Cryptostar investor A.C.N. disposes of 15 M shares
2021-02-17 12:13 ET - News Release
Mr. David Jellins reports
EARLY WARNING NEWS RELEASE - A.C.N. 117 402 838 PTY LTD'S HOLDINGS OF CRYPTOSTAR CORP.
This press release is being issued in connection with the filing of an early warning report pursuant to the requirements of National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, regarding the disposition of securities of Cryptostar Corp. by A.C.N. 117 402 838 Pty. Ltd. and the joint actors (as defined as follows). The issuer's head office is located at 181 Bay St., Suite 4400, Toronto, Ont., M5J 2T3.
A.C.N. is a proprietary company under the Corporations Act 2001 (Cth) (Australia). David Jellins, president, chief executive officer and director of the issuer, and Amelia Jones, chief commercial officer and director of the issuer, each own a 50-per-cent interest in A.C.N. and may be considered joint actors.
On Feb. 16, 2021, A.C.N. disposed a total of 15 million common shares in the capital of the issuer (representing 5.9 per cent of the issued and outstanding common shares on a non-diluted basis). The disposition was made at an average price of 10.8 cents per common share for aggregate consideration of $1,626,075.
The disposition was made in connection with the proposed private placement of up to 20 million units of the issuer. A.C.N. intends to acquire 15 million units under the private placement at a price of 10 cents per unit. Each unit shall comprise one common share and one common share purchase warrant. Each unit warrant shall entitle the holder thereof to purchase one common share at a price of 15 cents per share for a period of 18 months from the date of issue.
Immediately prior to the disposition, A.C.N. had ownership of, or exercised control or direction over, 102,624,235 common shares (representing 40.5 per cent of the issued and outstanding common shares on a non-diluted basis). Immediately after the disposition, A.C.N. has ownership of, or exercises control or direction over, 87,624,235 common shares (representing 34.6 per cent of the issued and outstanding common shares on a non-diluted basis).
The early warning report will be filed by A.C.N. and the joint actors in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact Mr. Jellins, care of CryptoStar, 181 Bay St., Suite 4400, Toronto, Ont., M5J 2T3 (e-mail: david.jellins@cryptostar.com).