Overview

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice in the southeastern region of the United States. The Company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes.

Southridge Ethanol Inc. is currently developing two Ethanol facilities with up to 60 million gallons of annual production capacity to address America's growing renewable and high-octane fuel requirements. Ethanol reduces dependence on foreign energy sources in an environmentally responsible manner.

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Investment Highlights

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Profile

A significant convergence of factors is driving dramatic growth in the renewable energy market, where global revenues are expected to rise four-fold from $40 billion in 2005 to $167 billion by 2015. High crude oil and gasoline prices, a finite supply of fossil fuels, concerns over greenhouse gas emissions, instability in the Middle East, desire for energy independence, regulatory mandates and bi-partisan political support for clean energy are sparking major demand for cleaner, domestically produced, renewable fuels. This convergence is revving the market for ethanol, the clean-burning, high-octane vehicle fuel and fuel additive produced primarily from corn.

Southridge Enterprises, Inc. is a renewable energy company focused on the production and sale of ethanol and ethanol co-products. Southridge plans to have its first ethanol plant fully operational and producing by June 15, 2007. The company has executed an option to purchase an ethanol plant and related equipment for its newly acquired industrial plant facility in Mississippi, where it expects to establish production of 60 million gallons of ethanol per year. Building a new plant with this capacity would take more than 18 months and cost tens of millions of dollars. By assembling a turn-key plant on a production-ready facility with excellent transportation and supply logistics Southridge will be able to save millions in construction costs and quickly ramp production.

Southridge is working to become the ethanol producer of choice in the southern US, carving out a significant share of this burgeoning industry. The global market for biofuels including ethanol and biodiesel grew more than 15% in 2005, reaching $15.7 billion (Clean-Energy Trends 2006, CleanEdge). Ethanol is widely used today as a fuel additive to reduce emissions and improve combustibility. All cars built since the 1970s are fully compatible with up to 10% ethanol in the mixture, called E10. Americans burned approximately 140 billion gallons of gasoline in 2005. Last summer’s Energy Policy Act requires gasoline producers to nearly double the use of renewable fuels—chiefly ethanol—by 2012. Mandated use will rise to 7.5 billion gallons by 2012, from 4 billion gallons in 2006.

Dedicated to meeting this rising demand and bolstered by a motivated management team with proven energy industry experience, ample funding, leading edge production facilities, and a clear strategy for growth and expansion, Southridge Enterprises is primed for major revenue generation and increased value for shareholders.

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Products and Services

Ethanol
The company's ethanol will be produced by fermenting a corn/water mash. The ethanol is separated, distilled, dehydrated, and blended with gasoline as a denaturant. All of the ethanol produced by Southridge will be sold as a fuel additive to improve the air quality characteristics of gasoline. As an alternative fuel or a fuel additive, ethanol has many advantages. It is made from renewable resources; it reduces air pollution; it provides an outlet for American farmers to sell their crops; and, in the company's case, even byproducts of the ethanol production process are turned into useful, saleable products.

Dried Distillers Grains
Distillers Grain is an important co-product of drymill ethanol production. The drymill ethanol production process uses only the starch portion of the corn, which is about 70% of the kernel. All the remaining nutrients – protein, fat, minerals, and vitamins – are concentrated into distillers grain, a valuable feed for livestock. A bushel of corn weighs 56 pounds and will produce at least 2.8 gallons of ethanol and 17 pounds of distillers grain.

CO2
Carbon dioxide is another product of the fermentation process that turns starch or cellulose into ethanol. Most ethanol producers simply vent their CO2 into the air, but Southridge Ethanol has chosen instead to capture the CO2 from their production process and sell it for use in the food and beverage industry. This is better for the environment and is another example of Southridge Ethanol's commitment to avoiding waste.

 

 

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Rising Market Demand for Ethanol

According to Clean Edge research, biofuels (global manufacturing and wholesale pricing of ethanol and biodiesel) will grow from $15.7 billion in 2005 to $52.5 billion by 2015.
 

Ethanol fuel is clean-burning, biodegradable and completely renewable. 10% ethanol-enriched fuel (E10) reduces carbon monoxide better than any other gasoline, by as much as 30%. This year the US ethanol industry is expected to grow to provide more than 5 billion gallons of clean burning, renewable fuel to the US supply.

In the US, clean energy has become a politically unifying issue with wide support from those of every political stripe, from traditional liberals to current and former military brass. This bipartisanship has been particularly evident at the state level, where nearly twenty states now have renewable portfolio standards (RPS) that mandate a percentage (often up to 20-25%) of electricity coming from clean energy. States like California, Hawaii, New York, and Pennsylvania are embarking on aggressive clean energy programs.

The trend is expected to continue as states view clean energy as an opportunity to address air pollution, public health problems, greenhouse gases, and grid congestion and a way for states to become known as centers for clean technology development, with all the new jobs and businesses that can result.

All cars built since the 1970s are fully compatible with up to 10% ethanol in the mixture. Every major automaker in the world approves the use of E10 Unleaded in their vehicles

Ethanol is mixed with unleaded gasoline to boost its octane rating and reduce emissions. The most common blends are E10 (10% ethanol/90% gasoline) approved for any make or model sold in the US, or E85 (85% ethanol/15% gasoline), used in specially made flexible fuel vehicles. These vehicles are truly “flexible” in that their owners have a choice whether to use E85, any blend of ethanol up to that 85% level, or straight unleaded gasoline.

There are approximately 5 million vehicles in the US that can run on E85, which is the cleanest-burning, renewable fuel available today. Currently it has a limited distribution but is often 20 cents cheaper than regular gasoline.

By the end of this year GM, Ford and DaimlerChrysler AG will have 6 million flex fuel vehicles on the road. These vehicles are capable of running on gasoline or 85% ethanol, 15%gasoline fuel.
 

 

 

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Recent News and Press Releases

Southridge Enterprises to Be Featured in SmartMoney Magazine (Nov 8, 2006)

Southridge Enterprises Signs Letter of Intent to Acquire Ethanol Plant in Louisiana (Oct 31, 2006)

ROBERT HAMLIN NAMED TO SOUTHRIDGE BOARD (Oct 25, 2006)

Southridge Enterprises Retains Investor Relations Firm (Oct 19, 2006)

Southridge Enterprises Selects Stockwire to Expand Investor Community Exposure (Oct 17, 2006)

Southridge Enterprises Approved for DTC Eligibility (Oct 13, 2006)

Southridge Enterprises Retains Agri-Systems as Engineering Consulting Firm (Oct 11, 2006)

Southridge Enterprises to Acquire Ethanol Plant (Oct 10, 2006)

Southridge Enterprises Acquires Industrial Plant (Oct 9, 2006)

Southridge Enterprises Secures $10 Million Financing (Oct 6, 2006)

Southridge Enterprises New Board Focuses On Ethanol (Oct 2, 2006)

 

 

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Management

Alex Smid
President and Director
Mr. Alex Smid is a Business Development and Marketing Professional with over 15 years of knowledge and experience in a variety of business sectors. Mr. Smid has specialized in the development of companies from initial capital financing and planning at start-up to operations and sales. He has successfully managed building teams of professionals to create strong corporate and operational infrastructures. Most recently, Mr. Smid has been consulting in the oil and gas sector, which has led to his interest and exposure to alternative energy. He has applied his expertise in research and due diligence to analyze alternative energy markets and operations. In addition to his background as an independent consultant, Mr. Smid’s experience extends to serving as an officer and director for various international companies. Several recent positions held by Mr. Smid include President and Director of Sparta Enterprises Inc. from 1999 to 2002 and Director of Radiant Energy Inc. from 2003 to 2006.

Gordon Samson
CFO, Director
Mr. Gordon Samson is an accredited Accountant with approximately 20 years of experience in the financial arena including positions with the Canada Customs and Revenue Agency (formerly Revenue Canada), a major Canadian institution as a senior banker and a regional, full service brokerage house. Mr. Samson has held Chief Financial Officer and Chief Executive Officer positions in both the US and Canada serving as director of a number of public corporations as well as being a member of a number of audit committees. Mr. Samson has further served as a consultant performing due diligence for acquisitions and other corporate transactions for various reporting companies.

Daniel Jackson
Director
Mr. Daniel Jackson has been active as an energy professional for over fifteen years—as an oil company international energy efficiency consultant and, for the last five years, as a renewable energy consultant, specializing in biofuel systems. Mr. Jackson is a passionate advocate for renewable energy. He is also a member of the Hustin Energy Advisory Council and a former member of the Cleanbio Venture Network Advisory Board. Mr. Jackson received a Bachelor of Science in Mechanical Engineering from the University of Texas.

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Contacts

Head Office

Southridge Ethanol, Inc.
3625 N. Hall St.
Suite 900
Dallas, TX 75219

Tel: (214) 347.9473
Toll Free: (877) 729.3835
Email: info@southridgeethanol.com
 

Investor Relations

For Investor Relations Information, please contact:

 

Toll Free: (877) 729.3835

E-mail: ir@southridgeethanol.com

SEC Filings

SORD filings with the SEC can be found here. All Fillings are current and the Company is fully reporting.

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FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Southridge Ethanol, Inc. current expectations about its future results, performance, prospects and opportunities. Southridge Ethanol, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Southridge Ethanol, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

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Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Southridge Ethanol, Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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