HOUSTON, Nov. 28, 2007 (PRIME NEWSWIRE) -- BlueStar Health, Inc. (Pink Sheets:BLSH) announced today that the Company's principal operating business, Zeon Fuel, Inc., has received a commitment for a commercial credit facility that will enable Zeon to acquire enough retail fuel distribution centers, including truck stops and gas stations, to exceed the Company's growth projections over the next 3 years.
The signed agreement with Walker Commercial Funding (WCF), a respected international commercial lender, provides for commercial debt financing -- up to 100% loan-to-value (LTV) -- for each retail acquisition target location, contingent upon certain debt coverage conditions. The committed credit facility is non-equity-based and will not convert into any equity in BlueStar or Zeon now or at any time in the future.
Zeon's business strategy calls for the purchase or lease of targeted locations, either individually or in groups of locations, which will allow the Company to project growth and control sales with greater certainty. Chairman Naved Jafry commented, "Having the ability to secure locations quickly is important to our goal of getting the story out and introducing our customers to the benefits of biodiesel and other bio-fuels." He added, "For this industry to succeed in achieving more than a token level of sales, we must have a commercially viable network in place. This facility will allow Zeon to contribute substantially to that goal."
Brian Walker, Executive Vice President of Walker Commercial Funding said, "We are excited by the opportunity to support Zeon Fuel in its growth plan. While the financing metrics of each property or group of properties will be evaluated on a case-by-case basis, we have already secured private funding sources for Zeon's acquisitions that are not only well-versed in Zeon's business, but are also excited about making a difference in the environment as well."
BlueStar Chief Executive, Rick Greenwood stated, "It is very encouraging that our existing business and management team has garnered a commitment from WCF, particularly given the current credit environment. This funding represents a critical piece of our overall financing requirements and we are comfortable the terms fall nicely within the parameters of what we would be looking for in underlying performance of candidate locations."
Biodiesel Fact: Biodiesel is a proven fuel with over 30 million successful U.S. road miles, and over 20 years of use in Europe.
About BlueStar Health
BlueStar, through its wholly owned subsidiary Zeon Fuel, Inc., is engaged in the business of blending purchased bio-diesel and petroleum diesel fuels and distributing the blended product through retail outlets. The company intends to expand its distribution through owned and leased facilities as well as fuel contracts with retail outlets. For more information on BlueStar's primary operating entity, Zeon Fuel, Inc., please visit www.zeonglobalenergy.com
About Walker Commercial Funding
Walker Commercial Funding (WCF) is an international commercial funding source that offers comprehensive solutions to commercial financing needs that are often unavailable through banks or traditional commercial channels. For more information on WCF, please visit www.walkercommercialfunding.com.
Forward-Looking Statements
This news release includes comments that may be deemed forward-looking within the meaning of the safe harbor provisions of the U.S. Federal Securities Laws. These include, among other things, statements about expectations of future events or transactions, sales of products or performance. Forward-looking statements are subject to risks and uncertainties that may cause the company's results to differ materially from expectations. These risks include the company's ability to execute its business plan, having necessary financing in time to meet contractual obligations and support the business activity, and other such risks as the company may identify and discuss from time to time, including those risks disclosed in the company's current and future filings with the Securities and Exchange Commission. Accordingly, there is no certainty that the company's plans will be achieved.