SOURCE: Joystar, Inc.

July 19, 2005 09:00 ET

Joystar Completes $1.6 Million Equity Financing

Round Includes Institutional and Accredited Investors

ALISO VIEJO, CA -- (MARKET WIRE) -- July 19, 2005 -- Joystar, Inc. (OTC BB: JYSR) today announced that it has closed the sale of a $1,627,000 equity offering to institutional and accredited investors. First Montauk Securities Corp. of Red Bank, New Jersey, member NASD, acted as a selling agent for the financing. Gross cash proceeds totaled $1,057,000. Additionally, William M. Alverson and one other Director converted loans to the Company totaling $575,000 to equity under the same terms.

William M. Alverson, Joystar CEO, commented, "The transaction has made a marked impact on the Company's balance sheet as we are now properly capitalized with significant cash on hand and a positive net worth. Not only is the Company virtually debt free, it has also given us significant cash reserves as we look forward to attaining profitability in the first quarter of 2006."

Certain proceeds will be used to fund the acquisition of Vacation Cruise Resources and the immediate expansion of the Miami Cruise Center operation. Additionally, proceeds will be used to fuel Joystar's continued rapid growth as a host travel agency and for general working capital purposes.

"The financing is a critical component in driving the Company's success strategy as we continue to outpace the competition for market share. It further enables us to pursue our strategic initiatives which include the expansion of our professional travel agent network, acceleration of marketing programs, and potential strategic acquisitions.

"We are pleased with our investment banker, First Montauk Securities, and their ability to deliver on this attractive and stable equity financing. This round with an NASD member firm and their institutional and accredited investors is a first step towards meeting the net worth requirements for listing on a major exchange," added Alverson.

About Joystar, Inc.

Joystar is the nation's largest and fastest growing travel agency network. The Company specializes in selling complex, high-margin travel products including cruises, vacation packages and group travel through its national sales force of 2,200 professional agents. Joystar's comprehensive business combines innovative technology, marketing opportunities and expert support services to the Company's independent travel agents. With Joystar, professional travel agents can concentrate on promoting travel and creating customer loyalty without the administrative and financial burden of owning/operating a traditional storefront travel agency.

Safe Harbor Act

"Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. Joystar, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Please refer to the documents filed by Joystar, Inc. with the Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with our ability to (i) increase revenues, (ii) obtain profitability, and (iii) obtain additional financing, changes in general economic and business conditions (including in the online business and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, risks in connection with acquisitions, the time and expense involved in such development activities, the level of demand and market acceptance of our services and changes in our business strategies.

Additionally, forward-looking statements concerning the performance of the travel and leisure industry are based on current market conditions and risks, which may change as the result of certain regulatory, political or economic events, a shift in consumer travel preferences, as well as those risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, which could cause actual events or results to differ materially from the events described in the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

Contact Information

  • For further information, please contact:
    George Mottel
    (949) 837-8101 Ext. 229
    email Email Contact