Syndication Inc. Sells 20% Interest in Sentinel Renewable Energy S.C., the Company's Bio-Diesel Manufacturing Subsidiary, Receiv
31 Janvier 2011 - 6:01AM
Syndication Inc., (Pink Sheets:SYNJ), announced that on January
4th, 2011 the CEO on behalf of the Board of Directors executed a
Stock Purchase Agreement, (SPA), to sell 20% of Sentinel Renewable
Energy Inc., the Company's Bio-Diesel Manufacturing Subsidiary in
South Carolina, to Better Environment Concepts Inc., a Delaware
Corporation, (BECI), trading OTC.BB, over the counter on the Pink
Sheets, under the symbol, (Pink Sheets:BEEN). In exchange for the
20% sale BECI provided, among other concessions, a $1,000,000
conditional draw down debenture investment and 10% of BECI's Common
Stock. Additional terms of the investment include a conversion
feature allowing BECI to convert their debenture from 7% to 11 % of
Syndication's Restricted Common Stock. The debenture will bear
an interest rate floating between Prime + 1% and Prime + 3%. Both
the conversion and interest rate will adjust based on a schedule
related to the categorization and risk of the use of proceeds. For
example, assets that can be collateralized, (plant, equipment,
land), will bear a lower rate of interest and conversion ratio.
Whereas, higher risk draws approved for the purpose of working
capital and pay roll will fall into the higher rates of interest
and conversion ratios. In conjunction with the $1 million
debenture, BECI was also granted an oversight and disclosure
agreement affording them strict rights and controls over the use of
proceeds.
Additional Board resolutions charged the CEO with the
responsibility of picking a Dividend Declaration Date for the
Company's next dividend and to propose a dividend schedule for the
next year. The dividend declaration schedule should be based on a
quarterly payout and include both the Company's (Syndication Inc.),
common stock and the dividend payout of the Company's position in
BECI common stock. The Board further requested the CEO to modify
the Dividend Policy to provide the Company's shareholders with an
affordable service that would enable them to have the restrictive
legends on their dividend shares lifted. The Board suggested that
the service should include the legal opinion, reissuance of their
non-restricted certificate and return postage.
The CEO wished to note for its shareholders that, "The
distribution of a 3rd party dividend on a specifically designated
asset of a Public Company is a uniquely gymnastic legal
maneuver. After consultation with our transfer agent, I
believe that I will be able to make a recommendation to the Board
on a practical execution of a dividend distribution strategy within
the next week. This is both a difficult and unique act. I also
recognize that our dividend policy is problematic to market makers
holding short positions in our stock and I feel sure that this
dividend issuance will cause real attention demands. However, I
will not deny dividends to our shareholders because, the ability of
market makers trading our stock for the purpose of their own self
profit, becomes complicated," said the CEO, of Syndication
Inc.
The Board remains resolute to the execution of our business plan
and the belief in our future. We believe that the dividends play an
important role in the long term development of our stock valuation.
In our opinion, they will become valuable both monetarily and as a
recognized function of our Company culture. The pursuit of the
alternative energy market is still in its embryonic stage and South
Carolina is one of its frontiers. The State is poor and starving
for corporate capital investment. We have cash and have made
accommodations to accept an additional million dollar investment.
South Carolina is aggressively courting Syndication/SRE S.C. as a
player in their business community. We are using their economic
dearth as leverage to convert our business plan from chalk board to
practical application. An interesting revelation fostered by the
task is that it can be done much cheaper than originally
anticipated and the opportunity for profits is far greater than
originally forecasted. Over the next couple of weeks the Company
expects to release details on the Lake City S.C. warehouse purchase
and the status of the required roof repairs, legal issues related
to the $5 million loan escrow and both dividends. News pending.
This press release may contain forward-looking statements
covered within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among other things, plans and timing for the introduction or
enhancement of our services and products, statements about future
market conditions, supply and demand conditions, and other
expectations, intentions and plans contained in this press release
that are not historical fact and involve risks and uncertainties.
Our expectations regarding future revenues depend upon our ability
to develop and supply products, which we may not produce today and
that meet defined specifications. When used in this press release,
the words "plan," "expect," "believe," and similar expressions
generally identify forward-looking statements. These statements
reflect our current expectations. They are subject to a number of
risks and uncertainties, including, but not limited to, changes in
technology and changes in pervasive markets.
CONTACT: Syndication Inc.
Brian Sorrentino
Phone # 888-422-5515
For all mail correspondence:
Box 503, Damascus, MD 20872
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