I don't think there is much we can do about the RS. At the end of the day, it appears they are operating within their rights outlined within the articles of corporation. The board has all the voting power and it is quite incestuous (brother, sister, guy that has been involved with artfest forever).
I for one am going to sit back and hope EV gets his. Given the trend of lack of operating cash in-flows, this POS is months away from being insolvent. Chapter 11 is not too far away. I am regretfully pleased to see the sharp drop in the price of the stock post RS.
I am also going to focus on what the ARTS board and independent auditor has negligently glazed over. I plan on notifying the SEC about the PR promising dividends and the lack of delivery. I believe many (myself included) purchased additional shares to be on record to receive the artfest direct shares based on their PR in March of 2010. We can only report items that might spark the regulators interest and is viewed as negligence and outside of ARTS' directors' rights.
I would like to put some pressure on their independent auditor. It is shocking that their original auditor left the engagement in February of 2008 due to a qualification regarding going concern (basically the firm did not feel Artfest could continue without going bankrupt). Then a small firm from Baltimore becomes their auditor and the qualification regarding going concern magically disappears. Also, the lack of disclosures about the "dividends", "acquisitions", is even more troubling.
At the end of the day, the gig is up and we lost. Sad... i have choked down my medicine on this one.
