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Sloth97

04/11/06 6:36 PM

#641 RE: dave5197 #640

Dave, I'm not 100% sure but Jim said that the shares would become unrestricted in a couple of months for Dalian. They're restricted for 1 year from the time of the reverse. He said that the shares' value is in the upper six figures so obviously that figure fluctuates with the shareprice. The equity (shares) in these reverse mergers (RTOs) will be consistently valued in the upper six figures at the time of the deal.
They will be able to sell those shares immediately as far as I can tell when they become unrestricted but much bigger money could be realized if the company is uplisted to another exchange. This is called a secondary listing and is similar to an IPO listing. One of the great things that the withdrawal from a BDC does is that it allows S3I, investment banks and investment relation companies to promote the stock. I doubt they are promoting FSIN right now since we just did the proxy but I would imagine that it will be promoted soon. Jim said that S3I receives consulting fees from these reversed Chinese companies. These fees are split with the banking and PR people.
We are just beginning the process of reversing these Chinese companies. Eventually, shares will become unrestricted on a consistent basis throughout the year from the previous year's deals and provide an excellent additional source of revenue. It will be a revenue generating machine in a year or two.

This is all my opinion of course.

Hope this helps,

Sloth

scoobey-do

04/12/06 8:24 AM

#643 RE: dave5197 #640

Dave, I am curious as to why the Dalian shares had to be held in escrow until after the BDC status of S3 was gone, if they did indeed need to wait. Won't Dalian be issuing the shares to Redwood rather than S3? The unelection of S3 should not affect Redwood's legal status, IMO Can you think of any reason why Dalian would need to wait?