CLEVELAND, July 1, 2005 (PRIMEZONE) -- Liberty Self-Stor, Inc. (OTCBB:LSSI) announced today that the Company changed its name to John D. Oil and Gas Company, effective June 27, 2005. The Company has also applied for a change in its trading symbol with The Nasdaq Stock Market and will issue a press release upon the issuance of its new trading symbol.
Prior to the actions that precipitated its name change, the Company was operated in a manner that permitted it to elect to be taxed as a real estate investment trust (commonly referred to as a "REIT"), as that term is defined by Section 856(a) of the Internal Revenue Code of 1986, as amended. The primary benefit in electing REIT status under the IRS Code is that it generally permits the Company to avoid federal income tax, thus subjecting REIT shareholders to only one level of tax (e.g., on distributions from the Company).
In conjunction with the name change, the Company approved a change to its business plan to permit it to enter into the business of extracting and producing oil and natural gas products. The Company will focus its efforts on drilling new oil and gas wells in Northeast Ohio and Western Pennsylvania. The Company can not guarantee success under the new business plan as drilling wells for oil and gas is high-risk enterprise and there is no guarantee the Company will become profitable. In addition to the new line of business, the Company intends, at the present time, to retain the two facilities currently owned by the Company. The facilities are located in Painesville, Ohio and Gahanna, Ohio. The Company may, if business and time warrant, sell the facilities in the future.
The change in the Company's business plan will result in the loss of the Company's REIT status in 2006. In order to maintain REIT status, the Company must satisfy at the end of each fiscal quarter a variety of tests with respect to the assets and income of the Company. The Company anticipates that it will be able to satisfy all such tests, and comply with all other requirements of the Code with respect to maintaining REIT status, throughout calendar year 2005. The Company expects that it will cease to qualify as a REIT in 2006. However, no assurance can be given that the Company will not lose or terminate its status as a REIT during 2005 as a result of the change in its business plan. If the Company does lose its REIT status in 2005, the tax consequences to the Company and its shareholders may be adverse. The Company is in the process of reviewing the tax consequences and will advise its shareholders with respect to these consequences if, for reasons the Company does not currently anticipate, the Company is unable to maintain its status as a REIT in 2005.
Forward-Looking Statements
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors, including risks related to the Company's future business plans, that are beyond the Company's ability to control or estimate precisely. These and other risk factors are detailed from time to time in the Company's SEC reports and filings, including its annual report on Form 10-KSB, quarterly reports on Form 10-QSB and periodic reports on Form 8-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.