Replies to post #70175 on Southridge Enterprises Inc (SRGE)

[tradingfunds]

SRGE~>Must Read Post~>Today's PR+$5MM+OTCBB

Great post and explanation with facts to back it up. BuyBio2 you really "NAILED" it on this post. The news today does make PERFECT sense with SRGE moving or uplisting at a rapid pace to the OTCBB and the fact they will need to show $5MM should they not already have it on the BOOKS ;-)

buybio2 Member Profile buybio2 Member Level

Wednesday, November 28, 2012 2:10:24 PM
Re: None
Post # of 70175
MAGNA NEWS - EXPEDITED UPLISTING AND $5MM POTENTIAL FINANCING

Magna will coordinate leading professional services and utilize established industry contacts to substantially reduce the timeline to complete the up-listing process. Magna has also has committed up to $5,000,000 in capital funding for the Company upon completion of the up-listing process.

Reading the press release and numbers involved, it is important to consider why the Company might need $5MM should it uplist to OTCBB.

The initial impression one forms from today's news is, "If SRGE is getting $500MM - $550MM for Cinco, why do they need to borrow $5MM?" This is a huge disconnect, yes.

To me, it looks like SRGE is planning to uplist prior to concluding the buyout/JV discussions, hence the expedited effort. As I have mentioned in the past, the financials must be cleaned up, specifically the assets pertaining to the old Ethanol business. What this entails is a write down of approximately $15MM in assets.

The impact of this write down is a direct charge in the same amount to shareholder equity (which is currently positive), creating negative equity. Please understand this point. Minimum shareholder equity requirement for OTCBB uplisting is $5 million. Given that the Company currently may/may not have enough to cover the required $5 million minimum, it is imperative to have a back-up plan for additional capital injection if needed.

It is not to say that the Company will use or need the $5 million from Magna in this effort to uplist. To me, it seems to be a contingency plan.

[I-Glow]

I see that you haven't read the post by nodummy about Magna - SRGE is in a very toxic situation. You need to read it before making any proclamations about how great this is for SRGE - it was a act of desperation.

Check it out: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=65086759

IG

[samsamsamiam]

It's obvious it is just a delay - move the carrot- tactic. There will be no half billion dollar buyout by a NYSE listed company and no distribution of over $100 Million dollars to shareholders.
It doesn't get more obvious than this.

This is a sick cruel game they are playing with shareholders.

I suggest you take a look at the links provided for the past history of Magna Group - it will give you a pretty good indication of where this stock is headed.

and that email from Magna - it does sound like they made no final commitment to SRGE. Huge RED FLAG - one of many they keep on coming.