WASHINGTON, Jan. 31, 2011 (GLOBE NEWSWIRE) -- 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