United Resource Holdings Group, Inc. (URHG)

[themtharhills]

If you recall recent press releases, United Milling needed a capital infusion to obtain new equipment before it could move forward. Thus, it was a negative asset for URHG. If it was not producing, then its monthly rental cost and any other expenses were probably a significant drag on the URHG books. Now, it appears the joint venture partner will be paying the rent, plus cutting in United Milling on some percentage of what it processes in the building.

This means United Milling is no longer a negative entry on the URHG books, but is now a (small) profit center for URHG. I assume that when more money comes in, either in the form of an investor or by money it is paid by the joint venture partner, United Milling would then obtain any necessary new equipment and resume its own processing. That would change it from a small profit center into a large profit center.