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TreasureHunters. BeatTheStreet. PennyWatch. PHAR. Hidden Gem. Info:
http://investorshub.advfn.com/boards/board.aspx?board_id=19994
http://investorshub.advfn.com/boards/board.aspx?board_id=15872
http://investorshub.advfn.com/boards/board.aspx?board_id=20776

PharmStar Outstanding Common Stock Reduced by 50%
* Reuters is not responsible for the content in this press release.
Mon Oct 17, 2011 9:20am EDT


WILSON, NC, Oct 17 (MARKET WIRE) --
PharmStar Pharmaceuticals, Inc., (PINKSHEETS: PHAR) (the "Company") today
announced that its management and Board of Directors have directed a
"rollback" of certain large blocks of shares of PharmStar Pharmaceuticals
common stock held by management. This "rollback" was effective as of
today.

The "rollback" means that the Company's Chairman and CEO, Howard Phykitt,
has canceled and returned 535 million shares of his total holdings of the
common stock of PharmStar Pharmaceuticals to the Company's treasury. He
has accepted a series of warrants as follows:


-- A 5 year warrant to purchase 15,000,000 shares at $0.05 per share
beginning immediately;
-- A 5 year warrant to purchase 15,000,000 shares at $0.10 per share upon
the closing of an initial round of financing, such financing planned
to be $5 million and targeted to close within 150 days;
-- A 5 year warrant to purchase 15,000,000 shares at $0.15 per share upon
the closing of a follow-on round of financing, such financing planned
to be $2 million and targeted to close within 6 months after the
initial round;
-- A 5 year warrant to purchase 15,000,000 shares at $0.20 per share upon
the commencement of the Company's operations and production of its
products.



Additionally, the Company's Board of Directors has approved the
reduction of authorized shares of common stock from 1,001,184,352 to
650,000,000.

Prior to the rollback, there were 998,879,352 issued and outstanding
shares of common stock of the Company. As a result of the rollback, there
are now 435,000,000 issued and outstanding shares of common stock of the
Company, plus 15,000,000 set aside for the initial warrants, plus
55,000,000 shares set aside for future financings. This means that every
shareholder of the Company now owns a greater percentage of the Company
by a factor of approximately 2. The reduction of the total outstanding
shares of the Company implies a greater share value for the holdings of
the non-majority shareholders.

PharmStar CEO Howard Phykitt commented, "I am committed to preserving
shareholder confidence and value to our Company. I sincerely appreciate
the many investors who believe in our products and what it is that we
plan to achieve. In the interest of maintaining shareholder value and
adhering to our promise of limiting the number of authorized shares of
common stock, I am surrendering the majority of my holdings of stock back
to the Company's treasury, which I trust will only serve to increase
shareholder value."

The primary purpose of the rollback is to spur the completion of the
Company's funding.

Mr. Phykitt stated, "We have been negotiating for about 45 days on the
best way to complete our financing for our expected rollout of Aquaprin
next year, and it became clear that the market would best support this if
we decreased the amount of shares available. I was determined that this
would not be done on the backs of those that have supported this company,
so I convinced all of the original, large shareholders to retire a large
percentage of shares -- including me." Mr. Phykitt continued, "I made a
promise to all shareholders that this Company would raise the needed
capital and execute its business plan without undue dilution of its
shareholders.

A feature of the rollback plan will allow Mr. Phykitt to purchase up to
60 million shares over time through the warrant feature.

"The warrant structure highly incentivizes me to lead the Company to a
share price above the $0.25 mark," Mr. Phykitt concluded.

*****Take a Look at the PPS and the Share structure, and let me know what you think?
http://investorshub.advfn.com/boards/board.aspx?board_id=6832

Thanks,
JediJazz