Redwood Group International (RDWD)

[MinnieM]

I believe they are telling the truth. Primarily, since they followed through with the S1 filing at considerable expense. That filing is the only thing they had complete control of. Closing the reverse merger deals was dependent on financing coming through from someone else. It's kind of like buying a house. The deal isn't closed until the mortgage is given and funded.

In looking at the pr's they put out in October of 2008 they still expected the deals to close which would lead them to believe they weren't being seriously effected by the world situation. Once the deals were delayed due to lack of funding is when they must have fully realized how they had been impacted. I'll post the links and excerpts at the end with the most recent ones first.

The S1 filing had been done in good faith. In doing the S1A in response to SEC questions they left a table out, which was a costly mistake since they would have to do another amendment thus delaying the entire process further. On top of that, the SEC usually takes quite awhile to do their part. In an attempt to be fiscally responsible under the current financial climate I can see them wanting to hold off on the ensuing expenses of uplisting for now. At the time they filed the S1 they still thought they had multiple closings coming. I'm glad they intend to stay transparent. Their current status on the pinks is a huge improvement from the stopsign days.

http://www.pinksheets.com/pink/quote/quote.jsp?symbol=sivc

Many companies and individuals had changes in financial plans over the past few months due to the economic situation. This shouldn't be surprising to you. What is important to all of us now is that the upcoming deal goes through. If they don't get a deal within the coming months I will be worried.

Another thing, I'm sure many bought due to the dividend story. And, these investors are probably very unhappy now and may be the ones that have been slowly selling off. I never did feel it could be done anywhere in the near future. My purchase was based on the basic business plan of facilitating Chinese companies to reverse merge into US shells.

I'm out the door now and on pda. I'll be able to read posts periodically, but don't expect any major/if any responses from me until late tonight or late tomorrow.

Following are pr's I mentioned, most recent first:

2.2.09
http://www.s3investments.com/upload/SIVC_PR_2_2_09_ChinaConditions_final.pdf

***“Most of our deals at Redwood were delayed as a result of the market conditions, but the
companies themselves continue to prosper, and we have one project up for exchange approval within the next several weeks. We will provide details of the deal following approval, but we’re extremely pleased with our progress.”***

10.22.08
http://www.s3investments.com/upload/SIVC_PR_10_22_08_ClosingProcess_final.pdf

***today announced that a Redwood Capital reverse merger client is currently in the
closing process and the transaction is expected to close in the near future as previously
announced by the company. The company recently announced that it expected two current Redwood Capital clients to participate in successful reverse merger transactions and enter the U.S. public markets before the end of the 2008 calendar year. “Our focus at this time is to bring the first of our pending Redwood Capital transactions to a close,” stated S3 Chairman and Chief Executive Officer Jim Bickel. “Closing two transactions before the end of the calendar year, given the current condition of the global financial markets, would be quite an achievement, but we believe that it may be possible.”***

10.1.08
http://www.s3investments.com/upload/SIVC_PR_10_1_08_Filing%20Sched.pdf

***“While the recent financial turmoil in the U.S. markets has likely impacted the expected
timelines for the closing of Redwood Capital’s pending reverse merger transactions, delaying them to some degree, we do not expect it to significantly alter our expected closings in the fourth quarter of the 2008 calendar year. However, it is possible that the third anticipated closing will not occur until the first calendar quarter of 2009,” Mr. Bickel added.***