. brings together artists, investors, decorators, designers, private collectors and art galleries. Artfest International's corporate site is www.artfestinternational.com. Artfest's subsidiaries are Art Channel, Inc. (www.artchannel.tv), and Artfest Direct, Inc. (www.Artfestdirect.com), offering the most exciting product and rewards program in the history of direct sales marketing.
Safe Harbor Statement
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ARTS does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
Artfest International, Inc.