SOURCE: S3 Investment Company

S3 Investment Company

April 09, 2009 09:34 ET

S3 Investment Company Announces New Client for Redwood Capital Subsidiary

Engagement Involves Company Currently Listed in the U.S. Public Markets

DANVILLE, CA--(Marketwire - April 9, 2009) - S3 Investment Company, Inc. (PINKSHEETS: SIVC) today announced that its wholly owned Redwood Capital subsidiary, which provides Chinese clients with U.S. corporate finance and investment banking services, has signed a new client engagement. Like prior Redwood Capital assignments, the new client is based in China; however, this time the company is already listed in the U.S. public markets.

Redwood Capital has been retained to assist with the process of raising capital for the client, which does business in China construction materials and supply industry. Segments of China's construction industry, particularly in Tier 2 and Tier 3 cities, are projected to grow due to the continued rise in middle class incomes and the government's stimulus efforts, which have also focused on development of the country's infrastructure as well as residential building. Building materials form an integral part of the infrastructure and construction industries in China.

"A new client for Redwood Capital is always good news for S3, but signing a company that has already achieved a listing in the U.S. capital markets opens new avenues for our business," said S3 CEO Jim Bickel. "There are a number of China-based companies that previously listed in North America but have not been able to access capital to successfully implement their strategies as public companies. Redwood Capital and its affiliates are able to provide assistance in this area, as evidenced by the successful capital raises in recent reverse merger transactions involving our clients."

"We look forward to providing more information on the details of this Redwood Capital client and the company's efforts on its behalf," Mr. Bickel added.

Redwood Capital participated as the China merchant banking advisor in a recent transaction involving Boyuan Construction Group, Inc., which resulted in Boyuan Construction trading on the TSX Venture Exchange under the stock symbol BOY. Boyuan Construction is a leading builder of commercial, residential and municipal infrastructure projects in China's fast-growing regions of the Yangtze River Delta and the city of Sanya on Hainan Island. In consideration for its services, Redwood Capital received 330,219 Acquisition Common Shares.

About S3 Investment Company, Inc.

S3 Investment Company, Inc. (http://www.s3investments.com) and its wholly owned Redwood Capital subsidiary are focused on assisting private Chinese companies in accessing the North American capital markets by utilizing a network of investment banking relationships to achieve reverse merger transactions. For more information, please visit http://www.redwoodcapinc.com.

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 Information

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    For S3 Investment Company
    Gemini Financial Communications, Inc.
    A. Beyer
    (951) 677-8073
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