Replies to post #149664 on Green Energy Enterprises Inc. (GYOG)

[Pro Trader]

Very informative and unbiase, best post yet. Great job on your knowledge in this matter.

[Buddhasib]

B*A*N*K*E*R or anyone capable of a response to this? It could be worse than simply delays if not.

[cosmoworld7]

Dean is walking a tightrope right now by putting out such info if he cannot deliver. QASP could fall fast:

[masscommuter]

To answer one small point:

6. What ever happened to the $10MM line of credit?

The Newby funding is in 2 parts:
$10MM, first
$100MM, second
The $10MM loan effectively makes the total deal like a zero down payment mortgage,
esp.: it supplies the $5MM pre-paid interest.

For practical purposes, the 2 are talked about as 1 loan, $110MM.

[LCLiving]

You and everyone else will get their answers within 72 hours. I think you are way off base with your assumptions of this deal. Good luck getting those fills.

[Infinitygold]

SBLC is not as weak as you think:

A guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are proof of a buyer's credit quality and repayment abilities. The bank issuing the SLOC will perform brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then send notification to the bank of the party requesting the letter of credit (typically a seller or creditor).

Perhaps it means nothing to some irresponsible people who are in middle of all this mess that Banks have created in US.

[BENZ]

Thanks for the input sir.

[Pennydog]

great post. Put in the Top.

[investbernie]

Anvil,

Quite a few assumptions from my point of view, but best of luck to you, and like anything in life this will play out in due time.

Best Regards, Bernie

[WillyburgD]

A couple of comments:

4 - the loan might be syndicated on the back end w/ a lead lender (very typical). We don't know that it is not.

5 - I don't believe it is a typical lender or group of lenders; I'm guessing the money behind this is a sovereign wealth fund or similar entities.

6 - it is included in the $110M figure; go back and read, it is $10M and $100M.

7 - Who said that he doesn't have acquisition docs signed? And while certain structures require s/h approval to CLOSE, you generally do not need them to sign up a purchase agreement. And I don't think he is purchasing any public companies, so no surprise we haven't seen any public announcements.

8 - I am sure assumed indebtedness is either part of the purchase price of these deals or that portions of the acquisition proceeds will pay off those debts at closing. Who has assumed otherwise?

9 - Take a look at the HSR thresholds. We don't trigger them.

[Verity]

Anvil you're wrong according to my DD.
As I've stated many many times before, and still stand by:
This Deal IS REAL!

IMO, 72 hours brings us to a power house PR on or about Monday, hopefully pre-market.

Hang on, and I sincerely hope you are loaded.
I certainly am, and still buying!

[samplescave]

Anvil, WOW! What a GREAT POST!!! I agree on ALL POINTS!

Wasn't there a $15,000,000.00 dollar deal in the works as well some time back?

What ever happened to THAT?

Why did the $350 Million Dollar deal get trashed? I forget.

Any hoo...

Great Post~

[Caddy Man]

Can someone here respond to point 3 of Anvil's post.


3. If the deal was so good, the first lower rated Trust Company, which is essentially guaranteeing payment, would have lent the money instead of issuing its L/C to another Bank that is AAA rated. BTW, I don't know of a bank, in the US, that is triple AAA rated. Not JP Morgan, Citi, BofA, Wells Fargo etc. GE Capital may be still AAA rated.

[Infinitygold]

3. If the deal was so good, the first lower rated Trust Company, which is essentially guaranteeing payment, would have lent the money instead of issuing its L/C to another Bank that is AAA rated. BTW, I don't know of a bank, in the US, that is triple AAA rated. Not JP Morgan, Citi, BofA, Wells Fargo etc. GE Capital may be still AAA rated.

You are completely wrong on this, Newby never mentioned about AAA rated Bank:

The CEO of Quasar Aerospace Industries, Inc. (PINKSHEETS: QASP), Dean Bradley, announces that Newby and Associates has confirmed the successful closings of both the $10mm and $100mm (AAA) rated pieces of collateral from the US based Trust Company.
www.marketwire.com/press-release/Quasar-Aerospace-Announces-Funding-Progress-and-Conference-Call-1274207.htm

Now AAA collateral and AAA rated Bank are two different things right!!!

[Adjustedtosteep]

How about a couple of points from a former rocket scientist?

As a former rocket scientist(Porgie and I visited kennedy space center one afternoon) I can assure you that all of the launch preperations have been made. This has been fully fueled, and the countdown is getting short. For those without rocket science knowledge, that means someone lit the fuse....RUN RUN. This baby is about to blow.

[Verity]

From Shannon Newby to Anvil, etal: WITH LOVE

Verity, Can you post Newby's response to your buddy Anvil it seemed to piss him off and he doesn't have an ihub account. I showed him the link below.
This came directly from Shannon: Ty

----- Forwarded Message ----
From: Shannon Newby <[e-mail]>
To: [e-mail]
Sent: Sat, June 26, 2010 11:35:10 AM
Subject: Fwd: this is what is killing the stock fyi!
"ATTENTION:
To all so called conventional bankers especially (IHUB =Anvil), you are welcome to study my financing structure for the QASP deal for free.

The first investment grade private bank that is securing the AAA Trust company is totally secured by the net equity valuation of the assets being purchased by QASP. These assets are well in excess of $165mm and more importantly Newby & Associates, Inc. warrant execution price is substantially lower than the post financing/acquisition valuation yet much higher then current market valuation. The worst-case scenario for QASP's inability to raise enough capital in a secondary offering by maturity of the loan, will result in heavy dilution from the exercised warrants. Which by the way is enough to cover 100% of principal and interest on the loan.

Unlike most conventional lenders, I believe in the GREATER RISK versus REWARD ratio. Most Fortune 500 companies would never agree to such a substantial dilution to raise capital unless they have no other alternative. But, since this is not a Fortune 500 company, I will assume this structure is acceptable.

Keep in mind that the net equity valuation post financing/acquisition is more than double the loan amount.

Now if we take into account next years EPS for this newly consolidated business, I am betting that QASP stock can be sold at a multiple of those earnings which is a significant premium to today's share price.

This structure only works for companies who can acquire enough net equity in their acquisition targets to cover the dilution caused by the warrants being executed in the future to repay the loan in the event of a loan repayment deficiency by the borrower. If QASP's net equity post financing/acquisition was less than double the loan's principal and interest coverage, I would not be able to fund.

My structure is solely relying on my ability to dilute the net equity at a much higher stock valuation versus selling the newly acquired assets in a fire sale, even with my first position lien.
I have more than enough leverage capability to exercise the warrants and exit the loan position.

As far as the $10mm line, I decided to close both loans simultaneously due to the time is of essence put on the company.

This has been most interesting and I look forward to further educating the conventional and soon to be out work bankers.

Remember the name NEWBY & ASSOCIATES, INC. I have a feeling the WORLD is going to take notice after QASP.
Best Regards,
Shannon Newby
President
Newby & Associates, Inc.”

From: Verity [mail to: [e-mail]]
Sent: Thursday, June 24, 2010 2:10 PM
To: Bert Watson Jr
Subject: what do you think of this one ?????????
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51668898

[Bullstocks]

I think Shannon's reply to you was EXCELLENT. I hope it satisfied you. If not...oh well.

[beach_trades]

What do you doubters not Understand!?

Shannon Has Lien on every asset, every single one

The assets are valued way more than the loan

As an occasional doubter of quasar I asked Shannon, what if Quasar business model does not pan out, they go bankrupt in years etc

He said he can easily sell the assets in the "open market" one by one and well cover the cost of a loan

A Win Win for him, either way he is covered

Even if quasar fails in future he is covered by lien on every asset

SO obviousely the assets are real (and large) and way more in value than loan

Just Math

Best
CJ