Replies to post #69014 on Sunergy, Inc. (fka SNEY)

[havocjohn]

I am hopeful that is not the case as well; but to deny the possibility would be negligent.

This is after all still a penny stock, and a penny stock that despite finally overcoming the biggest obstical in it's path has seen a pps decline of (currently) aprox 18% since reaching that milestone.

But yes, Q2 is due in 8 days, so we will see.

[pooter03]

I'm sorry, I don't understand why you guys are saying that...

They address this specifically in the latest Q

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.

It seems to me, that they are saying that once the CE is removed, they can raise money by selling warrants and/or private placements. That means selling shares. Am I misinterpreting what is being said here?

From the wiki article on private placements:
http://en.wikipedia.org/wiki/Private_placement

Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.[1] "Private placement" usually refers to non-public offering of shares in a public company (since, of course, any offering of shares in a private company is and can only be a private offering).
PIPE (private investment in public equity) deals are one type of private placement.
In the United States, although these placements are subject to the Securities Act of 1933, the securities offered do not have to be registered with the Securities and Exchange Commission if the issuance of the securities conforms to an exemption from registrations as set forth in the Securities Act of 1933 and SEC rules promulgated thereunder. Most private placements are offered under the Rules known as Regulation D.[2]
Private placements may typically consist of offers of common stock or preferred stock or other forms of membership interests, warrants or promissory notes (including convertible promissory notes), bonds, and purchasers are often institutional investors such as banks, insurance companies or pension funds.