Green Energy Enterprises Inc. (GYOG)

[Verity]

From Shannon Newby to Anvil, etal: WITH LOVE

Verity, Can you post Newby's response to your buddy Anvil it seemed to piss him off and he doesn't have an ihub account. I showed him the link below.
This came directly from Shannon: Ty

----- Forwarded Message ----
From: Shannon Newby <[e-mail]>
To: [e-mail]
Sent: Sat, June 26, 2010 11:35:10 AM
Subject: Fwd: this is what is killing the stock fyi!
"ATTENTION:
To all so called conventional bankers especially (IHUB =Anvil), you are welcome to study my financing structure for the QASP deal for free.

The first investment grade private bank that is securing the AAA Trust company is totally secured by the net equity valuation of the assets being purchased by QASP. These assets are well in excess of $165mm and more importantly Newby & Associates, Inc. warrant execution price is substantially lower than the post financing/acquisition valuation yet much higher then current market valuation. The worst-case scenario for QASP's inability to raise enough capital in a secondary offering by maturity of the loan, will result in heavy dilution from the exercised warrants. Which by the way is enough to cover 100% of principal and interest on the loan.

Unlike most conventional lenders, I believe in the GREATER RISK versus REWARD ratio. Most Fortune 500 companies would never agree to such a substantial dilution to raise capital unless they have no other alternative. But, since this is not a Fortune 500 company, I will assume this structure is acceptable.

Keep in mind that the net equity valuation post financing/acquisition is more than double the loan amount.

Now if we take into account next years EPS for this newly consolidated business, I am betting that QASP stock can be sold at a multiple of those earnings which is a significant premium to today's share price.

This structure only works for companies who can acquire enough net equity in their acquisition targets to cover the dilution caused by the warrants being executed in the future to repay the loan in the event of a loan repayment deficiency by the borrower. If QASP's net equity post financing/acquisition was less than double the loan's principal and interest coverage, I would not be able to fund.

My structure is solely relying on my ability to dilute the net equity at a much higher stock valuation versus selling the newly acquired assets in a fire sale, even with my first position lien.
I have more than enough leverage capability to exercise the warrants and exit the loan position.

As far as the $10mm line, I decided to close both loans simultaneously due to the time is of essence put on the company.

This has been most interesting and I look forward to further educating the conventional and soon to be out work bankers.

Remember the name NEWBY & ASSOCIATES, INC. I have a feeling the WORLD is going to take notice after QASP.
Best Regards,
Shannon Newby
President
Newby & Associates, Inc.”

From: Verity [mail to: [e-mail]]
Sent: Thursday, June 24, 2010 2:10 PM
To: Bert Watson Jr
Subject: what do you think of this one ?????????
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51668898