PHOENIX, Nov. 25, 2003 (PRIMEZONE) -- Viastar Holdings Inc. (OTCBB:VISH) (the "Company" or "ViaStar") announced today that it had filed its first quarterly report (for the quarter ending September 30th 2003) with the Securities and Exchange Commission since its successful merger with Level X Media Corporation which occurred on July 18th. The resultant combined companies have reported gross assets in excess of $12 million and shareholder's equity in excess of $11 million. The combined company's gross revenues reported were $141,481 for the quarter ending September 30, 2003 and a realized gross margin of 54% on the sale of its products. Additionally the combined companies reported the realization of $782,250 in value through new artist agreements and distribution contracts.
During the quarter ended September 30, 2003, the Company sold an 80% majority position in Moving Pictures International (a film trade publication purchased by the Company in July 2003) to Rhiannon Holdings Limited, a British Virgin Island company, in exchange for the return of several million of the Company's common stock and a substantial reduction in debt which the Company had incurred and assumed in the purchase of Moving Pictures. According to the completed stock purchase agreement, ViaStar retains a 20% equity interest and a 20% revenue sharing position in Moving Pictures International on a going forward basis and removed in excess of $1.5 million in secured debt from the Company's balance sheet. The agreement calls for a net return of 5 million shares of ViaStar's common stock which was pledged as security for a note held by the Company's former Chairman Mr. Genarro Buonocore. These shares of common stock have been returned to treasury and canceled. The Company and its management believes this significant and critical restructuring immediately increases shareholder overall value while allowing the current management to focus on its primary business, the efforts in, and the increase of its critical and substantial music industry assets, long-term artist contracts and music and video distribution contracts.
While not a popular position with the Company's previous management team, upon further investigation, present management has been forced to cancel 5 million shares of the Company's common stock improperly issued to various entities, officers and directors made prior to the merger. Furthermore, the Company has reinstated 3 million shares that were improperly canceled by prior management to what was its largest shareholder prior to the acquisition of Moving Pictures International and the merger with Level X. Through the sale of a majority interest in Moving Pictures International and the cancellation of invalid and improperly issued stock, the Company's present management team has realized a sizeable reduction in dilution to our shareholders of approximately 7 million shares during the past 90 days.
As the Company and management develop its profitable entertainment distribution business and acquires several new titles for its music division, the Company through positive cash flows is expected to see significant growth over the next twelve months. Within the past three weeks, ViaStar has added three key players to its management team and secured agreements with 6 new independent sales representatives for its music and video distribution division. The Company's management team plans to build a significant and solid base of media content for its retail and ancillary distribution channels and to further enhance significant client vendor relations. "The move to divest ViaStar of its controlling interest in Moving Pictures International in exchange for a significant reduction in debt, a decrease of over 5 million issued and outstanding shares and the resulting positive change in shareholder value is only a small part of this company's program," stated ViaStar's CEO, John D. Aquilino. "Furthermore it is management's goal to clearly define ViaStar's mission; to become a solid force in music production, marketing and distribution, coined the 'new entertainment business' while enhancing the position and value to our shareholders."
For more information visit Viastar's web site at http://www.viastarcorp.com/
About Viastar
Viastar Holdings, Inc. is engaged in development, production and distribution of entertainment related media for film, television, music and publishing interests. The Company's portfolio currently includes ownership of Viastar Distribution Group, A.V.O. Studios, Moving Pictures International, Viastar Records, Quadra Records, Light of the Spirit Records, and Viastar Classical.
Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.