DAMASCUS, Md., Sept. 21, 2010 (GLOBE NEWSWIRE) -- Syndication Inc., (Pink Sheets:SYNJ), announced that the Board of Directors has narrowed the many options of qualified warehouse plant locations down to four. Each meets the OSHA and minimum 30ft height x 25,000 square foot project requirements and is priced at about $150,000. However, the Board is exhausting all efforts to negotiate the terms on one of the properties that is priced considerably higher but, offers unique leverage. It is a 7 acre property that has four independent 25,000 sq. ft. qualified warehouses on site. Of which two of the warehouses are currently leased for storage on a month to month bases by a regional sized food company. It is the intent of the Board to convert the existing agreement from month to month to a long term 5 year lease that is bankable and can be collateralized under traditional banking requisites. This property is listed at approximately $500K and would demand a substantial commitment of the Company's present available capital assets.
However, the positive income flow generated by the transaction would neutralize the cost of hundreds of thousands of dollars in loans for working capital. Discussions with a number of local banks have lead us to understand that the appraised value of the asset coupled with 5 years of guaranteed lease revenue and the fact that they would score the tenant as financially strong, would rate the property, for the purposes of loan consideration, in a category of B+ to A-. This property is the top choice of the Board. However, any of the remaining 3 alternatives will meet the requirements of the project and we are prepared to move forward but, not before exhausting the prospects of closing on our top pick. It's more complicated and may take more time but, in the name of corporate prudence, it must be done. Our decision will be based largely on the action of the leasing party and we cannot control the timing of their response. Please note, "I am willing to be patient but only to a certain extent. We are being pursued aggressively by many business citizens of South Carolina and opportunity is being dropped at our door step virtually every day. It's a great place to be and it's become blatantly clear that the more patient I become the more leverage I garnish. This community is desperate and willing to do just about anything to attract investors. In my opinion the delays of last year's developments have inadvertently put the Company in the best negotiating position of its project history," said the CEO of Syndication Inc.
The Board remains resolute to the execution of our business plan and the belief in our future. 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. "I am excited and proceeding with cautious but, specific intent," said the CEO of Syndication Inc. Over the next couple of weeks 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 is pending but, will be released as it develops.
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