April 7, 2008 - 5:19 PM EDT
Lotta Coal Announces Results of Majority Shareholder Consent and Corporate Update
Lotta Coal (PINKSHEETS: LCOL) (FRANKFURT: LC5) today announced that the majority shareholders held a special meeting and voted to approve the following:
New Board of Directors shall consist of the following:
Allen Soltis, Chairman
David Hayes, Director
Ronald Evans, Director
New Officers
David Hayes, President & Chief Executive Officer
Marc Gagnon, Chief Financial Officer
Appointment of Auditors:
LaPosta & Associates Inc. were approved and appointed as the auditors of the company.
Merger
The majority shareholders have approved the merger of Lotta Energy Acquisition Corp. and Lotta Energy Corp., whereby the surviving entity shall be Lotta Energy Corp.
Name Change
The majority shareholders have approved the name change from Lotta Energy Corporation to Snowy Owl Energy Corporation. The previous name change had not been reflected by a new ticker symbol due to the merger of Lotta Energy Acquisition Corp. and Lotta Energy Corp. not being completed at the State of Florida Level.
Reverse Split
The majority shareholders have approved a reverse split of the outstanding shares of the company on the basis that each six (6) shares of common stock shall become one (1) share of common stock without changing the par value of the shares of the corporation, provided that no fractional shares of the corporation shall be issued in connection with the reverse split. There is a total of 153,333,255 common stock outstanding, whereby post reverse split a total of 25,555,542 common shares will be outstanding.
Warrants/Subscription Receivable
A total of 228,000,000 were deemed outstanding on a fully diluted basis due to the subscription receivable from Cunningham-Adams Small Cap Fund I, whereby Cunningham-Adams Small Cap Fund I have agreed to cancel said warrants to allow the company to restructure and allow for greater financing. Currently a total of 153,333,255 common shares are outstanding on a fully diluted basis and a total of 25,555,542 common shares on a fully diluted basis post reverse split of 6 to 1.
Farm-out
The company entered into a participation agreement with an Oil & Gas Company based in Switzerland for the drilling of 2 wells on its Lesser Slave Lake (Swan River) property but the Swiss company has not been able to cover the cash call and all agreements have been terminated. The express intent by the Swiss company had been to acquire up to 40% of Lotta for a total of $15 million. The company has obtained alternative funding for the drilling requirement on Lesser Slave Lake and additional funding is being negotiated with Cunningham-Adams Small Cap Fund I.
About Lotta Coal, Inc.
Lotta Coal, Inc. is a unique oil and gas company with three separate wholly owned operating subsidiaries, each with rights to explore and develop oil and gas resources in partnership with different First Nations commercial entities in Northern Alberta, Canada. The Company is publicly traded on the over-the-counter market under the Ticker symbol LCOL, and in Frankfurt LC5.
Shares Outstanding: 153,333,255
Shares Authorized: 400,000,000
Approx. Public Float: 22,000,000
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
Contact:
Ron Evans
Chief Financial Officer
info@lottaenergy.com
www.lottaenergy.com
