S3 INVT CO INC (U-SIVC) - News Release S3 Investment Company Updates Status of Financial Filings and Redwood Capital Reverse Merger Clients
2008-10-15 12:48 ET - News Release
DANVILLE, CA -- (MARKET WIRE) -- 10/15/08
S3 Investment Company, Inc. (PINKSHEETS: SIVC) and its wholly owned Redwood Capital subsidiary, which assists private Chinese companies in accessing the U.S. capital markets through reverse mergers into public companies, today updated shareholders on the status of financial filings originally scheduled to be filed by S3 this week, as well as the expected timeline for closing of Redwood Capital's pending reverse merger transactions.
The filings, which will include the annual reports with audited financials for the 2007 and 2008 fiscal years as part of a Form S-1 Registration Statement, are expected to pave the way for an application for the company to be reinstated to the Over-the-Counter Bulletin Board (OTCBB) market. After the Form S-1 Registration Statement is filed, the company would then file its periodic quarterly and year-end financial statement in the required timeframes. The next quarterly report due, for the period ended September 30, 2008, would be scheduled to be filed on or around November 14, 2008.
"While both our internal staff and our contracted independent auditors have completed virtually all of the work required to complete the financial reports, there are still a few remaining auditing issues that require attention," commented S3 Chairman and Chief Executive Officer Jim Bickel. "We are committed to completing the financials so that the Form S-1 Registration Statement can be filed as soon as possible, and we expect to have that accomplished by the end of October."
Mr. Bickel also commented on the status of pending Redwood Capital reverse merger transactions.
"Our focus has been primarily on the business of Redwood Capital and making certain that the current clients can successfully achieve listings in Western financial markets," he stated. "We feel very strongly that these are quality clients whose transactions will successfully close, but given the major upheaval in U.S. and world financial markets, there has been a delay for these clients. We are now looking for two of the transactions to close by the end of the calendar year.
"We believe that our shareholders understand the importance of our focus on successful closings for Redwood Capital clients, since that is where the value for S3 stockholders is ultimately created. We will take the opportunity to update the closing schedule wherever possible as these transactions develop further," Mr. Bickel added.
Redwood Capital participated in a transaction involving Dalian Chuming, a premier processor and supplier of fresh and prepared pork products in Dalian, China. Energroup Holdings Corporation, a Nevada corporation, acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited ("PSI"), a British Virgin Islands corporation and parent company of PRC-based Dalian Chuming.
Redwood Capital was issued 428,095 shares of ENHD as the equity portion of its payment for advisory services provided for the transaction. Institutional and accredited investors participated in a $17.0 million private placement with Energroup Holdings Corporation, paying $4.40 per share for their positions. At the placement price, the value of Redwood Capital's equity position would exceed $1.8 million.
In the most recent financial results for Energroup Holdings Corporation, it reported that through its direct and indirect subsidiaries known as Chuming, supermarket and franchise stores drive sales 57.8% up for the first six months of 2008 versus prior year and that net income increased 70% to $9.9 million with EPS of $0.47 for the 6 months ended June 30, 2008. Additional details of the financial report can be found in a press release issued by Energroup Holdings Corporation on September 3, 2008 and in the quarterly report filed with the Securities and Exchange Commission on September 2, 2008.
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About S3 Investment Company
S3 Investment Company, Inc. (http://www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships to achieve reverse merger transactions, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.
Contact: For S3 Investment Company Gemini Financial Communications, Inc. A. Beyer (951) 677-8073 Email Contact
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