Powerstar International Inc.
TSX VENTURE : PWS.P

April 05, 2007 19:27 ET

Powerstar International Announces Filing of Filing Statement for Qualifying Transaction With Solutrea Inc.

CALGARY, ALBERTA--(CCNMatthews - April 5, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Powerstar International Inc. ("Powerstar") (TSX VENTURE:PWS.P) is pleased to announce that further to its news dated November 28, 2006, it has filed its filing statement dated April 5, 2007 (the "Filing Statement") in connection with its proposed qualifying transaction. Powerstar had entered into a letter agreement dated September 8, 2006, as amended by a further letter agreement dated October 26, 2006 with Solutrea Inc. ("Solutrea") respecting a proposed business combination between the two corporations. The proposed transaction, which was negotiated at arm's length, is to be effected by way of an exempt take-over bid whereby Powerstar will acquire all of Solutrea's issued and outstanding common shares in exchange for common shares of Powerstar. Upon completion of the proposed transaction, it is anticipated that Powerstar will meet the Tier 2 listing requirements of the TSX Venture Exchange for a Technology or Industrial Issuer.

Closing of the proposed transaction is expected to occur on April 13, 2007. The Filing Statement is available under Powerstar's profile on SEDAR at www.sedar.com.

Completion of the proposed transaction is subject to a number of conditions, including but not limited to, Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing Statement prepared in connection with the proposed transaction, any information released or received with respect to the proposed transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Powerstar should be considered highly speculative.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

ON BEHALF OF THE BOARD OF DIRECTORS

G. Steven Price, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this release

Contact Information

  • Powerstar International Inc.
    G. Steven Price
    President
    (403) 461-6664
    (403) 264-9600 (FAX)
    Email: steve.price@shaw.ca