I sent Kevin an email yesterday, asking him if their efforts to get funding are still ongoing. I also asked him how he thinks the current turmoil with the financial institutions will affect Reliant. He sent me the following reply:

Hi -----,
We are still pursuing the plan and loans with River Oaks. To date all is still positive and no lenders have pulled out. However, the markets exploding beyond what anyone expected certainly puts all future plans in new territory that we did not expect, so it is too early to tell the true impact or future ramifications.
We have to keep working at this, but also recognize that this is a new point and it will take some time to sort this out.
I will keep you posted.
Thanks
Kevin

I think that the financial institutions have been in serious trouble for quite some time. The true extent of the underlying problems are just now coming to light. The condition of the financial institutions was far worse than anyone could imagine. This is probably the reason why it has been so difficult for Reliant to secure funding. Hopefully when all this gets straightened out, it will be easier for Reliant to get their funding.

For sure everyone is getting tired of the delays, but I would think that the preparation of the PPM would be an entirely different story from the funding that is being pursued, since the total control of that preparation process is in the hands of Reliant and their attorneys. With the funding, Reliant is at the mercy of the lender. Not so with the PPM. That being the case, they should be able to produce the PPM within a reasonable amount of time, allowing for sufficient time to make sure it is correctly prepared (all the I's dotted and the T's crossed) prior to presentation.

I wanted to make sure that things were still going forward, so I sent Kevin an email asking about the progress of the funding in all three efforts. Here is his reply:


----

1) In regards to the funding things are still positive and we hope to have some news very soon, however we will have to be patient and wait until it is absolutely firm.
2) In regards to the PPM we are agonizing over it and are composing an acceptable structure, there is no sense releasing something that will not be subscribed, we are working closely with our legal team and will provide a release when completed, it may take as long as two or three weeks maybe more, the structure is fairly complex and we are performing necesary due diligence.
3) The other loan and funding prospects are proceeding in a positive manner and we are in touch with the principals on a daily basis. Once we have a concrete written proposal we will likely be able to release some of the details, depending on the text of the agreements. We expect a break in this area very soon however in this unstable economic climate it is very difficult to make predictions or even set hypothetical dates.
I trust the above has answered your query. However should you have any questions or concerns please do not hesitate to contact me.
Best Regards
Kevin

Whoops! I always have a tendency to misspell Reliant. I don't know why. It seems like I never catch it until after I've posted. Oh well, I guess there are worse things that could happen. Mabe nex tyme i gets it write.

Thank you for acknowledging the correctness of my tautology. I however must disagree with your assessment that the underlying truth is there. Some may have fears of these things happening, but I see no indications or evidence of this being part of Relient's current plan. My understanding is that they are currently engaged in efforts to secure funding, as indicated in the June 2, 2008 post on the Shareholder's Corner: http://www.reliantfsc.com/shareholders_corner.php.

Taking into consideration the current state of the financial markets, their efforts may take some time. I hope the things enumerated in my tautology of Small Cap's post never happen, but if they eventually do, it will only be after all possibilities to secure funding have been exhausted. Even at that point, we still have no idea if this will be the course of action that will be pursued.

You said that the following three events are going to occur (inevitable):

1. 1:10 reverse split.

2. New stock issuance.

3. Next real company to come in.

Do you have any facts to back up your statement? By facts I mean things like the source of this information and when these events are going to occur. If you can not provide this information, then the statement that I made (it's a good thing it has no basis in fact) is true.

That paints a pretty bleak picture. It's a good thing it has no basis in fact.

I was also concerned about how the PPM would effect the share structure, so I sent Kevin the following email:

I am wondering how the private placement is going to be structured. Steve said that the security for the placement is going to be the mortgage pools. I want to know if this placement is also going to involve the issuance of shares. If it will, how many additional shares will be issued?

Here is his reply:

Hello ----, the ppm will be structured with a secured mortgage pool and minimum ROI to be determined, we are considering pref shares at a certain strike price that can be redeemed rather than taking back the investment, but it will not involve the issuance of common shares. More to follow, let us hammer away at it, the idea is to start the company without diluting the share base.


Kevin

You are right Wode, that's old news.

I sent an email to Kevin, asking if there was anything new on the funding. He replied as follows:

Hi ----,


Been in constant contact with our lender and it's still proceeding.


Kevin

Most are holders here due to the tremendous lose that would be realized in selling. There are some that bought in resently as a speculative buy. The MMs will try to shake these shares loose (I think you know that). There has not been any real activity on this stock for a long time, as you well know. The MMs only make money when they are buying and selling. The price at which they do this does not matter. If they have to create the impression of a selloff in order to get movement, they will.

I will not sell for two reasons: One is that my lose would be too great. The other is that I believe there is still a real possibility of receiving the funding. Everyone can decide either to hold or sell based on their own reasons.

Nothing has changed from the last communication I received from Kevin on Thursday: http://investorshub.advfn.com/boards/read_msg.asp?message_id=29147642. There is no additional news, either good or bad.

The MMs shook the tree this morning and someone panicked and sold. MM manipulation at it finest.

I sent Kevin an email asking about the status of the funding, and about the efforts of David Miller. Here is his response:



Hello ----,


With respect to your inquiry,


We have received further information yesterday that gives us encouragement that this long wait may have a light at the end of the tunnel. Our sources tell us that others ahead of Reliant may have received some funds (we are trying to confirm this), further they have reported that David Miller is working hard and will not give up until Relient is fully funded, so he is not running and hiding.


Still cannot give you a firm date other than to let you know when it happens. If we receive any adverse news on the funding, we will immediately advise all.


Thanks
Kevin

I sent an email to Kevin, asking if there is any progress with the funding. He replied with the following email:


Hello ----,


We are following up with lender daily and have received new information on funding that leads us to believe it will occur in due course. But I cannot give you a definitive date yet, although we have been given estimates of the next 14 days. So the funding is still alive and not dead!


Hope to follow up with good news for Reliant funding soon. I will keep you advised.


Best Regards,
Kevin

I got the same email.

I read Steve's response and noted the part about the investors being negative because of the current condition of mortgage paper. I sent Kevin an email, asking if this will effect the funding. Kevin responded by saying that nothing has changed. He said the lender has indicated to us funding NLT 15 April and we have not received any news contrary at this time. He went on to say that the 15th is coming fast and we will keep all advised.

I am just patiently, optimistically, and quietly waiting.

I sent Kevin an email asking if we are making any progress. Here is his reply:

----,


All I can say is:


We have made positive progress and certain verifications are underway. Cannot guarantee a timeframe!


Kevin


Safe Harbor
Certain statements contained in this press release contain forward-looking statements
including without limitation, statements concerning our operations, economic
performance, and financial condition. These forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The words "estimate," "believe," "expect," and "anticipate" and other similar
expressions generally identify forward-looking statements, which speak only as of their
dates. Reliant has relied upon the representation of a third party for this funding
commitment and there can no assurance that the loan will funded as indicated and may
change in the future.
Investors are cautioned that all forward-looking statements, which are based largely on
our current expectations, involve risks and uncertainty. Actual results, events and
circumstances (including future performance, results and trends) could differ materially
from those set forth in such statements due to various factors, risks and uncertainties,
including without limitation, risks associated with technological change, competitive
factors and general economic conditions, changes in marketing and distribution strategies
by manufacturers, continued shortages of new platform systems, difficulty in integrating
and deriving synergies from acquisitions, potential undiscovered liabilities of companies
that we acquire, changes in our business or growth strategy, the emergence of new or
growing competitors, various other competitive and technological factors. There can be
no assurance that the results referred to in the forward-looking statements contained in
this release will occur. The Company has no duty and undertakes no obligation to update
any forward-looking information, whether as a result of new information, future
developments or otherwise.
Source: Reliant Financial Service Corporation

That sounds like quite a substantial interest in the company to me. Then add to that the fact that they mortgaged their properties for $1.5 million, and used that money for the operation of the business.

I am just in a waiting mode right now. I think that is all we can do at this point. I still have confidence that the funding will be secured.

It is a done deal. I am totally convinced that the deal is completed. It is just a matter of the lender following through with the details (getting their paperwork in order, sending the POF out, and then the actual funding). We just have to let this thing play out. Keep your eye on the Shareholder's Corner this week.

Riveroaks says that the deal is complete. If they are lying, then they are going to have some serious legal problems. If they are telling the truth, then it is as I said. They have nothing to gain by lying and everything to loose.

At the closing bell, I sent this email to Kevin:

Hi Kevin,

Steve said that the POF would be here today. Apparently that did not happen. Is there any way that we can get from Riveroaks, a realistic and honest appraisal of what is happening and what is going to happen? This cycle of promises and broken promises has got to come to an end. We don't need any more empty promises from Riveroaks, but we do need to have an ongoing realistic update of what is going on, be it good or bad.

We need some answers. I hope you have them.

Thanks,

----


I just received a reply from Kevin. Here it is:

----,


We have been advised by Riveroaks to expect the POF late today as of yesterday. Others close to the deal outside of Riveroaks have indicated they have heard that things are going well. Reliant has nothing to loose by holding still for a little longer and management will decide by end of next week as to whether we go nuclear should we not have a concrete funding date and POF from Riveroaks. But that is a decision Management will make based on the information available for which we will keep all posted.


Kevin

I could not agree more that it is time to deliver. It is past time, but the best thing we can do right now is just let this thing play out.

I think the POF will be significant news, whether it comes in a press release or is put on the Shareholder's Corner. After that happens, all we can do is wait for the rest. According to what mzpq posted, the funding will be received 10 - 12 business days after the issuance of the POF.

Even though we all want there to be a press release when the POF is received, such news must not meet the standards of a press release. Here is Kevins reply:

----,


When we get the POF we will indicate such on Shareholders Corner. When we have funds in the bank we will press release.


Thanks
Kevin

I hope it is going to be a press release, because I really think we need it to be.

Somewhere along the line I got the idea that the POF would only be put on the Shareholder's Corner, and that the first press release would only occur upon funding. It must have been from one of Kevin's emails or the Shareholder's Corner.

Was anything said on the Shareholder's Corner about a press release when the POF arrived?

Either way, a response from Kevin should clarify it. No response yet. Whenever I email Kevin in the evening, he usually responds the next day early in the morning before the opening bell.

I was in the process of preparing this email when you posted:

Hi Kevin,

I want to get something clear so any further confusion can be avoided. You have always told me that the POF (capability letter) will be put on the Shareholder's Corner when received, and that you will only do a press release upon the company receiving funds. A second press release would follow, outlining the company's business plan. I have posted this plan of action on the message board, and I believe it was on the Shareholder's Corner at one time.

In the post that mzpq put on the message board yesterday, Steve said that the capability letter will be put out in a press release. http://investorshub.advfn.com/boards/read_msg.asp?message_id=27360381
Have you and Steve decided to change the plan of action, and go with a press release for the POF also, or is this a misunderstanding?

-----

It has been sent. Whenever I receive a reply, I will post it.

I just looked up the euro to dollar ratio and recalculated that. It would cost you $152 for a fill. Now that is way too much.

So my fill would have cost you over $90. If it gets that high here, I may be looking at a scooter.

I guess your right Maz. Now days it takes more than $20 for a car. My gas needle was on 1/8 the other day. It cost me $60 to fill it up.

It looks like that MM just covered 11,000 of those shares he shorted this morning. $20 profit. Gas money.

More than likely A MM shorted those shares to you at the time you stated. He held that transaction until now for who knows why. I am sure it was for his own benefit.

If your trade was for 18,700 shares at .005, then they just put it up about 10 minutes ago.

I agree mzpq. Thanks for sharing the info from Steve. That's helpful to know.

I sent Kevin an email saying, now is not the time to leave us in the dark.

Here is his reply:

-----,


It is not our intention to leave you or other shareholders in the dark, thats not our style. But we will not feed others outside our family with information for purposes other than what we need to accomplish. We will continue to update you, but without using the private emails between the two company's. We will announce when we receive the POF and funding date it indicates or any other material information when it becomes known.


Kevin

My guess would be that the display of the communications had become quite embarrassing for Riveroaks because of the obvious appearance of failure on the part of Riveroaks to follow through with what they said. They were probably getting negative feedback about it. Like I said before, I think Riveroaks was the victim of unforeseen delays. Even with that in mind, the displayed communications still painted a very negative picture of Riveroak's capabilities. If I were them, I too would want these communications removed.

This statement would tell me that nothing has changed concerning the funding: "Relient appreciates the work being completed by Riveroaks and their dedication and commitment to completing the funding as per their commitment".

I think it's the Brits. Those banks in London must move in slow motion all the time.

JD will be happy about that.

Update on Shareholder's Corner:
http://www.reliantfsc.com/shareholders_corner.php

Has the CEO of your company been keeping the shareholders updated as to the progress of this funding? If so, what is the latest word there?

Nothing. I am hoping for an update on the Shareholder's Corner.

It's so obvious. Surely no one will fall for it.