FuelStream, Inc. (FLST)

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Fuelstream Discusses Strategy for Retiring Convertible Investment Notes



Fuelstream, Inc. (QB) (USOTC:FLST)
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SUNRISE, FL--(Marketwired - Dec 2, 2013) - 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:


Issuance Date Principal
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."