Lot78 Update: Unauthorized Listing on Berlin Boerse
NEW YORK, April 26, 2013 /PRNewswire/ -- Lot78, Inc., would like to notify its investors and regulators that it has come to our attention that the company was listed on the Boerse Berlin Stock Exchange ("BBSE") by an unidentified third party, without our approval, consent or knowledge. The company did not authorize or direct any broker on the BBSE to act as a market maker for the company's common stock. Accordingly, we will be initiating contact with the BBSE to demand the immediate delisting of the Company's stock from the BBSE.
Company counsel has advised us that the BBSE is one of the few exchanges in the world that allows listing and trading of a company's stock without the consent or authorization of the company being listed. This practice may facilitate both domestic and foreign brokers in circumvent restrictions imposed by both the Financial Industry Regulatory Authority ("FINRA") and the Securities and Exchange Commission relating to the trading practice referred to as "naked short selling." Short selling is a trading practice whereby investors borrow stock from a broker to sell in the hopes that the stock price will decline before they have to return the share to the broker to cover their position. Simply stated, "naked short selling" involves groups of people working in concert to manipulate the market in order to force a company's share price lower. Naked short sellers can list an OTCBB company on the BBSE in order to delay delivery of shares under the short position.
The company believes this BBSE listing is the first step in what will be a significant naked shorting attack directed at the company. We believe that this attack may culminate in a net short position exceeding all shares owned by investors in street name.
Accordingly, the company through its counsel will be contacting the BBSE and the broker sponsoring the listing in order to delist immediately the company's stock from the BBSE. The company reserves all rights to pursue legal action against the broker sponsoring this listing and any market maker that has engaged in naked short selling in direct violation of Regulation SHO.
Further, we would also like to inform both regulators and our shareholders that there is no valid reason for any failure to deliver to persist in the securities of the company. Further, we believe that it is in the best interest of our shareholders to ensure that the company sanctions any listing of our stock.
The company will continue to focus on building strong shareholder value by growing our core brand.
About Lot78, Inc.
Lot78, Inc. is a trend-setting leader in the design, marketing, distribution and sale of urban apparel – retailing under the brand name "Lot78" in five continents, including: North America, Europe, Asia, Australia, and South America. Lot78 has been featured in US Weekly, Elle Magazine, Financial Times, Harrods Magazine, The London Evening Standard, and Grazia Magazine as an emerging global brand.
Lot78, Inc. is quoted on the OTC in the United States of America under the symbol LOTE.
Forward-Looking Statements This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, Lot78's products to gain market acceptance, and the difficulties faced by an early stage retail fashion company in the competitive retail fashion industry. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the Company's recent current reports on Form 8-K, our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic and current reports filed from time to time with the Securities and Exchange Commission.
SOURCE Lot78, Inc.