LPH - RED CHIP WILL COST THEM
Longwei (LPH)
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor’s objectives, other securities holdings, financial situation needs, and tax status. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Longwei Petroleum Investment Holding Ltd. (“LPH”) is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. LPH agreed to pay RedChip Companies, Inc., a fee of $5,000 per month in cash for six (6) months of RedChip Visibility Program and investor relations services, to be increased to $7,500 per month when the stock price reaches or exceeds $2.00 for three consecutive trading days and $10,000 per month when the stock price reaches or exceeds $2.25. LPH also agreed to pay 50,000 shares of restricted common stock when the stock price reaches or exceeds $2.60 for three consecutive trading days and 50,000 shares of restricted common stock when the average monthly closing price reaches or exceeds $3.00. RedChip Visibility Program services included the preparation of the equity research report(s). The equity research report(s) were prepared for informational purposes only and were paid for by the company portrayed in the report. Information contained in the equity research report(s) is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. For the period February 2008 through February 2009, LPH agreed to pay RedChip Companies, Inc. 300,000 shares of free-trading stock plus $30,000 in cash per quarter for investor relations services. For the 12-month period March 2009 through March 2010, LPH agreed to pay RedChip Companies, Inc. a monthly fee of $15,000 in cash and 1.5 million shares of Rule 144 stock for investor relations and consulting services. For the period April 8, 2009 through June 8, 2009 LPH increased the monthly cash fee paid for investor relations services from $15,000 per month to $20,000 per month. For the period July 8, 2009 through September 8, 2009 the monthly cash fee of $20,000 was reduced to $15,000 in cash for investor relations services. For the period July 30, 2009 through October 8, 2010 RedChip received an additional 846,800 shares of free-trading stock for investor relations services. For the period of September 8, 2009 through October 8, 2010 the monthly cash fee of $15,000 was reduced to $10,000 in cash for investor relations services. RedChip received a one-time IR consulting fee which includes expenses of $295,000 for 18 months of service. For October 2010 through October 2011, RedChip agreed to pay RedChip Companies, Inc. a fee of $30,000 per month in cash for twelve (12) months of RedChip Visibility Program and investor relations services. RedChip Companies, Inc. invested in the issuer and owns or owned up to 500,000 shares of the issuer’s stock that was registered. These shares may be sold during the time it represents the company for investor relations activities. RedChip may sell anywhere from 5,000 shares to 200,000 shares during any two-month period of its investor relations activities, depending upon the liquidity of the stock. RedChip Companies, Inc., employees and affiliates may maintain positions and buy and sell the securities or options of the issuers mentioned herein.
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