The Company is currently seeking an equity investment of $10 million in order to develop its production and network infrastructure, add key management personnel, host membership seminars and conduct other marketing and advertising activities, and construct facilities to aggressively market its products and services and attract additional Members.
Based on the financial projections illustrated above, at 18,500 members and a fully functional and operational Television Network Channel, Artfest could experience gross revenues of over $200 million yielding an estimated EBITDA of $42.5 million (a 21% net profit margin) by the end of Year 3 of funding.
Assuming that at the end of the 3 years there are 150,000,000 shares of the Company’s common stock outstanding, this would yield a P/E of $.28 a share. At a 20x industry multiple, this would value Artfest at $850 million, or $5.60 a share.
