FOUNTAIN VALLEY, CA--(Marketwire - April 7, 2011) - The following is a letter to shareholders from Milton C. Ault, Chairman, President and Interim CEO of CoreStream Energy, Inc. (
Dear Fellow CoreStream Energy Shareholder:
I would like to update you on recent events, the ongoing challenges facing CoreStream, and the Company's plans for 2011.
Recent Events and Ongoing Challenges
First, I want to express my continued appreciation for your support as a fellow shareholder and address the reasons why trading was recently halted on CoreStream March 31, 2011 by the Securities and Exchange Commission ("SEC") as we understand them. Up until this date, the Company was quoted on OTC Link (previously the "Pink Sheets") operated by OTC Market Group, Inc. under the ticker symbol "ZLUS.PK."
Put simply, the Company failed to file certain periodic financial reports. In addition, the SEC has some questions regarding statements made by CoreStream in press releases including the acquisition of certain oil wells.
Here are the facts as CoreStream sees them:
Fact: CoreStream has not filed its 10Q for the second quarter of 2010;
Fact: CoreStream has not filed its 10Q for the third quarter of 2010;
Fact: CoreStream current management only recently learned of some SEC correspondence addressed to the former CEO from last year that was not properly answered.
CoreStream understands why the SEC has taken issue with these circumstances and respects their decision to effectuate the temporary suspension.
At this time, CoreStream is working with an attorney to properly respond to the SEC and looks forward to providing responses and underlying support documentation beginning April 8th to satisfy the SEC's concerns. In addition, the Company has hired additional staff to help CoreStream become current on its Form 10-Q filings. Moreover, the Company is in the process of negotiating a timeline with the SEC for the filing of these additional documents.
CoreStream management and employees have committed to resolving all outstanding issues as soon as practicable. The Company will do its best to remain as transparent as possible and always attempt to be in full compliance with all regulations.
We thank the SEC for giving the Company time to remedy the situation and are ready to answer any questions the SEC may have regarding these endeavors.
CoreStream will provide further updates as needed, appropriate, or as required by law.
The Company's Plans for 2011
I am hopeful that once the Company is current on its filings and we have adequately satisfied the SEC's concerns we can focus on new opportunities and improving investor value through our activities in the oil and gas industry.
Thank you for your continued support.
Best regards,
Milton C. Ault
Chairman/President/Interim CEO
CoreStream Energy, Inc.
About CoreStream Energy, Inc.
CoreStream Energy, Inc., a Nevada Corporation based in Fountain Valley, CA is an independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas from onshore conventional properties in Louisiana, Mississippi, Kentucky, and Tennessee. It currently trades on the OTC Markets as ZLUS.PK with a symbol change expected soon from FINRA.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC"). Such statements include those concerning CoreStream Energy, Inc.'s strategic plans, expectations and objectives for future operations. All statements included in this press release that address activities, events or developments that CoreStream expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions CoreStream made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond CoreStream's control. Statements regarding future production, revenue and cash flow are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, commodity price changes, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes and the potential lack of capital resources. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.
Contact Information:
Contact Info:
CoreStream Energy, Inc.
(714) 418-1700
Gary Patterson
Investor Relations
IR@CoreStreamEnergy.com
(714) 369-2933