Redwood Group International (RDWD)

[Myth]

Keep your eyes on ENHD red...on 12/31, the last day of the qtr it was trading @ 2.55....with no volume..dead..

http://ih.advfn.com/p.php?pid=historical&cb=1267627680&symbol=ENHD

Recently it reached 4.10, and now is at 3.65, volume is sporadic, but much better. This is all because of the S1A that was filed, and the peace treaty between the lead investors and management.

Recent Development

On December 30, 2009, we entered into a Settlement Agreement with the investors, pursuant to which among other things we have agreed to new deadlines for the appointment of a new Chief Financial Officer, the appointment of independent directors to serve on our board of directors, and the effectiveness of the Registration Statement, of which this prospectus forms a part. We refer to these requirements as the Public Company Requirements. The Settlement Agreement modifies and amends certain terms of the Securities Purchase Agreement, the Holdback Escrow Agreement, the Registration Rights Agreement and the Make Good Escrow Agreement, which provided that we comply with the Public Company Requirements. We have agreed with the investors to comply with all of the Public Company Requirements by March 31, 2010, except that we have the right to extend the deadline to have the Registration Statement declared effective until May 15, 2010, if the financial statements to be included in the Registration Statement are no longer current and the audited financial statements for the fiscal year ended December 31, 2009 must be included in the Registration Statement.

The release of the funds from the Holdback Escrow shall be as follows:

1) If we comply with all of the Public Company Requirements by March 31, 2010, all of the funds currently held in the Holdback Escrow will be released to us, and the liquidated damages in the amount of $1.7million for not having the Registration Statement timely declared effective will be waived.

2) In the event, as a result of the extension, the requirement to have the S-1 declared effective is the only Public Company Requirement not met by March 31, 2010, we will have the funds in escrow, less the $1.7 million in liquidated damages, released to us, and the $1.7 million shall remain in escrow and will be released to us if we meet the May 15, 2010 extension deadline. If we miss the extension deadline, then the $1.7 million will be distributed pro rata among the investors.

3) If we fail to satisfy any one of the Public Company Requirements by March 31, 2010, other than having the Registration Statement declared effective if the extension to May 15, 2010 applies, then the investors will have the funds in escrow, less then $1.7million in liquidated damages released to them, on a pro rata basis, and the $1.7million remaining shall remain in escrow and will be released to us if we meet the May 15, 2010 deadline. If we miss the extension deadline, then the $1.7 million will be distributed pro rata among the investors.

4) If we fail to comply with any two of the Public Company Requirements all of the funds in escrow will be released to the investors on a pro rata basis.

We have also agreed with the investors to modify the requirements for the release of the 2009 “make good” shares, such that if we timely comply with all of the Public Company Requirements and meet the 2009 after-tax net income and earnings per share targets the right of a majority in interest of the investors to countersign the escrow release notice with respect to the release of the 2009 “make good” shares shall be automatically waived and we shall have the right to deliver such escrow release notice to the Escrow Agent instructing the Escrow Agent to deliver the 2009 “make good” shares to our founder. Further, we agreed that if we do not meet any one of the Public Company Requirements and we do not meet the 2009 after-tax net income and earnings per share targets, that our right to countersign an escrow release notice with respect to the release of the 2009 “make good” shares shall be automatically waived and a majority in interest of the investors shall have the right to deliver such escrow release notice to the Escrow Agent instructing the Escrow Agent to deliver the 2009 Make Good Escrow Shares to the Investors.

http://www.sec.gov/Archives/edgar/data/766659/000114420410007442/v173280_s1a.htm

SIVC owns 327,278 shrs of ENHD