Southridge Enterprises Inc. Sees Strong Upgrade, Ethanol Plant Acquisition, and Potential for High Growth

Strategic Insights -

Southridge Enterprises Inc., a renewable energy company focused on becoming the ethanol producer of choice in the southeastern region of the United States, has seen a significant upgrade in equity rating from TRI-State Capital (TSC). The company has also completed the acquisition of an industrial facility plant, which will be used to build out an ethanol plant strategically located near a rail line on 37 acres in Mississippi's lower portion of the Mid-West corn belt.

Key Takeaways:

  • Southridge Enterprises Inc. has received a strong upgrade in equity rating from TRI-State Capital (TSC), indicating potential for high growth.
  • The company has completed the acquisition of an industrial facility plant, which will be used for the build out of an ethanol plant in Mississippi.
  • The plant is strategically located near a rail line on 37 acres, providing inexpensive and abundant access to corn supply with direct source to market.
  • Management is preparing for strong revenue growth in 2007 due to location and rising demand of ethanol within the region.
  • The company has signed a letter of intent to acquire ethanol plant equipment from South Louisiana Ethanol, LLC, which is expected to be operational by June 15, 2007.
  • The acquisition is subject to certain conditions, including but not limited to completion of satisfactory due diligence by the Company, negotiation and completion of a definitive acquisition agreement, approval of the Company and South Louisiana Ethanol LLC boards of directors, and other customary conditions.
  • Bill Gates, Sir Richard Branson, and Wal-Mart have all shown interest in ethanol as a future fuel of choice, investing or planning to invest hundreds of millions of dollars in companies that produce or market ethanol.
  • Southridge Enterprises, Inc. is a renewable energy company with a mission to become the ethanol producer of choice in the southeastern region of the United States.

Statistics:

  • The ethanol plant will have a planned capacity of 60 million gallons per year.
  • The company expects to start the first phase of operations in 2007.
  • Southridge Enterprises stock had closed Thursday at $1.45 a share.
  • The acquisition of the ethanol plant equipment from South Louisiana Ethanol, LLC, is expected to close in 15 days, subject to certain conditions.
  • The company's wholly owned subsidiary, Southridge Environmental, Inc., has acquired the industrial facility plant for the build out of an ethanol plant.

Sources:

  • Market Wire via COMTEX, Nov 03, 2006
  • Wall Street Trading Alerts, http://www.wallstreettradingalerts.com/SORD110206.html