SOURCE: S3 Investment Company

October 20, 2008 09:39 ET

S3 Investment Company Announces Release of October 2008 Newsletter Reviewing Activities of Redwood Capital Subsidiary

DANVILLE, CA--(Marketwire - October 20, 2008) - S3 Investment Company, Inc. (PINKSHEETS: SIVC) and its wholly owned Redwood Capital subsidiary, which assists private Chinese companies in accessing the U.S. capital markets through reverse mergers into public companies, today released the October 2008 edition of its investor newsletter, which reviews the recently reported growth of Redwood Capital client Dalian Chuming, which now trades in the U.S. as Energroup Holdings Corporation under the symbol ENHD. Chuming is a premier processor and supplier of fresh and prepared pork products in Dalian, China.

A PDF version of S3's October newsletter can be viewed on the company's website at http://www.s3investments.com/media/news/.

Energroup Holdings Corporation recently reported that through its direct and indirect subsidiaries known as Chuming, supermarket and franchise stores drive sales 57.8% up for the first six months of 2008 versus prior year and that net income increased 70% to $9.9 million with EPS of $0.47 for the 6 months ended June 30, 2008. A press release with additional details of the financial report was issued by Energroup Holdings Corporation and the quarterly report was filed with the Securities and Exchange Commission.

Redwood Capital participated in the transaction involving Dalian Chuming, through which Energroup Holdings Corporation, a Nevada corporation, acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited ("PSI"), a British Virgin Islands corporation and parent company of PRC-based Dalian Chuming. For its participation in the transaction, Redwood Capital was issued 428,095 shares of Energroup Holdings Corporation. Institutional and accredited investors participated in a $17.0 million private placement with Energroup Holdings Corporation, paying $4.40 per share for their positions. At the placement price, the value of Redwood Capital's equity position would exceed $1.8 million.

In addition to the newsletter article reporting Dalian Chuming's financial performance, the newsletter also highlights Redwood Capital's scheduled appearance at an upcoming Global Chinese Financial Forum (GCFF) event, which will be held on October 30 through November 1, 2008 in Dalian, China. The GCFF - China Conference focuses primarily on the capital markets and wealth management, acting as a platform connecting international financial service providers to private companies in China looking to step into the international market.

Another article in the October newsletter reviews Chairman and Chief Executive Officer Jim Bickel's most recent trip to China to work with management of Redwood Capital on its pending reverse merger transactions. In addition to meetings related to existing Redwood Capital clients and pending reverse merger transactions, Mr. Bickel participated in meetings with additional prospective Redwood Capital clients which comprise the pipeline for future potential reverse merger transactions.

The newsletter also updates the expected schedule for the completion of the financial reports necessary to apply for reinstatement to the Over-the-Counter Bulletin Board (OTCBB) market. The company plans to include the annual reports with audited financials for the 2007 and 2008 fiscal years as part of a Form S-1 Registration Statement expected to be filed on or around October 15, 2008. After the Form S-1 Registration Statement is filed, the company expects to begin filing its periodic quarterly and year-end financial statement in the required timeframes. The next quarterly report, for the period ended September 30, 2008, will be filed on or around November 14, 2008.

"As we continue to work toward the closings of Redwood Capital's pending reverse merger transactions, we are also committed to completing all of the filings necessary to achieve fully reporting status," stated Mr. Bickel. "We hope to be able to provide additional information to shareholders in the very near future."

To sign up to receive information by email directly from S3 Investment Company when new press releases, investor newsletters, SEC filings or other information is disclosed, please visit http://www.s3investments.com/investors/.

About S3 Investment Company

S3 Investment Company, Inc. (http://www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships to achieve reverse merger transactions, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China.

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

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