DANVILLE, Calif., Sept. 15, 2010 (GLOBE NEWSWIRE) -- S3 Investment Company, Inc. (Pink Sheets:SIVC) today announced that its Board of Directors has approved a plan to repurchase up to 500,000,000 shares of its common stock in the open market. The company is undertaking the buyback plan as a result of its belief that its common stock is undervalued at its current trading price.
"S3 has a strong business operating in China and expanding into other areas of Asia, and we believe that the company's current value and long-term potential is not reflected in its current common stock trading price," said S3 Investment Company Chairman and CEO Jim Bickel. "The repurchase plan is expected to address the value issue, as well as reflecting the confidence that management has in the company and its future prospects."
"S3's wholly owned Redwood Capital subsidiary assists private Chinese companies in accessing the North American capital markets by achieving reverse merger and financing transactions. Redwood Capital has closed multiple reverse merger and financing transactions, for which it has been compensated in the common stock of its client companies; has several current clients in China and Mongolia; and is expanding its operations with additional client signings and other diversification into related business channels.
"Redwood Capital recently opened an office in Ulaanbaatar, Mongolia, which is expected to allow the company to work more closely with clients that operate in the Mongolia market as well as to explore additional emerging opportunities in the country. Additional Asia office locations are also under consideration. The outlook for Redwood Capital has never been better, so management felt that this is the time to implement a buyback program," added Mr. Bickel.
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About S3 Investment Company, Inc.
S3 Investment Company, Inc. (http://www.s3investments.com) and its Redwood Group International subsidiary are focused on facilitating the success of two subsidiaries operating in the China market. Redwood Capital, Inc. assists 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. Redwood Medical, Inc. assists companies seeking to import and distribute Western medical technologies and products into the China market.
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.