TORONTO, Feb. 17, 2021 /CNW/ - This press release is
being issued in connection with the filing of an early warning
report (the "Early Warning Report") pursuant to the
requirements of National Instrument 62-103 – The Early Warning
System and Related Take-Over Bid and Insider Reporting Issues
regarding the disposition (the "Disposition") of securities
of CryptoStar Corp. (the "Issuer") by A.C.N. 117 402 838 PTY
LTD ("A.C.N.") and the Joint Actors (as defined below). The
Issuer's head office is located at 181 Bay Street, Suite 4400,
Toronto, Ontario M5J 2T3.
A.C.N. is a proprietary company under the Corporations Act
2001 (Cth) (Australia).
David Jellins (President, Chief
Executive Officer and Director of the Issuer) and Amelia Jones (Chief Commercial Officer and
Director of the Issuer) each own a 50% interest in A.C.N. and may
be considered joint actors (the "Joint Actors").
On February 16, 2021, A.C.N.
disposed a total of 15,000,000 common shares ("Common
Shares") in the capital of the Issuer (representing 5.9% of the
issued and outstanding Common Shares on a non-diluted basis). The
Disposition was made at an average price of $0.108 per Common Share for aggregate
consideration of $1,626,075.00.
The Disposition was made in connection with the proposed private
placement (the "Private Placement") of up to 20,000,000
units (each, a "Unit") of the Issuer. A.C.N. intends to
acquire 15,000,000 Units under the Private Placement at a price of
$0.10 per Unit. Each Unit shall be
comprised of one (1) Common Share and one (1) Common Share purchase
warrant (each whole warrant, a "Unit Warrant"). Each Unit
Warrant shall entitle the holder thereof to purchase one (1) Common
Share at a price of $0.15 per share
for a period of 18 months from the date of issue.
Immediately prior to the Disposition, A.C.N. had ownership of,
or excised control or direction over, 102,624,235 Common Shares
(representing 40.5% of the issued and outstanding Common Shares on
a non-diluted basis). Immediately after the Disposition, A.C.N. has
ownership of, or excises control or direction over, 87,624,235
Common Shares (representing 34.6% of the issued and outstanding
Common Shares on a non-diluted basis).
The Early Warning Report will be filed by A.C.N. and the Joint
Actors in accordance with applicable securities laws. To obtain a
copy of the Early Warning Report, please contact David Jellins c/o CryptoStar Corp., 181 Bay
Street, Suite 4400, Toronto,
Ontario, M5J 2T3, Email: david.jellins@cryptostar.com.
SOURCE CryptoStar Corp.