CoreStream Energy, Inc. (fka ZLUS)

[Biochemist2002]

Settling debt proves profitable for CoreStream:

I assume IR was referring to the shares previously issued to settle the outstanding legacy debt, as mentioned in the February 21st PR. I don't know that additional shares were paid out since then. Seeing as how some of the former creditors are now financiers in CoreStream's new ventures, I would assume that payment of the remaining former debt was worked into the finacing deal (i.e. a percentage of profits, etc.). The second sentence in the quote below is why they did not use money from the financial backers to pay down the remaining debt.

CoreStream Energy, Inc. (PINKSHEETS: ZLUS) is pleased to announce that it has received an initial multi-million dollar funding commitment from an institutional investor on a project by project basis. The funds will be used for investment in the acquisition of producing oil and gas wells and leases and to expand current production. This financial commitment is subject to the investor conducting its customary due diligence evaluations on each project. It is significant to note that the hedge fund making the commitment was a prior creditor and litigant of Zealous, Inc. Its financial decision demonstrates its confidence in the management, direction, and commitment of CoreStream Energy to oil and gas exploration, production and energy trading. It also shows that the Company's dedication for the last three years to work with its creditors and resolve debt issues can have the unforeseen benefit of returning previous strategic partners to participate in the Company's future growth. Additional funding has also been obtained from another source to expand and enhance the corporate infrastructure and management team. Similar commitments from various other financial sources are in discussion and negotiation.

...Mr. Ault said, "Our investors can be assured that we will continue to concentrate on expanding the energy program we began last year. As our primary corporate activity, significant progress has been made to line up funding sources and secure new opportunities. We are committed 100% to the growth and development of CoreStream Energy. We have shown our investors considerable progress on all fronts, and will continue to do so in the coming weeks. We continue to expand and cultivate relationships with recognized energy experts who will advise us in the field. The Company expects to see a significant acceleration in its growth in 2011 based on changes in the marketplace, emerging new opportunities and the active interest expressed by funding partners."

...The Company does not see any need to and it does not have any plans to do a reverse split of the common shares in 2011. As of January 10, 2011 the Company's current common stock share structure is 1.5B authorized shares and 1,390,162,856 outstanding shares. Increases in shares issued have resulted from extraordinary opportunities to settle outstanding legacy debt and the Company will continue to be opportunistic at issuing equity to pay off debt. The Company believes this is a critical process to the future of the Company and elimination of debt will continue to be a top priority for CoreStream Energy in 2011.

http://www.marketwire.com/press-release/CoreStream-Energy-Announces-New-Institutional-Funding-Management-Changes-Limited-Update-1399098.htm

The Company today filed its 10Q for the period ending 03/31/2010 and is pleased to report a profit of $118,858 due to extraordinary gains. The same quarter in 2009 resulted in a loss of $621,405. This is the first financial filing since shortly after the Company changed its name, committed to the oil and gas industry, and began restructuring and eliminating its debt. It is expected that the financial reports for the remainder of 2010 will also have extraordinary gains due to the Company's continued effort to reduce its debt. No revenue from the oil and gas operations nor the newly announced CoreStream Trading unit are reported in this filing. The Company is committed to fulfilling its financial reporting requirements and getting current as quickly as possible.

"The Company is taking deliberate and measured steps towards its goal of reducing and paying off its indebtedness and recovering from the financial crisis of 2008. Although the Company has experienced a rough road in its effort to move forward and has not been as timely as it wishes, our dedicated staff and consultants remain vigilant and diligent in obtaining our goals and objectives. I firmly believe the Company is on the right path in resolving its obligations, repairing relationships when it can, and moving forward to achieve success in the oil and gas industry. We will continue our efforts to remain as transparent as possible and communicate our progress with our shareholders and creditors as it develops," said Milton C. Ault, III, President, CEO and Chairman of CoreStream Energy, Inc.

http://www.marketwire.com/press-release/CoreStream-Energy-Inc-Launches-Web-Site-Files-Financials-1404652.htm

Note: In my initial comments (above), I said "I assume..."

Peace,
Bio