NEWS: Debt Settlement Updates Nanton, AB / ACCESSWIRE / May 8 2014 / Petrostar Petroleum Corporation ("Petrostar" or "the Company") wishes to announce that, further to its news release dated January 15, 2014, the Company has entered into a series of debt settlement agreements dated May 5, 2014 in order to settle an additional $216,271.21 in outstanding debt through the issuance of 2,347,457 Petrostar common shares at deemed prices of $0.09 and $0.135 per share (the "New Debt Settlement"). Together with the proposed debt settlement disclosed in the January 15 news release (the "Original Debt Settlement"), the New Debt Settlement is expected to result in the Company issuing an aggregate of 7,709,988 common shares at deemed prices ranging from $0.09 to $0.135 per share to settle $698,898.92 in debt. These numbers do not include the settlement of $15,000 in outstanding debt that was included in the Original Debt Settlement amount.
The Company elected to complete the New 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 New 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 New Debt Settlement remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Petrostar also wishes to announce that although the Original Debt Settlement has not yet been approved by the TSX Venture Exchange, the Company expects to seek shareholder approval for a portion of it at the Company's upcoming annual general meeting and resubmit the balance for TSX Venture Exchange approval along with the New Debt Settlement.
https://finance.yahoo.com/news/debt-settlement-updates-232500799.html