Completion of Debt Settlements and Rescheduling of Meeting Petrostar Petroleum Corporation ("Petrostar" or "the Company") wishes to announce that, pursuant to a series of debt settlement agreements dated January 8, 2014, it proposes to issue 5,529,196 common shares at a deemed price of $0.09 per share to settle an aggregate of $497,627.71 in outstanding debt (the "Debt Settlement"). Approximately 21% of the common shares to be issued in connection with the Debt Settlement will be issued to insiders of the Company.
The Company elected to complete the Debt Settlement in light of its current working capital position and in order to preserve cash to fund the development of its ongoing projects. Any shares issued in connection with the Debt Settlement will be issued in reliance on certain prospectus and registration exemptions under applicable securities legislation and will be subject to a hold period of four months and a day. The completion of the Debt Settlement remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The Company also wishes to announce that the first reading of its revised Tank Farm development rezoning proposal before the municipal county of Vulcan County, Alberta has been rescheduled from January 15, 2104 to February 2, 2014. As disclosed in a news release dated December 5, 2013, Mackenzie Loree, the Company's CEO, hosted a public open house on December 2, 2013 to introduce area residents of Vulcan County to both Petrostar and the proposed development.