Susglobal Energy Corp (SNRG)

[Horsin around]

9 million. Wtf. Shut down by the government bc of environmental issues. This turned to complete shit. What incentive does any company have in investing in this company? What I once thought was going to be my best investment of my life turned into a disaster. The ceo has a huge stake in the company succeeding so at minimum I know he's probably working around the clock to get things going

[synaphai]

At least $9 million in total lawsuits against the company.

That's what has been on court dockets this year. At least two have been already decided in favor of the plaintiffs because Marc mounted no defense against them, likely because he couldn't afford attorneys and probably because he realized that he couldn't win anyway.

I found a default judgement against Susglobal for $1.3 million USD plus 24% interest since 11/22 that was handed down in May. The suit was brought by an investor who bought a note in 2021 and only got a partial payment in return.
https://cases.justia.com/new-york/other-courts/2024-2024-ny-slip-op-31836-u.pdf?ts=1717190475

The Belleville power company won a default judgement against Susglobal for $378k CAD earlier this year and the same could have happened with the $4.5 million USD suit brought by different noteholders because the 10Q said that Susglobal was "unable to retain counsel". So it seems likely that Marc is on the hook for another $4.5 million.

There is still the $3.2 million CAD suit brought by the Hamilton contractor and another for $120k CAD brought by Susglobal's former auditor that are waiting to be adjudicated. Susglobal has provided no attorney for either suit.

Plus there are likely $5.2 million in mortgage payments currently past due that could create more lawsuits against the company this year..

The company is being absolutely crushed by debt and, as much as I hate to say it, I really don't see any hope for survival.

[stoneroad]

Neo, anything new from Marc?

[synaphai]

Yeah Belleville is not operating and hasn't been since January.

First, Susglobal lost its letter of credit last year, which is a guarantee required by the Ministry of the Environment in part to show that the company can pay for cleanup in case something goes wrong environmentally.

Then two things went wrong environmentally: there was a buildup of ammonia in one of the buildings at Belleville and water from one of the leachate ponds on the Belleville property leaked into a ditch owned by the City of Belleville. The city is trying to make Susglobal reimburse them for all the costs of cleaning up the leakage.

So now the company needs funds to cover whatever it costs to become environmentally compliant again and Marc needs to find a financial institution that will give them a new letter of credit for up to $470k before Belleville can start receiving waste again.

Then there's the charge of lease with the MECP guarantee that's tied to the PACE debt settled last year, which could have implications for Susglobal continuing to use the Belleville property or to continue using it as collateral, as they have done a few times for outstanding loans but that's beyond my level of financial knowledge.

[Horsin around]

It's in the annual report. I believe they now have zero operational facilities.

[Neo2020]

Where did you see the Info about being shut down by the government? I haven’t seen that

[Horsin around]

Of course it was. He's been all talk for years. Hasn't ever produced any results. His operations are shut down from the government.

[stoneroad]

I hope Marc’s idea of positive news after the 10Q was not simply the trademark. That’s not going to cut it.

[Horsin around]

This is a total disaster. Non stop shares being sold. Shut down by the government. Massive debts. No financing. High ceo salary. This just sucks in every way possible

[stoneroad]

Lovely, what a shock (not).

[infamous]

Yuuuk

[synaphai]

What is new but not in the 10Q is that the contractor for Hamilton, Gillam, filed a suit yesterday for nonpayment of $3.2 million. At this point the company needs around $50 million to settle all the debt and fund the company's plans for the next year.

[stoneroad]

Nothing really new, but pretty darn ugly.

[Stock Sumo]

10Q Filled https://www.otcmarkets.com/filing/html?id=17606902&guid=XWQ-knG_sr7fJth

[synaphai]

No chatter on Stocktwits or twitter so the rise likely isn't just from day traders finding the stock. Maybe somebody knows something or was at least convinced by Marc into thinking they know something. I bought a little under 3 cents after seeing the last pump so am happy with the increase but we'll see if it sticks.

[infamous]

what the f are you doing on the snrg then

[infamous]

reversal coming it looks like IMO

[synaphai]

It's been the same story for the past 3 years: waiting for Marc to raise money. The problem is that debt has been piling up during the 3 years he's failed to raise money. That's why the share price has fallen to where it is.

More debt means more money needs to be raised just to get out of debt before he can start building facilities, and this has caused the value of the company to decrease. For the stock to really turn around he needs money to cover debt plus money to build.

[infamous]

IMO at some point this will reverse. maybe soon?

[infamous]

yep pos all selling

[stoneroad]

Lots of selling this am. Well done Marc!

[synaphai]

It still needs to be accurate to not run afoul of the SEC. Probably just had to spend so much time on the 10K that the 10Q was put entirely on the backburner until the 10K was completed and it's not like Susglobal has manpower to spare.

[stoneroad]

Seriously, why the delay with the 10Q? It’s not like it’s audited.

[Neo2020]

Popped back to .08 yesterday for a second. It’s on the rise! It’s always darkest before the dawn! Let’s goooo!

[infamous]

dang! stock is .029 now? glad i got out at .07ish. i guess all the people IN THE KNOW were out in the .20s and higher.

[stoneroad]

When is the 10Q and what kind of good news could he have? Financing?

[Neo2020]

Of course gotta take it with a grain of salt at this point in this game but he responded to my email today which I all but called out what it looks like is happening and apparently some good news will be released after the 10Q. But……

[synaphai]

It obviously depends on what somebody would pay for the land but for the most recent Hamilton lot purchased last Nov minus interest that's accrued since November: by my calculation the company probably currently has around $145k in equity. As for the Hamilton land with the building and Belleville, it makes my head hurt to try to figure it out with all the mortgaging but I doubt it's anything, plus Belleville is laden with environmental remediation costs. The Belleville compost covers and buildings are given a net book value of about $1.9 million combined.

It's obviously so frustrating to see the large RNG offtake that should be able to be used as leverage but Marc wouldn't be the first to fail in that respect. Look at Gevo stock, it was $15 bucks at one point and is now at 70 cents because their CEO has not been able to raise the capex to build the facilities to satisfy his billions in sustainable aviation fuel offtake.

It's not over for Marc but the mortgage refinanced in Dec has a $4.2 million payment due in less than two weeks on top of everything else.

[stoneroad]

Any idea how much the land (given the zoning) might be worth less the mortgages?

[synaphai]

I know that he was not factual when he claimed in a publicity video interview posted on the company's Youtube channel in early fall 2021 that waste was at that time being accepted by Belleville from Montreal. I checked with the relevant department in Montreal, who let me know that they were not sending waste to Belleville. I asked Marc about it via email and, if memory serves, he recanted that claim in a later video.

I believe that the statement made in the May 2021 investors presentation that Susglobal products were at that time being sold in 5 big box type stores in Canada was likely untrue. I checked with most of those stores at the time and could find no record of Suglobal products being sold either in the stores or online. Also, that investors presentation claims that revenue for 2021 would be $18 million. Should he have known at the time that it would be nearly impossible to even get remotely close to that target....(revenue for the year was $754k).

If anybody wants to see that presentation, it's here: https://smallpdf.com/file#s=e67d628f-bf80-4c70-b532-1c52d7a2baab

There is also the question of lawsuits the company was a party to not being mentioned in quarterly or annual filings. Beginning in August 2022, lawsuits were filed by subcontractors that worked on Hamilton likely for nonpayment of services. I can't see the filing history for these lawsuits so maybe there's some wiggle room with the status of those suits over time but nothing was mentioned about these types of suits until the 10K that was filed last week.

But as for any legal action against him, the company doesn't have any cash or much in the way of assets given all the mortgages so at this point you can't get blood out of a stone. Maybe he'll miraculously find the $20 million needed to fulfill current contractual obligations, the company has not gone under yet, but it'll take something amazing to happen against long odds. I'd still like to see him succeed but debt has piled up for way too long.

[Horsin around]

How can marc just lie to investors over the past year. He said so many things would be completed that never occurred. Can legal action take place? Or is that impossible due to the companies debt.

[synaphai]

Yeah the company is being crushed by debt and the resultant lawsuits from non-payment of debt. With Marc not fighting the power company's suit earlier this year and the 10K saying that he has been "unable to retain counsel" in the recently filed $4.5 million suit by an uncompensated noteholder...any Canadian legal professionals out there available to work pro bono?

Plus Belleville has had two different environmental problems and is now shut down so that's going to require funds to remediate but it's not like Belleville was a cash cow anyway with a $2 million gross loss last year.

Marc did get mortgages extended but the bulk of them will come due again in the next 7 months.

The bottom line is that we knew he really needs money but he really, really needs money just to cover everything that's piled up, not including actually restarting Hamilton construction or even thinking about funds for RNG facilities.

[stoneroad]

10K is VERY ugly. Let’s see if Marc has any positive news to follow.

[stoneroad]

https://app.quotemedia.com/data/downloadFiling?webmasterId=102691&ref=318324148&type=PDF&symbol=SNRG&cdn=606f7fdfe91ed9d62df4a67555da5484&companyName=Susglobal+Energy+Corp&formType=10-K&formDescription=Annual+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2024-05-15

[3p1cdud3]

Where can I find it?

[Horsin around]

Thank goodness. Anything good?

[stoneroad]

10k has been filed.

[stoneroad]

Marc had also indicated to me that they’d make the deadline. Guess we’ll see.

[Horsin around]

I think tonight is it. Pink tomorrow if nothing

[stoneroad]

Sure would be nice to get the 10K this evening so as to not have to sweat it out for the next 24 hours.

[ElementalBard15]

Sorry about that. You're right. Not sure how I got under this account. Maybe too many accounts. I've been following on yahoo finance. Earlier this was my post below....which people clarified.
I hope previous poster is right. I just want to be realistic

So yahoo finance said there was an earnings call. I looked and haven't found one. So....the fact the 10k is late and no communication isn't good.

[stoneroad]

As it is yours.

[ElementalBard15]

If love to be optimistic and this is this guy's first post.

[stoneroad]

And what makes you say that?

[CometNavigator43]

A few days left until this stock takes off like a rocket !

[Neo2020]

Today he told me it will be filed before that deadline but we shall see soon enough.

[synaphai]

I believe Marc has until end of day Thursday to file and preserve OTCQB status but it may be end of day Wednesday. It's 45 days from April 1st.

If he doesn't meet that deadline, the stock should drop to the pink sheets, which won't be the end of the world but trading pink along with being late with the 10K, which may bar him from filing an S-3 for 12 months, could make raising money more difficult, as if it hasn't been difficult enough already. If he can sell green bonds that would bypass any of these issues because that would not rely on selling shares but I have no idea about the chances of actually selling bonds.

From what I understand, if he misses the deadline this week he would still have another 135 days to file before trading would be essentially halted for the stock.

[stoneroad]

Let’s hope we get it this week.

[Horsin around]

Man I thought we would get the filing tonight. Wtf is going on.

[Horsin around]

I don't understand why he would say it's imminent if he knows it's not. What does that accomplish?

I can't wrap my head around why it's so late. What possible reason would cause a delay this long?