|By Marketwired .||
|December 2, 2013 09:30 AM EST||
SUNRISE, FL -- (Marketwired) -- 12/02/13 -- Fuelstream, Inc. (OTCQB: FLST) ("Fuelstream" or the "Company") discussed its strategy to redeem and retire certain convertible investment notes issued by the Company to Asher Enterprises, Inc. ("Asher") in the aggregate principal amount of $174,000 (collectively, the "Notes") as summarized below:
Principal Issuance Date Amount ------------------------------------- ------------------------------------- July 19, 2013 $ 78,500 August 26, 2013 53,000 October 23, 2013 42,500 ------------------------------------- ------------------------------------- TOTAL $ 174,000
Each of the Notes are unsecured, bear interest at the rate of 8% per annum, and mature approximately 9 months after issuance. The first and second notes, both of which were drawn in the third quarter, are summarized in the Company's balance sheet and accompanying notes, which are included in the Company's quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on November 14, 2013.
The Notes are convertible into common stock of the Company, at the option of Asher, 180 days following the date of issuance at 60% of the average of the lowest three trading prices for the ten days prior to conversion, provided however, that in no event may Asher convert into a number of shares that would result in Asher holding greater than 9.99% of the Company's outstanding shares of common stock. Accordingly, the first of the Notes will become convertible on January 19, 2014, with the second and third notes becoming converible on February 26 and April 23, 2014, respectively. The notes are redeemable by the Company at 130% of the principal amount plus interest, as accrued until 180 days from the date of issuance.
Commenting on the Notes and the Company's efforts to secure alternative financing, Robert Catala, Chief Executive Officer of Fuelstream, stated: "It is our intention to redeem the notes issued by the Company to Asher, and we are actively seeking long-term funding from strategic partners and investors to enable the Company to achieve this objective. Such funding may consist of unsecured debentures issued by the Company or an equity investment, depending on the effective terms and conditions that we are able to negotiate. We intend to keep our shareholders apprised of our efforts."
Fuelstream is an operating fuel logistics company that concentrates its supply chain management efforts in the distribution of aviation fuel to corporate, commercial, military, and privately-owned aircraft throughout the world. Currently, a majority of the Company's fuel and related services are concentrated in the sourcing, purchase and delivery of (Jet-A) fuel "into the wing" of private and commercial aircraft at various airports. With offices in Sunrise, Florida and Johannesburg, South Africa, the Company intends to supply a variety of ground services either directly or through its affiliates, including concierge services, passenger and baggage handling, landing rights, coordination with local aviation authorities, aircraft maintenance services, catering, cabin cleaning, customs approvals, and third-party invoice reconciliations. For more information please visit www.thefuelstream.com.
Safe Harbor and Forward-Looking Statements
This press release contains certain forward-looking statements regarding possible future circumstances. These forward-looking statements are based upon the Company's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, any risks and uncertainties with respect to the Company's operations, as well as those contained in the Company's quarterly, annual, and periodic filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statements are material.