Megastar Announces Reorganization and a New Director
March 31 2011 - 4:39PM
Marketwired
Megastar Development Corporation (TSX VENTURE: MDV)(FRANKFURT: M5Q)
("Megastar", the "Company" or "MDV") announces that the board of
directors of the Company (the "Board") has determined to proceed
with the proposed share consolidation previously approved by
shareholders at the Special Meeting of Shareholders of Megastar
(the "Meeting") held on December 20, 2010. At the Meeting,
shareholders approved a share consolidation, at the discretion of
Company's management and the Board, on the basis of one (1) new
post-consolidation Megastar share for up to every six (6)
pre-consolidation Megastar shares outstanding.
The Board has unanimously resolved to implement the
consolidation ratio of one (1) new post-consolidation common share
for every four (4) pre-consolidation common shares (the "Share
Consolidation"). Once complete, the 42,127,233 issued common shares
currently outstanding will be reduced to 10,531,808 common shares
(as at the date of this release). No fractional common shares will
be issued as a result of the Share Consolidation. The exercise
price and the number of common shares issuable under any
outstanding convertible securities of the Company, including
outstanding incentive stock options and common share purchase
warrants, will be proportionately adjusted once the transaction is
complete.
The Company's common shares will continue to be traded on the
TSX Venture Exchange under the symbol "MDV" on a post-consolidation
basis. The consolidation of the Company's shares is subject to all
necessary regulatory approvals, including that of the TSX Venture
Exchange.
Appointment of New director
The Company announces that Richard Roy, P.Geo., has resigned as
a director of the Company in order to focus on other professional
commitments and business interests. The Company has appointed
Andrew Lee to its Board to fill the vacancy created by Mr. Roy's
resignation.
Mr. Lee holds a Bachelor of Science degree from the University
of British Columbia and has been working as a self-employed
consultant to mineral exploration companies for the past six years,
assisting with financings and corporate development. Recently, Mr.
Lee served as a director of Plains Creeks Mining Limited, a private
company that went public through a reverse takeover of Resource
Hunter Capital Corp., listed on the TSX Venture Exchange.
Currently, Mr. Lee is working on plans to take Four Rivers
Resources Inc., an industrial company focused on forest products,
public later this year. The Company wishes to thank Mr. Roy for his
valuable contribution and technical assistance to the Company over
the past seven years and wishes him the very best in his future
business endeavours, and welcomes Mr. Lee to the Board.
ABOUT MEGASTAR DEVELOPMENT CORP.
Megastar Development Corp. is an emerging resource company
engaged in the acquisition, exploration and development of mineral
properties in Canada. Megastar owns gold and base metal properties
in Quebec and British Columbia. For further information, investors
and shareholders are invited to visit the Company's website at
www.megastardevelopment.com or call the office at 604-683-6648.
ON BEHALF OF THE BOARD OF DIRECTORS
Dusan Berka, P.Eng., President & CEO
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 news release.
Contacts: Megastar Development Corp. Dusan Berka, P.Eng.
President & CEO (604) 683-6648 (604) 683-1350 (FAX)
www.megastardevelopment.com
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