Weststar Resources Amends Definitive Agreement with North Road Ventures to 100% Interest
Vancouver, July 4, 2016 - Weststar Resources Corp. (CSE: WER) (the "Company" or "Weststar") is pleased to announce that, further to its news release dated April 29, 2016, it has amended the definitive agreement to purchase shares of North Road Ventures Inc. ("North Road"), a private British Columbia company, by increasing its purchase interest to 100%. This allows Weststar, via its wholly-owned subsidiary, to earn a 100% interest in North Road's pending Marihuana for Medical Purposes Regulations ("MMPR") application, as well as the option and access to participate in certain business opportunities that North Road now has or may have (together, the "Business Arrangement"). The Business Arrangement is proposed to constitute a Fundamental Change (the "Business Change") pursuant to Canadian Securities Exchange ("CSE") policies. The Business Arrangement and Business Change are subject to CSE and shareholder approval.Concurrently with the Business Change, the Company is proposing a name and symbol change. Details to follow in a further news release.
It is expected that the Company will obtain shareholder approval of the Business Change, name change and symbol change by way of a shareholder consent resolution. Additionally, and upon the successful completion of the Business Change, the Company will look to either sell or spin out its mining interest.
Under the terms of the Business Arrangement, Weststar can purchase shares representing a 100% interest in North Road by issuing to the shareholders of North Road (the "Shareholders") 10,000,000 common shares in the capital of Weststar upon CSE approval. Within 90 days upon completion of the Security Clearance and Pre-Licence Inspection Stages of the MMPR application, Weststar will pay an aggregate $500,000 to the Shareholders or issue such common shares in the capital of Weststar of equal value. Within 90 days of North Road's receipt of approval of the MMPR License, Weststar will pay $1,000,000 to the Shareholders. If Weststar is unable to pay the $1,000,000, its share interest in North Road will be decreased to 50%.
About North Road Ventures
North Road currently occupies a leased, commercial facility within Metro Vancouver. North Road has an application pending with Health Canada for a MMPR license for the distribution of up to 1,320 pounds of marijuana in its first year of operations.
North Road's personnel include a marijuana expert with 10 years' experience, retired from the RCMP; a manufacturing and logistics expert; and a management consultant with three years' experience advising in Canada's legal marijuana industry.
Since April 1, 2014, new producers have been required to be licensed by Health Canada and to conform to strict new regulations. Due to the stringent requirements, only 33 licenses have been issued under the MMPR since their implementation in 2013. It is North Road's intent to become an ever-larger player in the expanding medical marijuana industry, using their expertise in logistics and distribution.
For further info on the Company please visit www.weststarresources.com or email info@weststarresources.com.
On Behalf of the Board
Will Rascan
President & CEO
Weststar Resources Corp.
Phone: 604-683-3995
Cautionary and Forward-Looking Statement
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the marijuana industry in general such as operational risks in growing; competition; incorrect assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and government regulations. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement. The Canadian Securities Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.
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