PYST Paystar Corp., a Nevada corporation. How much did you pay for the stock? Hopefully not much. If you picked it up in the .000x range, it might be interesting to hold.
I have some problems with Paystar.
As you know, they issued their last PR in June saying that they appointed Ronald Howard as its new President. I checked with the Secretary of State and indeed this is correct. But also listed is Clifford Goehring, who I tracked to Woodbridge, California. Clifford is Director of Paystar, he's also officers of Paystar Communications, Paystar Financial Services, and Paystar Infostations, all Nevada corps.
A background search revealed he is associated with a Paystar in Lodica California as well as companies such as Pacific Financial Solutions, Quantel Communications, and others.
When you call Paystar in California (209 339 4460), their autoattendant answers "Infostar." Infostar was supposed to be spun off as a public company in 2005, but I couldn't find them having a symbol. The phone number on the PR now goes to "Pacific Card Services," Clifford's other company.
So I then called Clifford at home (209 333 0517) and he answered. Clifford's 76 years old. I asked if he was associated with Paystar, he said he was. He asked who I was, and I told him an investor. At this point he hung up on me. I called back and talked to someone else who told me Clifford wasn't in. I said I just spoke to him. The male told me Clifford left. I asked if Clifford was affiliated with Paystar, and the male did not deny that he was and asked why I wanted to know. I said I was an investor and I'm trying to find out if the company is still alive. I said that Clifford is listed as the contact on three affiliated company's and is the agent for the California office. They told me that they would give the message back to Clifford.
The last press release infers that the company is trying to liquidate its assets. In the event that the company "liquidates" and they magically sell to "Infostar," then you know that Clifford and the gang just moved the assets to their new company, and that Paystar didn't do what they prmised in their PR. The other alternative is maybe they are revitalizing themselves, but I'd be skeptical.
Paystar's Arizona telephone numbers go to Ronald Howard's voice mail, but they are active. Also 877-Paystar goes to Howard. I found a few Ronald Howards in the area of Chandler and will be investigating to see which one is which.
The shares were halted by the SEC for 15 days simply because they did not file paperwork since 2003, not because of any active investigation or anything.
I do have a big problem with this company. The Nevada Secretary of State says that their authorized shares are 200,000,000 but Pink Sheets states that they have 1,500,000,000 authorized shares with most outstanding. I think anyone who bought this company deserves an explanation for that.
2005 PR about spin off:
PayStar to Spin-off InfoStations (Kiosk Division)
LODI, Calif., Jan. 4, 2005 (PRIMEZONE) -- PayStar Corporation (Pink Sheets:PYST), one of the nation's growing providers of stored value debit cards, bank loading centers for prepaid ATM debit cards and kiosks marketing and management, announced today the signing of a binding LOI to spin-off (divestiture) its InfoStations kiosk division. In a collective offer from Now, Right Now, LLC (NRN, PYST strategic kiosk partner) and KNG Funding, with a multi-million dollar financing commitment for up to 2000 kiosk installations in 2005, PYST has begun due-diligence on the spin-off and analysis of the two companies combined proffer. The new company would be publicly traded and would be named INFOSTAR Systems, Inc. Upon successful conclusion, PayStar shareholders would receive a yet to be determined stock dividend and PayStar Corporation would retain an equity position in the new company.
William D. Yotty, CEO and Chairman of PayStar, stated: "This divestiture of PayStar's InfoStations kiosk division has been under consideration for some time now; the new company has commitments for nearly 2000 kiosk deployments in excellent retail environments. PayStar Corporation will retain considerable equity in INFOSTAR Systems Inc. and our shareholders will boost their stock portfolios by the stock dividend PYST intends to tender upon the successful closing of this transaction."
Now Right Now, LLC's (NRN), CEO, Charlie Castro commented, "This bringing together of PayStar's kiosk division, NRN's nationwide kiosk location deployment contracts and adequate funding from KNG Investors will create one of the nation's largest kiosk companies." Mr. Castro added, "The first year sales and management revenues of INFOSTAR Systems, Inc. are expected to exceed $20,000,000."
PayStar is anticipating completion of this spin-off by the end of Q1, with INFOSTAR Systems Inc. shares trading on the OTC market by mid year.
About PayStar
PayStar Corporation (www.paystar.com) provides its distributors and clients with a suite of prepaid, stored value products, national bank load center locations and Kiosk marketing and management. PayStar's GLOBALCash, Inc. (www.globalcash.us) distributes prepaid ATM debit and stored value cards that can be used just like regular credit cards. Prepaid ATM debit cards can be used everywhere major credit cards are accepted (stores, restaurants, theaters) and online. PayStar is a partner in a prepaid ATM debit card program for a national government project that will enable millions of underserved and subsidized housing individual's access to prepaid ATM debit cards. PayStar's corporate and distributor sales, as well as mergers and acquisitions, will continue to drive growth.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of known and unknown risks and uncertainties that may cause the company's actual results or outcome to be materially different from those anticipated and discussed herein. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks within the regulation of the industry.
CONTACT: PayStar Corporation
B. Thomas
(209) 339-0486
