Replies to post #5933 on Redwood Group International (RDWD)

[The Rainmaker]

Here's some food for thought regarding SIVC's ability to raise money without diluting.

Here is a PR from FFGO....FFGO is a POS and I'm not comparing SIVC to FFGO. Just want to point out one thing that may give people confidence SIVC really can raise money without dumping stock. SIVC now has something of value on their books to pledge against financing.

Fortress Financial Group, Inc. - Loan Facility
Company Secures US$5 Million Long Term Loan Facility
Fortress Financial Group, Inc. (PINKSHEETS: FFGO) has entered into a Long Term Loan Agreement in the amount of US$5 million. This initial loan agreement is a "non recourse" loan secured against a small portion of the Company's restricted stockholding in Hunt Gold Corporation.

Now SIVC
February 14, 2008 - 10:00 AM EST
S3 Investment Company Announces Redwood Capital Subsidiary's Receipt of Equity Payment From Participation in Dalian Chuming Acquisition Transaction
S3 Investment Company, Inc. (PINKSHEETS: SIVC), a holding company with two subsidiaries doing business in the China market, today announced that its Redwood Capital subsidiary has received the equity portion of its payment for providing advisory services for the recently closed acquisition transaction involving Dalian Chuming, a pork processing company based in China.

Redwood Capital has been issued 428,095 shares of Energroup Holdings Corporation, a publicly traded Nevada corporation that acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited, a British Virgin Islands corporation ("PSI") and parent company of Dalian Chuming. Energroup Holdings Corporation is traded under the symbol ENHD.

As reported this week in a Form S-1 Registration Statement filing with the SEC, institutional and accredited investors participated in a $17.0 million private placement with Energroup Holdings Corporation, paying $4.40 per share. At the placement price, the value of Redwood Capital's equity position would exceed $1.8 million.

If SIVC puts up their ENHD shares as security against funding it will give them access to a higher quality of financing then someone with no collateral. They have a tangible, verifiable asset on their books now.

[scoobey-do]

I still maintain that the audit statement was an error on the part of SIVC. The only thing is, SIVC's books were so far out of whack with GAAP that when they had to reapply they found that they would have to clean up areas of their books that would be better left alone.

SIVC didn't want to clean up their books at the time and decided that they would be better off not reporting the goings on of the company. They would be able to do whatever they wanted outside the knowledge of the shareholders.

Now they want to become more respectable and want to be relist on the OTCBB. They hired a internal accountant in the past year and the accountant is probably in the process of cleaning up the books.

All IMO of course. Only time will tell. scoob