Replies to post #68121 on Sunergy, Inc. (fka SNEY)

[mikeymgd]

There is no guarantee that any of these warrants will be exercised in the future, but we have received exercise notices for over 49,500,000 in the last 18 months.

Total Warrants outstanding at December 31, 2011 592,319,951 100,000,000 0.00375

Plus: Warrants Issued 4,464,283 - 0.0057
Less: Warrants Exercised - -
Less: Warrants Expired - -
Total Warrants outstanding at March 31, 2012 596,784,234 100,000,000 0.0050

Less than 9% of the warrants outstanding have an exercise notice over the last 18 months. That is a long time for only around 3m in warrants to actually exercise.

I would not expect a big change in this. Odds are warrant holders will want to wait till right before the expiration. This reduces risks.

Total operating expenses for the three months ended March 31, 2012, increased by approximately 27% as compared to the comparative period in 2011 primarily as a result of an increase in administrative expense. Exploration and development cost are expected to go up substantially over the next year as we ramp up pilot and small scale production operations. With over 40 KM of river on our concession, future exploration designed to develop resources and reserves will be undertaken limited only by our future financial capabilities.

Our ability to raise capital since we received the Caveat Emptor status on December 13, 2010 has been restricted. While we have been successful in raising enough capital to buy and pay for the dredge equipment and the 2011 exploration operations and to pay for audit and accounting fees to file our delinquent financial statements which are now nearly complete, we have not had the ability to raise any significant additional capital to advance our exploration and mining operations.

We expect to have the Caveat Emptor status removed as soon as this Quarterly report is filed. Upon removal of the Caveat Emptor status, it is anticipated that the increased liquidity potential for our investors will have a positive impact on our ability to raise additional capital from private placements and future warrant exercises, however, there can be no guarantee that this will be so as we currently do not have any outstanding firm commitments to purchase our equity and equity linked instruments.

If the warrants were extended and I believe they were, than that gives them till January of 2013. The big question is SNEY going to pack up shop and end operations or are they going to move forward. To move forward will require large sums of money and Private Placements are the only logical answer.

I firmly believe SNEY's OS is set to balloon up over the next 90 days.