Hartcourt Companies (fka HRCT)

[Investorman]

SRUN is just a VEHICLE for ET to go public as opposed to file for a listing (save time and money)

This allows ET to:
1. Establish a market value/market cap
2. Allows ET to finance aqusitions/growth through equity financing and/or debt financing

Effect on HRCT...
1. Values HRCT equity interest in ET (HRCT's ET shares X market price) ... and therefore the intrinsic value of HRCT as an investment
2. Takes the strain off HRCT of ET acquisitions and cash flow needs...
3. If/when the market value of HRCT interest/shares in ET exceeds HRCT's purchase price/cost (4.1 million) then the intangible portion for ET on HRCT balance sheet becomes a tangible asset (investment)... improving fundamentals
4. Allows HRCT to dividend and/or sell ET shares (to raise cash) as needed in the future...
5. Events will eventually force the shorts to cover...