RedHawk Holdings Corp (fka SNDD)

[BL28]

Stretching the facts...

RedHawk Land & Hospitality, LLC, a wholly-owned subsidiary of the Company, has tentatively agreed to acquire from Beechwood Properties, LLC ("Beechwood"), certain commercial real estate currently under long-term lease to the State of Louisiana.

IN REALITY...

RedHawk bought a 3 bedroom, 2 bath house from Beechwood. Yes, the house is being rented to a judge. Beechwood attempted to sell it for months in 2011 and had no luck. It remains to be seen if there are any profits being made on the property, as both the lease terms and the mortgage terms of the property haven't been revealed.


So - it's possible RedHawk is making money off it. It's also entirely possible that transferring this house from Beechwood to RedHawk was a way to get an underwater property off the hands of Beechwood and into the hands of a limited-liability holding company.

All depends on how you put the pieces together.