Mr. Andrew Rees reports
WELLSTAR ENERGY CORP. ISSUES PROMISSORY NOTES
Wellstar Energy Corp. has issued two unsecured promissory notes in respect of a loan made to the company by Fives Enterprize Inc. (Darren Loreth, president) and CD Oil Ltd. (Darren
Moore, president), both arm's-length parties, pursuant to which the lenders have agreed
to lend the company $100,000. The principal sum under the notes will be paid in
10 equal payments of $11,000 to the lenders on the first day of each month, commencing
Jan. 1, 2016, until Oct. 1, 2016.
In consideration of establishing the loan, the company will pay the lenders a bonus of 500,000 common
share purchase warrants, with each warrant exercisable to purchase one common share
of the company for a period of one year from the date of issuance, at a price of 10 cents. The loan and the
granting of warrants to the lender will be subject to the approval of the TSX Venture Exchange. The warrants are subject to a hold period expiring four months from the date of issuance,
pursuant to the policies of the TSX-V.
Net proceeds from the loan will be applied toward oil and gas operations, property acquisitions, and
general working capital purposes.
We seek Safe Harbor.
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