ATLANTA, Jan. 18, 2007 (PRIME NEWSWIRE) -- Nortia Capital Partners, Inc. ("Nortia" or the "Company") (Pink Sheets:NCPN) is pleased to provide a review of the company's continued business developments and progress during 2006. The year brought many positive developments for Nortia, which are outlined below.
In January, 2006 Bruce A. Hall joined Nortia as Chief Financial Officer. Mr. Hall brought to Nortia over 20 years of experience as a financial executive and has served as a senior financial executive with extensive experience in the real estate, energy, financial services, consulting and manufacturing industries. Mr. Hall began his career in public accounting with Arthur Young & Company, a predecessor of Ernst & Young LLP. Mr. Hall is a licensed Certified Public Accountant ("CPA") in the State of Texas, a licensed Certified Management Accountant ("CMA") and holds a (BS/BA) from the University of Texas at Austin.
In May, 2006, Nortia announced that it had withdrawn its election to be regulated as a business development company ("BDC") pursuant to Section 54 of the Investment Company Act of 1940, as amended. The Company filed a Form N-54C with the Securities and Exchange Commission ("SEC") on May 2, 2006. This then enabled Nortia to begin operating as a merchant banking company, and as a result completed several certain transactions, which are detailed below.
All American Pet Company
On May 22, 2006, Nortia completed a transaction with All American Pet Company ("AAPC"), a developer and marketer of Super Premium Dog Food based in Encino, California. AACP has developed a commercial dog food that is specifically formulated for morning meals. Current product offerings are sold in supermarkets, with plans to sell the products in pet centers, mass merchants and veterinarian practices.
AAPC address the fastest growing segment of the $8.5 billion dry dog food market. The super premium dry dog food industry represents $1.1 billion in annual sales and nearly 10 percent annual growth, with higher growth for the morning meal due to veterinarians' recommendation for multiple daily feedings. In the U.S. alone there are 60 million dogs owned by 37% of all U.S. households. The U.S. dog population grows by an estimated 1.5% per year. In a poll taken by Yankelovich Research, 92% of those polled consider their pets as part of the family.
Nortia acquired a non-control equity interest in All American Pet Company receiving 750,000 shares, as well as warrants to acquire an additional 1,500,000 shares of AAPC common stock at $.50 per share. In return for the shares of AAPC, Nortia provides management assistance. In 2006, Nortia assisted AAPC in arranging for $1,772,000 in equity financing.
In May, 2006 All American Pet Company filed a registration statement with the SEC on Form SB-2. Nortia expects that the registration statement will be declared effective in early 2007.
Knight Energy Corp.
Also in May, 2006 Nortia completed a transaction with Knight Energy Corp. ("Knight") (Pink Sheets:KNEC). Nortia obtained a non-control equity interest in Knight, receiving 1,250,000 shares of Knight's common stock. Pursuant to an agreement between Nortia and Knight, Nortia provides merchant banking services that include advice on mergers and acquisitions, capital markets, public markets strategies and raising capital. In addition to the common stock that Nortia received for its services, Knight also granted Nortia 1,250,000 warrants to purchase Knight's common shares at an exercise price of $.50 per share, as well as 1,250,000 warrants to purchase common shares at an exercise price of $1.00 per share.
Knight is a holding company that operates and develops energy related businesses and assets. In March of 2006, Knight acquired a 75 percent equity interest in Charles Hill Drilling ("CHD"), an independent oil and gas services company that owns an executed lease agreement, among other assets, in Stephens County, Texas. The lease agreement contains approximately 160 acres that include four producing natural gas wells. Stephens County has been a successful producer of oil and gas over the last fifty years.
Knight also owns and operates its own drilling rig that it anticipates will be used to drill additional wells on the current leased property. By the end of June, 2006 Knight increased it ownership of Charles Hill Drilling to 100%.
In June, 2006 Knight, announced that it had executed a stock exchange agreement with Integrated Technology Group, Inc. ("ITGI"), which resulted in Knight becoming a publicly traded company upon the completion of the transaction, which occurred in November, 2006. In November and December, 2006 Knight announced the completion of two of the well's operating on its 160 acre property in Stephens County, TX.
Knight completed Natural Gas Well A-7 on the company's 160 acre property in Stephens County, Texas. Knight has a 100% working interest, subject to royalties and overriding royalties of approximately 19%. The A-7 Well was completed at the top of the Barnett Shale. Knight is now in the process of reducing the 'Frac' water and formation water in order to enhance production as the company is reducing the 'Frac' water and formation water, it is producing gas with trace signs of oil. Oil is not a product indicative of the Barnett Shale region and therefore will be studied to determine the possibilities of retrieving an additional natural resource from the property.
Knight also completed Natural Gas Well A-8 on the company's 160 acre property in Stephens County, Texas. Knight has a100% working interest, subject to royalties and overriding royalties of approximately 19%. Similar to the A-7 Well, the A-8 Well was completed at the top of the Barnett Shale or approximately 4,200 feet. Knight is now in the process of reducing the 'Frac' water and formation water in order to enhance production of the well.
In November, Knight acquired two additional properties.
The first executed lease agreement was for the control of approximately 1,000 acres of oil and gas rights in southern Pottawatomie County, Oklahoma. The specific prospect area is known as Salt Creek and lies within the Trousdale Field.
Knight is in the process of completing a three-dimensional seismic survey and study to locate oil or gas reserves and determine their value.
Additionally, Knight has performed preliminary investigation and evaluation of two other prospect areas in Pottawatomie County, Oklahoma. The preliminary results have led Knight Management to believe that additional detailed studies should be performed.
The second lease agreement was for a 100 percent working interest in approximately 400 acres of oil and gas rights in Stephens County, Texas, directly adjacent to the Knight's existing 160 acre leased property. Additionally, with the executed lease agreement, Knight received an option and a "right of first refusal" to the lease of an additional 3,100 acres adjacent to the 400 acres.
As evidenced by the above described activities, 2006 was a busy year for Nortia. Nortia anticipates increasing its merchant banking transactions in 2007 as well as continuing to provide value to its current client companies.
Forward-Looking Statements:
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the Company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices, and other economic factors relating to its investee companies and inadequate capital, competition, loss of key executives, and other economic factors related to its own operations. The Company assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.