VANCOUVER, BC / ACCESSWIRE / October 12, 2016 / Arctic Star Exploration Corp, (TSXV: ADD) ("Arctic Star" or the "Company") announces that the board of directors passed a resolution on October 11th, 2016 to proceed with a consolidation of common shares of the Company on the basis of four (4) pre-consolidated shares for one (1) post consolidated share (the "Consolidation"). The consolidation was approved by the Company's shareholders at the Annual and Special Meeting held on June 23, 2016. The transaction is subject to TSX Venture Exchange ("TSXV") approval.
Currently, a total of 97,363,073 common shares are issued and outstanding. Accordingly, upon the Consolidation becoming effective, a total of approximately 24,340,768 common shares will be issued and outstanding. There is no maximum of authorized common shares.
Computershare Investor Services Inc. ("Computershare") will mail letters of transmittal to the shareholders providing instructions on exchanging pre-Consolidation share certificates for post- Consolidation share certificates. Shareholders are encouraged to send their share certificates, together with their letter of transmittal, to Computershare in accordance with the instructions in the letter of transmittal.
The Company proposes to issue, on a post-consolidated basis, up to 20,000,000 units at $0.06 per unit for gross proceeds of up to $1,200,000. Each unit will be comprised of one common share and one common share purchase warrant, with each whole warrant exercisable into one common share at a price of $0.08 for a period of two years from closing.
All securities will be subject to a four-month hold period from the closing date. Finder's fees may be paid in accordance with the TSXV policies. The private placement is subject to the approval of the TSXV.
Proceeds of the private placement will be used to develop existing properties, potential future acquisitions and general working capital.
The Company also announces the grant of 1,225,000 options to purchase post-consolidated shares of the Company as per the Company's stock option plan at a price of $0.06 per share.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARCTIC STAR EXPLORATION CORP.
Patrick Power, President
This news release contains "forward-looking statements" including but not limited to statements with respect to Arctic Star's plans, the estimation of a mineral resource and the success of exploration activities. Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the completion of our planned share consolidation, our planned private placement and our planned use of proceeds. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Factors that could affect our plans include our potential inability to raise funds as intended, and in such event we may require all funds raised, if any, to be used for working capital rather than the intended uses as outlined. Accordingly, readers should not place undue reliance on forward-looking statements. Arctic Star undertakes no obligation or responsibility to update forward-looking statements, except as required by law.
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.
SOURCE: Arctic Star Exploration Corp