DAMASCUS, Md., Sept. 14, 2010 (GLOBE NEWSWIRE) -- Syndication Inc., (Pink Sheets:SYNJ), announced that the Board of Directors agreed to vote on the sale terms of approximately 20% of Sentinel Renewable Energy S.C., (SRE S.C.). SRE S.C., a subsidiary of Syndication Inc. is the Company's bio-diesel manufacturing project located in South Carolina. Until the Board votes to approve the sale, the company can not release the exact terms of the transaction but, the broad strokes of the agreement include an exchange of 18% to 30% interest in SRE S.C. for an estimated payment of approximately $1 million dollars, a contractual agreement granting the purchasers oversight of their $1 million investment, 2 (two), consulting arrangements, (one for market development and the other for plant engineering management), and a 10% common stock dividend of the purchasing company to be paid to the shareholders of Syndication Inc. The CEO of Syndication asked the BOD to approve an additional 2% to 5% common stock dividend of Syndication's stock to be paid in conjunction with the settlement of the % sale of SRE S.C. "For some time now we have been approached by a number of suitors that have wanted to invest in our SRE S.C. project. We now have an official offer from a public company for Board consideration. This occurrence coupled with recent changes within the internal make up of our company have compelled the Board to move forward and exploit these opportunities," said the CEO of Syndication Inc.
The Company stated further that the consulting arrangement is uniquely ingenious to SRE S.C. because, the CEO of the suitor Company, after working with relationships related to Cairo, Egypt through 2004, where he excelled in his career as a specialist in "International Corporate Development," was well established as a leader in plant engineering for both the U.S. Navy and NASA's energy plant operations. "Aside from the $1 million dollar capital investment, a fantastic and exciting ancillary byproduct of the union is that SRE S.C. will inherent the management oversight and expertise required to build and operate our bio-diesel plant in South Carolina," said the CEO of Syndication Inc.
For its shareholders, the Company further noted that, "the distribution of a 3rd party dividend on a specifically designated asset of a Public Company is a uniquely gymnastic legal maneuver. After consultations with the transfer agents of each company, I will then make a recommendation to the Board on a practical execution of a dividend distribution strategy. I expect to recommend a dividend declaration date within the next 2 weeks. This is both a difficult and unique act. I also recognize that the dividend policy for a Company at this development stage is problematic to market makers holding short positions in our stock. I feel sure that this dividend issuance will cause real attention demands but, should that be my concern? I will not deny dividends to our shareholders because, the ability of market makers trading our stock for the purpose of 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 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 are cash rich and making 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 the originally anticipated. Over the next couple of days the Company expects to release details on the warehouse purchase, legal issues related to the $5 million dollar loan escrow, both dividends and the identity and final terms on the Company purchasing the stake of SRE S.C. 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 888-422-5515 Box 503 Damascus, MD 20872