Viking Energy Group Inc (VKIN)

[Potse]

SBAT...change in shell status.....

2.9M shares outstanding
870K market cap

On May 23, 2011, the Company commenced operations as an incubator of an Internet driven investment exchange with the purpose to become the global marketplace for investments. The Company is in the process of building a comprehensive global online community whereby investors, investees and practitioners meet. The Company intends to cater to various types of investors and investees and their advisers, such as bankers, investment banks, corporations, private equity firms, hedge funds, PIPE investors, family offices, and entrepreneurs. The Company believes it is filling a need for a mid-market online global market place allowing participants to identify opportunities world-wide on a cost efficient subscription basis. By providing a free listing service for investees and a basic service for investors for free, which can be upgraded to various levels, the Company believes it can attract a large amount of users and increase web traffic, which in turn will convert to additional paying subscribers and revenue for the Company.

By allowing investees to list its opportunities for free, to be provided only on a teaser level of disclosure to investors subscribing to the basic service, it is anticipated that professional investors and their constituent parties will increase their deal flow, thereby reducing the cost and complexity otherwise not easily revealed by current research methods. Matching is shown on each subscriber’s dashboard and takes place primarily around similar industry classifications. Full subscription allows investors access to a much more informative online level of disclosure designed to allowing the investors to make an informed decision and to contact investees.

Initially, I am not overly thrilled with the company's decision to build a business from scratch. Personally, I would have preferred that the SBAT shell be used in a full-fledged reverse merger (acquisition of an already established/existing business), as I believe that would probably provide an easier or perhaps more certain opportunity for significant upside for the retail investors in SBAT. But, on the other hand, if they can build a viable business and keep the share count relatively low during the development stage, there could be some decent upside. The "tradeable" float is pretty low at the moment.

Presumably a website and additional information will be coming. I'm not certain but my guess is that Tom Simeo (and Viking Investments) are looking at the business models and success of social networking, job networking and business networking sites (like LinkedIN) and will probably try to create something similiar but more focused on the investment "niche".

One thing that is encouraging about this particular attempt by management to implement a new business plan: SBAT purchased shares of one of Viking Investments' RM companies (CNWD) on a much more logical/realistic valuation basis. On the previous business plan attempt, I think SBAT was purchasing shares of a RM company at a valuation probably 10+x higher than what the shares were worth on the open market.

Although there doesn't appear to be any "official" business alliance agreement between SBAT and Viking Investments (like there was in the previous new business plan attempt), I get the impression from language in the 10Q that the two parties will probably make additional investments/exchanges in the future. As I noted on another board, Viking Investments appears to be preparing for a significant influx of business/investments regarding its operations in China (see link below). It looks like the shares that SBAT acquires from Viking (or perhaps its own investments) will be used to help pay for implementation of its new business.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=65031079