Replies to post #31833 on Sunergy, Inc. (fka SNEY)

[scubastevemd]

NOT WRONG. I said we need news now and not then because once they are out and if news hits at the same time the stock will have a problem moving because the shares will be out!

[JohnnyRoastbeef]

Holding Period. Before you may sell any restricted securities in the marketplace, you must hold them for a certain period of time. If the company that issued the securities is subject to the reporting requirements of the Securities Exchange Act of 1934, then you must hold the securities for at least six months. If the issuer of the securities is not subject to the reporting requirements, then you must hold the securities for at least one year. The relevant holding period begins when the securities were bought and fully paid for. The holding period only applies to restricted securities. Because securities acquired in the public market are not restricted, there is no holding period for an affiliate who purchases securities of the issuer in the marketplace. But the resale of an affiliate's shares is subject to the other conditions of the rule.

www.sec.gov/investor/pubs/rule144.htm

[10X]

2 different issues here.
The warrants can be excercised at any time, but the shares issued upon excercise will carry a restrictive 144 legend. In order for the legend to be removed and for the shares to be transferred to a broker to trade in the public market 2 things have to happen
1. the shares have to have been held for at least 6 months and
2. the company has to have been compliant with 34 ACT reporting requirements for at least 3 months.

So for the guys who got warrants in Janurary, if the company were compliant then the smart thing for them to do would be to excercise in July (6 months), and, if I were them, sell enough shares to cover the excercise price and pay taxes and let the rest ride. Since the company is not compliant then the smart thing to do is to wait until they have been compliant for at least 3 months and then excercise and do what I said above.
With respect to the shares that were sold in Janurary and April, the 6 month holding period still applies but they cannot be sold until that happens and the company has been compliant for 3 months.
In any event, as I have stated before, I don't think any of this really matters. Fully diluted these guys have about 2 billion shares but would also have lots of working capital upon exercise of warrants (at least 4 million). So I think its farily simple. .05 to .10 pps is realistic given that would give them a market cap of between 100 and 200 million. If they are generating good cash flow and have growth opportunities in Ghana with working capital, this I believe is a reasonable expectation.