The holding corporation S3 Investment Company, Inc. and its wholly owned Redwood Capital subsidiary that now trades in the U.S. as Energroup Holdings Corporation , assisting private Chinese companies in accessing the U.S. capital markets through reverse mergers into public companies, on October 15 has informed shareholders on the updated status of financial filings originally planned to be filed by S3 this week, and of the expected timeline for closing of Redwood Capital’s reverse merger transaction. After filing the documents which will include the annual reports with audited financials for the 2007 and 2008 fiscal years, the company will apply to be reinstated to the Over-the-Counter Bulletin Board market.
Chairman and CEO of S3 Investment Company, Jim Bickel, also commented on the status of Redwood Capital reverse merger transactions, saying that they are expecting for two of the transactions to close by the end of the calendar year.
Redwood Capital participated in a transaction involving BVI-controlled Dalian Chuming: Nevada-based Energroup Holdings had acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited, a British Virgin Islands corporation which is the whole owner of China-based Dalian Chuming. Redwood Capital was issued 428,095 shares of ENHD as the equity portion of its payment for advisory services provided for the transaction.
In the recent financial reports for Energroup Holdings Corporation, it is seen that through its direct and indirect subsidiaries (known as Chuming), supermarket and franchise stores increased sales 57.8% up for the first six months of 2008 versus prior year, and net income increased 70% to $9.9 million for the 6 months ended June 30, 2008.