S3 Investment Company, Inc. Updates Status of Conditional Acquisition Agreement for Redwood Capital Client
January 11 2011 - 11:04AM
S3 Investment Company, Inc. (Pink Sheets:SIVC) today updated the
status of an acquisition transaction involving Mongolian Resource
Corporation (MRC) a client of the company's wholly owned Redwood
Capital subsidiary. Redwood Capital has been engaged as the Asian
merchant banking financial advisor for MRC.
Mongolian Resource Corporation has entered into a conditional
agreement to be acquired by Alamar Resources Limited, which is
traded on the Australian Stock Exchange. In addition to the
share exchange agreement executed by MRC and Alamar Resources,
Alamar has signed a Letter of Engagement (LOE) with Stifel Nicolaus
Weisel, the investment banking arm of Stifel Financial Corp., for a
planned A$10 million capital raise. As part of the LOE,
Stifel Nicolaus Weisel has been engaged for a period of 24 months
following the completion of the transaction to provide investment
banking services for Alamar Resources.
MRC is a diversified mining company engaged in the acquisition,
development and operation of resource properties in Mongolia,
particularly late stage or current producing mines. MRC's
objective is to build shareholder value by maximizing the potential
of its current properties and leveraging our financial strength and
experience to acquire new long-life, low-cost projects. The
company's current assets include gold, coal, tungsten, iron ore,
and lithium.
"This Redwood Capital client transaction will be significant in
a number of ways, not the least of which is the fact that Alamar is
listed on the Australian Stock Exchange, a new global market for
Redwood Capital clients," said S3 Chairman and CEO Jim
Bickel. "MRC is also important due to its current base of
operations in Mongolia, which Redwood sees as a growing market with
almost limitless possibilities, especially in the metals and mining
sector. We look forward to seeing this transaction close along
the announced timetable."
Mongolia is seen as a new frontier for investors, particularly
in the metals and mining sector, and Redwood Capital recently
opened a new office in Ulaanbaatar, the capital city.
Redwood Capital has been engaged as a financial advisor for its
client, which is based in Mongolia, where Redwood Capital recently
opened an office. Redwood Capital assists private Chinese
companies through the process of accessing capital markets through
Alternative Public Offerings (APO) transactions. The company
has participated in transactions for clients which are now listed
on exchanges including the U.S. Over-the-Counter Bulletin Board
(OTCBB) market and Canada's Toronto Stock Exchange (TSX).
As part of S3's previously announced re-branding under the
Redwood name, the company has moved its website to
www.redwoodgroupint.com. In the coming weeks, changes will be
made to the site to reflect the new name and additional subsidiary
operations. To sign up to receive information by email
directly from S3 Investment Company whenever new information is
disclosed by the company, please visit
http://www.redwoodgroupint.com/investors.
About S3 Investment Company, Inc.
S3 Investment Company, Inc. (http://www.redwoodgroupint.com )
and its Redwood Group International subsidiary are focused on
facilitating the success of its subsidiaries operating in the China
market, including Redwood Capital, Inc. Redwood Capital
assists private companies in Asia through the process of accessing
capital markets through Alternative Public Offerings (APO)
transactions. The company has participated in transactions for
clients which are now listed on exchanges including the U.S.
Over-the-Counter Bulletin Board (OTCBB) market and Canada's Toronto
Stock Exchange (TSX) and has a pending client transaction on the
Australian Stock Exchange. For more information, please visit
http://www.redwoodcapinc.com. Redwood Group International
Medical, Inc. assists companies seeking to import and distribute
Western medical technologies and products into the China
market.
Any statements contained herein related to future events are
forward-looking statements and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Readers are cautioned not to place undue reliance on
forward-looking statements. S3 Investment Company, Inc. undertakes
no obligation to update any such statements to reflect actual
events.
CONTACT: S3 Investment Company
Investor Relations
investors@redwoodgroupint.com