Sunset Island Group Inc (SIGO)

[Alan Brochstein]

N0, SIGO DID NOT SELL SHARES AT $0.85

It should be clear now that the $340K the company announced that it raised by selling 400K shares (now 640K) was at $0.10 and the balance was the is other security. Here is what is important to remember:

THE COMPANY CAN STILL SELL 19.36MM SHARES AT $0.10

The way I believe it works:

1) Company borrows $300K from Joseph Wade
2) Company sells Joseph Wade 640K shares for $64K ($0.10 per share)
3) Joseph Wade sells these free-trading shares into the market for let's say $0.80. This is a profit (pre-tax) of $448K (after tax about $300K)
4) Joseph Wade takes Preferred B, giving him 15% of REVENUE (not profits)

Wash. Rinse. Repeat. This could go on for a long time! Wade ends up getting his cash back AND 15% of the top-line . Will we see a Series C next?

BOTTOM LINE - WADE AND CREW ARE SIPHONING OFF BIG CHUNK OF REVENUE