SOURCE: Artfest International, Inc.

September 28, 2010 07:45 ET

Artfest International, Inc. Secures $15 Million Reserve Equity Financing Facility With AGS Capital Group

DALLAS, TX--(Marketwire - September 28, 2010) - Artfest International, Inc. (OTCBB: ARTS), a fine art and memorabilia company, today announced it has entered into a definitive agreement with AGS Capital Group, a New York based value fund, to provide investment capital of up to $15 million through a Reserve Equity Financing Facility.

In the Reserve Equity Financing Agreement with New York based AGS Capital Group LLC www.agscapitalgroup.com, AGS has committed to purchase shares of the Company's common stock for cash consideration up to an aggregate of $15 million after Artfest International Inc.'s Form S-1 filing has become effective with the SEC. The Agreement does not prohibit the Company from raising additional debt or equity financings, other than financings similar to this agreement.

"I'm extremely excited to have this financial facility available for Artfest. We are ready to expand our CSD sports Group, Artchannel TV and Starfest Direct. These companies have a great value and revenue potential, and this kind of funding will ensure their success. Therefore, expanding Artfest International's asset base and revenues add to the shareholders value," stated Edward Vakser, Artfest International CEO.

"We are very excited to be a part of augmenting Artfest International's growth; this facility will provide an ability to quickly raise growth capital at a competitive cost," explained AGS Managing Partner Allen Silberstein. "Given Artfest International's tremendous growth potential and positioning within the marketplace, the facility should allow Artfest to fully realize its strategic plans and significantly drive growth."

"I'm very happy to see the vote of confidence from our investors. In these economic times, it's very encouraging to see that our investors are behind us at Artfest International. With projects such as 'Little red Rhupert' being produced, our increasing expansion into stadiums with CSD sports, new celebrity endorsements and commercials, and expanded Television distribution, these funds will allow us to complete these projects and facilitate new expansions and acquisitions," explained Angie Tassan, Artfest CMO.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities referred to in this news release in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

ABOUT 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 StarFest Direct, Inc. (www.StarFestdirect.com), offering the most exciting product and rewards program in the history of direct sales marketing.

ABOUT AGS Capital Group.
AGS Capital Group provides flexible debt and equity financing solutions for growth-stage and mature public companies as well as private companies looking to go public.

With offices in New York, Hong Kong and India, AGS Capital Group has facilitated the growth of companies within the U.S. and those domiciled in foreign markets around the globe.

AGS Capital Group invests in public companies listed on all exchanges. We perform fundamental analysis including credit risk, technical analysis of market trends and industry, evaluation of management team experience and corporate structure evaluation. For additional information, please visit www.agscapitalgroup.com

For more information, please call: 877-278-6672 or 480-326-8577

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.

Contact Information

  • For More Information and RSVP Contact:
    Artfest International, Inc.
    Public Relations
    (480) 326-8577
    (877) 278-6672
    www.artfestinternational.com