Sylios Corp. (fka UNGS)

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Sylios Corp. Analyst Report
A New Cannabis Business and a Merger in Retail (OTCBB: UNGS)
735 Arlington Ave. N
Suite 308
St. Petersburg, FL 33701
http://www.usnatgascorp.com

HIGHLIGHTS
Authorized Shares 2,000,000,000 a/o 3-31-13
Shares Outstanding 576,332,161 a/o 3-31-14
Float 233,459,081 a/o 3-24-14
Avg Vol (3 month) 34,587,429
52 Week Range .0004 - .03

THE COMPANY
Through its subsidiaries the company operates 115 natural gas wells, 33 oil wells, and maintains a leasehold base of approximately 17,000 acres in the Appalachian Basin. The Company's current business activities focus primarily on exploration and drilling.
Subsidiaries:
US Natural Gas Corp KY ("USNG KY")
USNG KY is a wholly owned subsidiary responsible for the Company's oil producing properties in Kentucky. Presently, USNG KY operates thirty oil wells of which 14 are in production in southern central Kentucky, and maintains a leasehold base of approximately 5700 acres. USNG KY will continue to rework and place acquired wells into production. USNG KY recently launched a new drilling program targeting the Knox formation on the Turner leasehold in Green County, Kentucky with a goal of drilling three to four wells prior to year's end.
US Natural Gas Corp WV ("USNG WV")
Formerly Wilon Resources, Inc., USNG WV is a wholly owned subsidiary which is responsible Company's natural gas development project in Wayne County, West Virginia. USNG WV operates 115 natural gas wells, 3 oil wells, and maintains a leasehold base of approximately 12,000 acres. The Company is placing the wells back into production on an individual basis after a series of tests and installation of completion components. At present, the Company has 30 wells in production and anticipates this number to increase to 60-65 by the end of August.
E 3 Petroleum Corp ("E 3")
E 3 is a wholly owned subsidiary which is the sole operating and bonding entity for the Company's wells in the states of West Virginia and Kentucky.
E 2 Investments, LLC ("E 2")
E 2 is a wholly owned subsidiary which focuses on acquiring assets valued or equities trading at inherently depressed levels. At present, E 2 owns the mineral rights on 180 acres of land in Wayne County, West Virginia, and a minority stake in a publicly traded specialty retailer catering to the hunting industry.
SLMI Options, LLC ("SLMI")
SLMI is a wholly owned subsidiary which focuses on the acquisition of corporate debt. SLMI was acquired by the Company in 2009 and currently holds in excess of $1.0 million in third party corporate debt.
The Greater Cannabis Company, LLC ("GCC")
GCC is a wholly owned subsidiary which focuses on the medical and recreational marijuana market. GCC will focus on the addition of new products through joint ventures and/or acquisitions which cater to this newly expanding field.
UNGS announced that it has entered into a Letter of Intent to acquire Signifi Solutions, Inc. Since the company started, 10 years ago, Signifi has designed automated retail solutions for a wide array of products including perishables requiring temperature control. Signifi has years of operational experience with scaled rollouts and currently has several marquee customers which include BMW, Mini Cooper, Videotron, and Rogers Wireless. The acquisition should be completed this summer. Signify is a private Canadian company and details of their financial condition are not available making it difficult to determine the impact of a merged enterprise.
On July 11, 2014 , the company announced via an Interim Financial Report that it hired an accounting firm to prepare audited financial statements for the fiscal years ending December 31st, 2011, 2012 and 2013.

RECENT NEWS
ST. PETERSBURG, FLA / ACCESSWIRE / April 30, 2014 - US Natural Gas Corp (OTC Pink: UNGS) is pleased to announce that it has entered into a Letter of Intent to acquire Signifi Solutions Inc.
Headquartered in Ontario, Canada, Signifi is a global leader in automated retail solutions. Signifi has been an innovator in the industry for over ten years. The Company projects revenues of $5 million USD for 2014, and is projecting future revenues of $50 million USD from leading online and brick and mortar retail customers. The Company designs, builds and implements state-of-the-art automated retail solutions, utilize cutting edge software and robotic technologies, for a wide range of clients including multiple Fortune 500 corporations. Management has also identified a significant demand for its products in the rapidly expanding medical marijuana industry and is already taking the necessary steps to develop those interests.
This transaction is expected to be completed within the next 90 days. It is expected to be immediately accretive to US Natural Gas Corp's cash generation and earnings per share within
the first 12 months after closing. Specific terms of the transaction will be disclosed at a later date, but Signifi will have majority control of UNGS at the time of closing.
"This is the right time for us to acquire a company of Signifi's reputation, experience, growth record and scale in North America," said Wayne Anderson, President, US Natural Gas Corp. "With the recent realignment of our operating subsidiaries, the addition of Signifi will complement our business model and move the Company towards profitability and increased shareholder value."
"We are excited to become part of US Natural Gas Corp," said Shamira Jaffer, President of Signifi. "This opportunity will allow us to leverage our collective knowledge and experience to build a stronger U.S. presence while augmenting our current retail channel strategies. Our new target markets will include emerging industries such as medical wellness and medical marijuana dispensing solutions where we see tremendous growth potential over the coming years.”

ST. PETERSBURG, FL / ACCESSWIRE / April 7, 2014 - US Natural Gas Corp (OTC Pink: UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to update shareholders on its current and future operations.
On April 2, 2014, the Company's Board of Directors voted to change the name of US Natural Gas Corp (the publicly traded entity) to Sylios. In addition, the Board of Directors voted to change the name of the Company's natural gas subsidiary, US Natural Gas Corp WV, to US Natural Gas Corp. The changes were approved by shareholders holding a majority of our outstanding voting capital stock on March 31, 2014. An amendment to the Company's Articles of Incorporation was filed with the Florida Department of State, Division of Corporations, on April 4, 2014. Once the date stamped amendment is received, the Company shall file the appropriate documents with Finra for the name change and requesting a new trading symbol.

ST. PETERSBURG, Fla. March 17, 2014 -- US Natural Gas Corp (OTC Pink:UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to inform shareholders that the Company's Board of Directors has elected to realign its hierarchy of operations and further expand operations with the formation of a new wholly owned subsidiary.
In an effort to more accurately reflect the Company's operations, the Board of Directors has approved several key changes to be implemented within the coming weeks. Included within these changes will be a name change to the parent Company to better reflect its role as a holding company. The Company's current subsidiaries will remain active with the possibility of name changes to one or more.
The Company has formed a wholly owned subsidiary whose operations will concentrate on the medical and recreational marijuana market in the southeast.

MANAGEMENT
Wayne Anderson:
President, Principal Financial Executive, Secretary
Wayne Anderson is acting President and Chairman of the Board of US Natural Gas Corp and has served in the capacity since the Company's inception. Prior to founding the Company, Mr. Anderson served as the Managing Member and co-founder of Around the Clock Trading and Capital Management, LLC, an investment management company and the General Partner of Around the Clock Partners, LP. Through Around the Clock Partners, LP, Mr. Anderson made significant key investments within the natural resources sector. Mr. Anderson completed his undergraduate education at the University of Georgia and received his Doctorate degree from Temple University.

Jim Anderson:
Vice President
Jim Anderson is the acting Vice President and serves as a Director. Mr. Anderson has been involved in commercial and residential real estate for more than 35 years. Mr. Anderson brings a diversified business background in mergers and acquisitions, site selection, project planning and business strategy. Prior to Mr. Anderson's commercial and residential real estate career, he worked at Ashland Oil for 12 years. While at Ashland Oil, Mr. Anderson was in charge of leaseholds, land acquisitions, and site selection. Mr. Anderson completed select undergraduate studies at Middle Georgia College.

Shannon Bell:
Executive Assistant
Shannon Bell has served as the executive assistant for the Company since December 2009. As the executive assistant, Ms. Bell provides general administrative support for the President and overall administrative management for the office. In 2008, Ms. Bell served as an assistant for a regional medical office. Immediately prior, she served as office management for a high end retailer in Orlando, Florida. Ms. Bell completed select undergraduate studies at Caldwell Community College in North Carolina.

CONCLUSION
The shift into a new business model can only mean good things foe UNGS. The company was not generating enough revenue from the oil & gas business and the revenue had been falling since 2010. Signifi is a private company with reported revenue of $5 million. UNGS has stated that Signifi will own a majority of the merged company. Investors aren’t aware of the finances of Signifi so it becomes difficult to ascertain the impact the merger will have on shares held by investors but considering the statements made by the company’s executives a joining seems like a win-win merger.
When the dust settles in the near future UNGS will be a company involved in the oilfield, natural gas, and cannabis and retail automation. That’s a lot of diversity and perhaps the company will spin off one of those sectors enhancing investor value in the process. Spinning off the oil & gas subsidiaries would make sense as there doesn’t seem to be any symbiosis with the newly announced businesses and revenues have been soft in that sector of the UNGS
I am long on UNGS because of the way the company is reinventing itself and I like the look of the future for these shares.

SOURCES:
USNG Quarterly Report Issued 5-14-14
www.yahoofinance.com (news feed)
www.usnaturalgascorp.com
UNGS Interim Financial Report Issued 7-11-14
Mark Roberts has been a long time trader on Wall Street and an executive at several companies in the private sector. Mr. Roberts brings his experience as a CEO, stock trader and private equity advisor to the Research Reports he writes.
This business analysis contains information and data about companies and Markets that can become outdated in the fast paced world of business. Please check the date this report was published to ensure the information within is still viable.
Disclosure: I have no positions in any stocks mentioned in this report. I wrote this report myself, it expresses my own opinions and is written in good faith. The compensation I receive is not related to the views and opinions expressed in this research report. I have no business relationship with any company whose stock is mentioned in the article. None of the information or opinions expressed constitutes a solicitation for the purchase or sale of any security. This report is the property of Mark Roberts and/or the publisher that paid for it and any reproduction in whole or in part is expressly prohibited without permission.



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