Weststar Resources Closes Financing, Receives Shareholder Approval on Change of Business
19.10.2016 | The Newswire
Closes Transaction with North Road Ventures.Company to Change Name to Liberty Leaf Holdings Ltd. and Symbol to “LIB“ Vancouver, October 19, 2016 - Weststar Resources Corp. (CSE: WER) (the "Company") is pleased to announce that it has received shareholder approval on the fundamental change of business (the "Fundamental Change") announced on April 29, 2016 by shareholder consent resolution with 68.13% of shares voted.
The Fundamental Change of the Company is concurrent with the share purchase agreement (the "SPA") with the shareholders of North Road Ventures Ltd. ("North Road") whereby the Company may acquire, via its wholly-owned subsidiary, a 100% interest in North Road's pending Access to Cannabis for Medical Purposes ("ACMPR") application, formerly the 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 Company has allotted and issued 12,000,000 common shares in the capital of the Company to the shareholders of North Road at a deemed price of $0.05 per share. For more details on the SPA, please refer to the Company's news releases dated April 29, July 4 & September 9, 2016.
Financing
Additionally, the Company has closed a non-brokered private placement financing (the "Private Placement") for gross proceeds of $370,315.96
The Company has allotted and issued 5,290,228 units (the "Units") at a price of $0.07 per Unit. Each Unit consists of one common share in the capital of the Company and one transferable share purchase warrant (the "Warrant"). Each Warrant is exercisable by the holder to acquire one additional common share of the Company for a period of two years from issuance at an exercise price of $0.10 per share, subject to acceleration.
In the event that the closing price of the Company's common shares is at or above $0.20 per share for ten consecutive days, the Company may provide notice to the warrant holders that the expiry date of the warrants has been accelerated and that warrants not exercised within 30 days will expire.
Proceeds from the Offering are expected to be used for general working capital purposes and to seek out new potential ventures. In relation to the Private Placement, the Company has paid finder's fees of an aggregate $17,412.60 to arm's-length third parties.
All securities issued pursuant to the SPA and Private Placement are subject to a four-month and one-day hold period.
Name & Symbol Change
Furthermore, upon the resumption of trading, the Company will be changing its name to Liberty Leaf Holdings Ltd. and symbol to "LIB" and will be categorized in the Life Sciences Sector. The Company has satisfied the conditions of the CSE to obtain final approval. The Company's shares will remain halted until final approval is received and the Company will issue a news release once this is obtained.
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
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