Beacon Equity Research reports on the OTC and OTCBB Trade Leaders: International Imaging Systems, Inc. (OTCBB: IIMG), Rotoblock (OTCBB: ROTB), AmeriResource Technologies, Inc. (OTCBB: AMRE), Saratoga Resources, Inc. (OTCBB: SROE) and NaturalNano, Inc. (OTCBB: NNAN) for October 26, 2007.
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International Imaging Systems, Inc. (OTCBB: IIMG)
Up 122.22% on Thursday
Detailed quote: http://www.beaconequityresearch.com/IIMG
October 25, 2007 - International Imaging Systems Completes Share Exchange to Acquire PRC Bio-Diesel and Oil Company
International Imaging Systems, Inc. (the "Company") (OTC Bulletin Board: IIMG.OB) today announced that it has completed a share exchange under which it acquired 100% of the outstanding capital stock of Baorun China Group Limited ("Baorun China"), a Hong Kong company. Baorun China's wholly-owned subsidiary, Redsky Industrial (Xi'an ) Co., Ltd. ("Redsky China"), a P.R.C. company, operates its business in China through Xi'an Baorun Industrial Development Co., Ltd. ("Xi'an Baorun"). Xi'an Baorun, a P.R.C. company located in Xi'an, Shaanxi Province in China, specializes in the development, exploration, production and distribution of bio-diesel and wholesale and processing of heavy oil and finished oil products in China. Under the terms of the share exchange, in exchange for all of their shares of Baorun China, the Company issued the shareholders of Baorun China approximately 94% of the Company's common stock. In connection with the transaction, one of the directors and all of the officers of the Company prior to the share exchange resigned; Mr. Gao Xincheng was appointed as a director, as Chairman and Chief Executive Officer of the Company, Ms. Li Gaihong was appointed as Chief Financial Officer of the Company and Mr. Chen Jun was appointed as Chief Operating Officer of the Company. Ms. Li will join as a member of the board of directors at a later date, immediately after the resignation of Mr. John Vogel as a member of the board of directors.
Concurrent with the share exchange, the Company completed a private equity financing of $10 million with 1 accredited investor. Pursuant to the financing, the Company issued 1,000,000 shares of its Series A Convertible Preferred Stock, initially convertible into 4,545,455 shares of the Company's common stock, subject to adjustment and warrants to purchase up to an aggregate of 5,681,819 shares of Company common stock. The proceeds from the financing will be used for working capital and general corporate purposes.
The Company will file a Current Report on Form 8-K with the Securities and Exchange Commission within the required time period, which Report will disclose detailed information about the Company and its subsidiaries, including financial statements for the fiscal years ended December 31, 2004, 2005 and 2006 and the six months ended June 30, 2006 and 2007, and further details regarding the transactions disclosed above.
The securities issued in connection with the transactions have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements. The Company has agreed to file a registration statement within 45 days of the closing of the transaction, covering the resale of 1,500,000 shares of common stock issued to one of the stockholders of Baorun China, and 1,123,769 shares of common stock that were issued to stockholders of the Company prior to the share exchange. The Company also agreed to file a registration statement at a later date covering the resale of the shares of common stock underlying the Series A Convertible Preferred Stock; the warrants issued to the investor in the financing have demand registration rights.
Rotoblock (OTCBB: ROTB)
Up 71.88% on Thursday
Detailed quote: http://www.beaconequityresearch.com/ROTB
October 25, 2007 - Engine Developer Rotoblock Interviewing for CEO
Rotoblock (OTCBB:ROTB), a developer of advanced engine and drive train design, announced today it has been holding interviews for the position of Chief Executive Officer and expects to announce an appointment in the coming weeks.
Officials with Rotoblock have been developing plans to commercialize the Company's patented Oscillating Piston Engine (OPE) as well as other small engine technologies. Last year the Company expanded its mission to capitalize on opportunities emerging around the world today in advanced drive train and small engine development. The key, they say, is management.
"This is an important move for Rotoblock," said Tony Collins, Vice President of Corporate Development and Technology for Rotoblock. "In this economic climate, Rotoblock has a clear opportunity in small engine development but what is needed most is progressive management. Rotoblock needs a dynamic individual with strong industry and international contacts who can devote the time required to work on the commercialization of the OPE as well as develop new opportunities."
Collins noted that the USA produces approximately 35,000,000 conventional small engines annually that are sold and used in the US alone. These numbers do not include engines used as power sources in automobiles, aircraft, construction equipment, recreational vehicles, and stationary applications as well as small engines outside the US.
AmeriResource Technologies, Inc. (OTCBB: AMRE)
Up 40.00% on Thursday
Detailed quote: http://beaconequityresearch.com/AMRE
October 25, 2007 - AmeriResource Subsidiary RoboServer Completes Development of Its New "Assisted Server"
AmeriResource Technologies, Inc. (OTCBB: AMRE) announced that its subsidiary, RoboServer Systems Corp., (PINKSHEETS: RBSY) developer of the revolutionary Self-Serve System that enables quick-service restaurant customers to process their own orders on a touch-screen kiosk has completed development of its new CT-MY1 Assisted Server unit, and is in the process of beginning their marketing campaign.
Delmar Janovec, CEO of AmeriResource, commented, "The units are manufactured by TeamSable and built in Taiwan, are a self-service ordering and payment system that features dual screens and can be accessed by both customers and employees. The Assisted Server utilizes software which allows customers to place and pay for their orders using the touch-screen interface, and permits employee oversight and assistance, if needed. The units sit on the countertops in place of the traditional POS."
"The CT-MY1 is designed to replace standard POS terminals/cash registers at the counter, and allows a single employee to monitor several ordering queues simultaneously. It functions as a self-service station and can be used as a regular POS if the customers do not want to place their own orders. The "Assisted Server" is a step in moving toward total Self Service or to replace orders using the conventional POS function. In a busy environment, one employee can assist and monitor 4 units while customers do their own ordering, thus reducing employee counts, improving customer satisfaction and order accuracy," added Janovec.
Saratoga Resources, Inc. (OTCBB: SROE)
Up 35.14% on Thursday
Detailed quote: http://www.beaconequityresearch.com/SROE
October 25, 2007 - Saratoga Resources Announces Agreement on Second Gulf of Mexico Acquisition
Saratoga Resources, Inc. (OTCBB:SROE) today announced that it has signed a Purchase and Sale Agreement to acquire The Harvest Group, LLC.
This agreement follows on the heels of the recently announced agreement to acquire Harvest Oil & Gas, LLC in a separate transaction. The Harvest Group has existing proved reserves, as reflected in an engineering report prepared by Collarini Associates as of September 1, 2007, of 18.3 bcfe (billion cubic feet equivalent) with 53% gas versus oil and PV10 value of $72 million. Harvest also has additional possible reserves of 11.2 bcfe.
Under the terms of the Purchase and Sale Agreement, Saratoga will pay a purchase price for The Harvest Group of $29,000,000, subject to certain possible adjustments. The purchase price will be paid approximately $22,000,000 in cash and the balance in the form of Subordinated Promissory Notes. Upon closing, which is expected to occur before year end, Harvest Oil & Gas, LLC and The Harvest Group, LLC will both become wholly-owned subsidiaries of Saratoga.
Thomas Cooke, Chairman and CEO of Saratoga, stated, "With this agreement to acquire The Harvest Group, and our earlier agreement to acquire Harvest Oil & Gas, Saratoga is positioned to bring under its umbrella a portfolio of oil and gas properties with combined proved reserves of 77 bcfe with an estimated PV10 value of $327 million. Total combined reserve estimates are 216 bcfe, including probable reserves of 74 bcfe and possible reserves of 65 bcfe. On completion of these acquisitions, we intend to continue to operate The Harvest Group and Harvest Oil & Gas out of Covington, Louisiana under the leadership of Barry Salsbury and to retain the technical and operational staffs responsible for the operations of both companies. We believe that the combined Harvest team, who, in addition to their efforts to develop Harvest Oil & Gas and The Harvest Group, have extensive industry experience with Chevron and Shell among others, will be a valuable asset to Saratoga as we seek to continue to expand our holdings in Southern Louisiana and the Gulf of Mexico."
NaturalNano, Inc. (OTCBB: NNAN)
Up 22.73% on Thursday
Detailed quote: http://www.beaconequityresearch.com/NNAN
October 25, 2007 - NaturalNano Introduces Next Generation Additive, Pleximer-N(TM)
NaturalNano, Inc. (OTCBB: NNAN) (FWB: N3N) (http://www.naturalnano.com/), a developer of advanced nanomaterials and additive technologies, today announced that Pleximer-N(TM), a new nylon-based additive product, has completed final manufacturing-scale validation and is available for purchase. Pleximer-N, the first in a suite of Pleximer products, is an innovative nanomaterial that when added to a polymer increases the strength, durability and flexibility of nylon and other polymer-based products.
Pleximer-N, the newest entrant in the $40 billion polymer composite industry, has been developed for a wide range of nylon and polymer-based products in a variety of markets. A turn-key additive, Pleximer-N is the first step in NaturalNano's strategic plan to enter all levels of an industry's supply chain by creating stronger, lighter and less expensive materials. With applications in a diverse range of both consumer and industrial markets, Pleximer-N has commercial potential for such things as increasing the durability of a football helmet, enhancing the aesthetics of fabrics or creating more flexible body panels in cars to reduce vehicle damage and provide increased levels of driver safety.
"The wide range of uses for Pleximer-N makes it a truly groundbreaking technology, one whose numerous applications we are just beginning to capitalize," said Cathy Fleischer, Ph.D., President and Chief Technical Officer of NaturalNano. "By incorporating halloysite in polymer-based products, we not only have the ability to increase a product's durability, strength and flexibility, but we also believe this material could be used in applications for surface treatments that require the highest level of surface quality, the A-1 industry standard, equal to the smooth finish on a car. This eliminates the need for additional coating and therefore would provide cost savings for the manufacturers."
Pleximer-N has passed rigorous, full-scale manufacturing testing by outside third parties for several industry applications. NaturalNano said it has manufactured a baseline inventory of Pleximer-N and has secured both internal and external production resources to meet expected demand for the additive.
NaturalNano noted that through their innovative manufacturing processes and patented technologies, Pelximer-N can be tailored to customers' specific need. By developing Pleximer-N with customized levels of HNT, manufacturers will have the freedom to explore the potential applications of Pleximer-N across numerous products.
Fleischer concluded: "By offering Pleximer-N to the marketplace, we have the ability to explore new applications with potential customers to produce industrial and consumer products with improved quality and strength at lower production costs."
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