WellStar Energy Corp.

WellStar Energy Corp.

December 11, 2009 18:32 ET

WellStar Energy Corp.: News Release

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2009) - WellStar Energy Corp. (TSX VENTURE:WSE)(FRANKFURT:W6V1) (the "Company") wishes to announce that it will undertake a non-brokered private placement of up to 20,000,000 common shares in the capital of the Company (the "Offering") at $0.10 per common share to raise gross proceeds of up to $2,000,000. The funds raised through the Offering will be used to settle existing debt and for general working capital purposes. All common shares distributed pursuant to the Offering will be subject to a hold period of four months plus one day following the closing of the Offering. A finder's fee in cash equal to 7% of the gross proceeds raised under the Offering may be paid to parties at arm's length to the Company in accordance with the policies of the TSX Venture Exchange who introduce purchasers to the Company in connection with the Offering. The Offering is subject to regulatory approval.

The Company also announces that the financing first announced in the news release of June 29, 2009, did not proceed as the Board of Directors determined it was not in the best interest of the Company to complete the previously announced financing at that time.

This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • WellStar Energy Corp.
    Andrew H. Rees
    President and CEO
    604-669-3041 (FAX)