DAMASCUS, Md., Aug. 4, 2010 (GLOBE NEWSWIRE) -- Syndication Inc., (Pink Sheets:SYNJ), announced that the Board of Directors authorized the CEO to move forward with the negotiations on the terms of a sale of 20% of Sentinel Renewable Energies S.C., (SRE S.C.). SRE S.C., a subsidiary of Syndication Inc., is the Company's bio-diesel manufacturing project located in South Carolina. The company can not release the exact terms of the potential sale at this time, but broad strokes of the agreement include an estimated cash payment of approximately $1 million dollars to be paid to SRE S.C. and a 5% stock dividend of the purchasing company to be paid to the shareholders of Syndication Inc. The CEO of Syndication asked the BOD to approve an additional 2% to 5% common stock dividend of Syndication's stock to be paid in conjunction with the settlement of the 20% sale of SRE S.C. "For some time now we have been approached by a number of suitors that have wanted to invest in our SRE S.C. project. Recent events within the internal make up of our company have opened the doors to move forward with these opportunities," said the CEO of Syndication Inc.
The Company reports further that the Board's of Syndication Inc. and Sentinel Renewable Energies S.C. Inc., (SRE S.C.), by unanimous vote rejected the proposed employment terms offered by McCutcheon Marshall Jr., President and Chairman of the Board of SRE S.C. Key demands of Mr. Marshall's employment proposal included a commitment for a 1 year contract with a salary totaling $220,000 which included a $100,000 cash signing bonus. Further conditions of the proposal demanded that SRE S.C. pay invoices from non-affiliated companies in excess of $35,000. The Board wishes to note that his terms were non-negotiable. Mr. Marshall Jr. has been the point man on the development of our bio-diesel manufacturing facility for SRE S.C. and his office has been principally responsible for the overall development activities of the project. They included the time lines of financing, development strategies of key contracts and the introduction of the Company to Mr. Peter Katzburg who under his watch ultimately became the CFO for the project. Mr. Marshall Jr., originally a 51% shareholder of SRE S.C., was reduced late in the year of 2009 to a 20% shareholder for reasons related to continued delays in the procurement of a $3.5 Million Dollar USDA government backed loan.
The need to move the project forward forced the company to seek alternative sources of financing and fostered Mr. Marshall's introduction of Peter Katzburg as CFO for the project. It's important to note that this loan was conditioned on a number of criteria, including that the Company be minority owned and that Mr. Marshall be willing to collateralize his personal assets. These two conditions, specifically the agreement of Mr. Marshall to go at risk for $3.5 million dollars among other issues, were the basis under which the original terms of Mr. Marshall's employment contract and 51% ownership in SRE S.C. were structured. When the company decided to seek financing terms that did not require Mr. Marshall to be at risk, it was agreed to by all parties to modify the terms of Mr. Marshall's arrangement. It was the concern of the Board that control of the company should not be vested in an individual that shares no financial risk or stake in the success of the project.
The Board also rejected the Marshall Employment proposal on the basis of salary. Originally, and to this date, all Board members agreed that there would be no salary packages for any Board members until we had an up and operating plant that was producing both revenue and income. Mr. Marshall has demanded a 1 year $220,000 dollar salary package and stated clearly that his focus would be on many other projects other then SRE S.C. in the US and around the world. The Board wishes Mr. Marshall well and good luck on all his endeavors and we are sure our joint efforts will bring us together on other projects in the future. However, at this time, our concerns are not vested in projects all over the world; our concerns are vested in the SRE S.C. project and in the best interest of the Syndication shareholders. We would only grant such a generous salary package based on performance and the assurance that our needs were a 100% priority.
The Board wishes to indicate that we are aggressively moving forward on all fronts with SRE S.C. project. We would also like to indicate that there is news pending on the sale of the 20% stake of SRE S.C. and the new site location for the plant.
This press release may contain forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products, which we may not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets.