Susglobal Energy Corp (QB) (SNRG) News

It seems extremely likely to me that Bruce wants Marc out and Bruce seemingly questioning whether there was something shady or not with regards to debt Susglobal started taking out a year ago makes it appear that he may have a way to give Marc the boot. Or at least that he thinks so. And I guess he sees something salvageable in the company if Marc were gone.

If he wanted more ammo against Marc, he could start with the way Marc has consistently provided non-public info to shareholders over the years and failed until Q1 of this year to disclose legal actions against the company in filings. Marc got slapped by OTC Markets at one point but IMO he's lucky that he's never drawn the scrutiny of the SEC.

Not surprised at all except for the fact he wants to remain on the BOD.

We hear from Bruce.

The 8k filed 10/3 has now been updated with a letter from Bruce (and his attorneys). The letter demands that it be filed with an amended 8k so Marc had no choice but to make it public.

Bruce says:

The secret shareholders meeting that was used to oust him was not legal under the section of Delaware law Marc stated in the 8k and that it did not comply with the company's bylaws due to technicalities about signatures and dates signed.

That he was never asked by Marc or the Board to facilitate a hook up with Veolia but he did it anyway and Veolia and "one of its international partners determined SusGlobal was not a suitable development partner".

He wasn't the only Board member who didn't chip in cash to help pay for the costs around filings but was singled out for not doing so.

He also questions the sources of debt financings Marc came up with from Q4 last year through Q2 this year and what the money was used for. Not sure if that refers to loans from Marc's company Traveller's International or mortgages but it sounds like it could be serious. Bruce says that information about these debt financings was not provided to the Board when requested.

So Bruce is not taking this lying down.

His letter is linked at the bottom of this filing:

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001652539/000106299324017693/form8ka.htm

Agree wholeheartedly. Normally, I’d be thrilled to see a CEO and majority shareholder drop $120k for more shares. Not so much here given the track record.

You probably saw that Marc bought $120k worth of shares in a recent placement, which seems to have been to help pay the accountant bills for the 10K and 10Q.

So the plan now is to hopefully sell the Hamilton properties for at least the $9 million in mortgages owed, which seems to me could be possible but I wouldn't be surprised if it sold for a little less given the purchase price of the 2nd lot last year, the price per acre of other empty land in the area and the fact that the building is just a shell with some missing sides. Plus there's at least $8 million in pressing current debt listed in the 10Q in addition to the mortgages.

They could raise the authorized share amount to allow for more dilution with no problem given that Marc controls a majority of the shares so no shareholders' meeting and vote is needed but who is going to buy millions of dollars worth of shares considering the company's track record and of course Marc hates dilution, probably even more now that he owns around 20% of shares out.

Now he's left with just Belleville and will still need tens of millions of dollars to finance an RNG facility there. I'm sure he's got some kind of scheme but we've seen how successfully his schemes have worked out in the past.

Never mind. Found it. Truly disappointing

Where did you see this? Thanks!

Marc has truly outdone himself.

Using a secret meeting to oust Bruce from the Board because Bruce wasn't able to secure his former employer Veolia as a partner and because Bruce didn't want to put any of his own money into the sinking Susglobal ship, probably not unless Marc was replaced.

Notice that the 10K states, "the Board had the impression that Mr. Rintoul would help facilitate a possible transaction", not that he guaranteed a Veolia partnership and who could guarantee that their former employer would absolutely come through with an investment anyway, especially when it's a huge company like Veolia.

Seems to me that this reliance on an "impression" of a "possible" transaction could open the company up to another lawsuit if Bruce wanted to join the parade of court cases.

Susglobal was languishing until Bruce came on board with the only true ray of promise in the last couple of years being the $138 million offtake agreement that Bruce undoubtedly played a huge part in securing. Marc was not even pursuing RNG until after Bruce showed up.

I suspect that Bruce wanted a change at the top and that's why he really got the boot.

I can't believe Marc found enough shares to back him and allow for the secret meeting given the sorry state of the company and just the fact that he felt like he had to do it in secrecy says a lot to me. This is another slap in the face to shareholders that have already been abused much, much more than enough.

Here's the listing. It's both properties combined and is listed without a price in hopes of it sellling for the $14 million Colliers appraisal value last year but that appraisal was for the fancy renovations being complete. You can see how little renovation was actually done yet Marc somehow wound up owing the contractor $2.1 million USD that's now due Feb 1 after the lawsuit brought by the contractor was settled. He had to offer the contractor extra to get the construction lien removed because otherwise a buyer wouldn't be able to do any work on the building but if he misses the Feb deadline and the building isn't sold by then, the construction company could wind up with it.

https://www.collierscanada.com/en-ca/properties/industrial-land-building-available-for-sale/can-490-520-nash-road-north-hamilton/can2015924

It's hideous.

$33 million in debt. Less than $8,000 cash. No current operations. Belleville equipment repossessed for non-payment of the lease. Both Hamilton properties have been listed for sale.

Anyone read quarterly report yet. Im afraid to look

WAY overdue for news re. operations.

He knew exactly what he was doing.

I think shareholders would have a very strong case for a lawsuit at least against the company considering the times he stretched the truth and his tendency to make promises through emails or on the phone with individual investors, probably in violation of SEC regulations. The problem is that the company has nothing left of worth. Not sure if he could be held personally liable but he did seem to be very cavalier in his dealing with investors behind the scenes.

So many crickets.

Sure looks like Marc screwed all his shareholders while collecting 40k monthly in salary.

Certainly hard to understand

Can't file on time with zero revenues. Joke

Marc did file his NT 10Q today stating that he'll need more time to get the 10Q completed but it was a couple of days late.

He missed the deadline for filing the 10Q, which is not unusual, but what is unusual is that he also missed the deadline for filing the NT 10Q required when a 10Q is late. So the disappearing act may be happening before our eyes. We'll see if anything happens this week but not filing an NT 10Q on time is serious.

The Belleville plant was never make any money in the past as same on the future as Marc just only do the composting ..
This mean this company will disappear very soon
Sell it for $.03 before it goes to ZERO..

Thanks for the info. It likely means that Marc's only hope is to build an RNG facility at Belleville, provided Belleville's environmental issues that caused it to shut down have been dealt with.

The problem is that the amount of equity Susglobal has in the combined Hamilton property, maybe $880k at the most, is miniscule compared to the amount of mortgage debt, around $9 million was outstanding as of the end of March. Plus there's the fact that some of that debt is secured by the Belleville property so if he can't pay that debt he loses Belleville too.

I'm sure he's banking on selling the Hamilton property for something like the $14.2 million Collier's appraisal but from reading Collier's report, it appears to me that appraisal was based on Hamilton construction being complete with the shiny new building upgrades finished, not in the current state of disrepair. The market price for the second Hamilton parcel was $2.3 million last year, that's what Marc paid for it and the original Hamilton property was bought for $3.7 million in 2021. I wish Marc the best in getting as much as possible for the combined property but he's going to need one hell of a real estate agent to make money on the deal.

Plus there are still outstanding lawsuits, including one by the contractor for Hamilton for $2.3 million in unpaid bills that appears to be moving forward.

I got word from Marc that they are selling the Hamilton location to resolve their liquidity challenge. Not sure what that will mean.

9 million. Wtf. Shut down by the government bc of environmental issues. This turned to complete shit. What incentive does any company have in investing in this company? What I once thought was going to be my best investment of my life turned into a disaster. The ceo has a huge stake in the company succeeding so at minimum I know he's probably working around the clock to get things going

At least $9 million in total lawsuits against the company.

That's what has been on court dockets this year. At least two have been already decided in favor of the plaintiffs because Marc mounted no defense against them, likely because he couldn't afford attorneys and probably because he realized that he couldn't win anyway.

I found a default judgement against Susglobal for $1.3 million USD plus 24% interest since 11/22 that was handed down in May. The suit was brought by an investor who bought a note in 2021 and only got a partial payment in return.
https://cases.justia.com/new-york/other-courts/2024-2024-ny-slip-op-31836-u.pdf?ts=1717190475

The Belleville power company won a default judgement against Susglobal for $378k CAD earlier this year and the same could have happened with the $4.5 million USD suit brought by different noteholders because the 10Q said that Susglobal was "unable to retain counsel". So it seems likely that Marc is on the hook for another $4.5 million.

There is still the $3.2 million CAD suit brought by the Hamilton contractor and another for $120k CAD brought by Susglobal's former auditor that are waiting to be adjudicated. Susglobal has provided no attorney for either suit.

Plus there are likely $5.2 million in mortgage payments currently past due that could create more lawsuits against the company this year..

The company is being absolutely crushed by debt and, as much as I hate to say it, I really don't see any hope for survival.

Neo, anything new from Marc?

Yeah Belleville is not operating and hasn't been since January.

First, Susglobal lost its letter of credit last year, which is a guarantee required by the Ministry of the Environment in part to show that the company can pay for cleanup in case something goes wrong environmentally.

Then two things went wrong environmentally: there was a buildup of ammonia in one of the buildings at Belleville and water from one of the leachate ponds on the Belleville property leaked into a ditch owned by the City of Belleville. The city is trying to make Susglobal reimburse them for all the costs of cleaning up the leakage.

So now the company needs funds to cover whatever it costs to become environmentally compliant again and Marc needs to find a financial institution that will give them a new letter of credit for up to $470k before Belleville can start receiving waste again.

Then there's the charge of lease with the MECP guarantee that's tied to the PACE debt settled last year, which could have implications for Susglobal continuing to use the Belleville property or to continue using it as collateral, as they have done a few times for outstanding loans but that's beyond my level of financial knowledge.

It's in the annual report. I believe they now have zero operational facilities.

Where did you see the Info about being shut down by the government? I haven’t seen that

Of course it was. He's been all talk for years. Hasn't ever produced any results. His operations are shut down from the government.

I hope Marc’s idea of positive news after the 10Q was not simply the trademark. That’s not going to cut it.

This is a total disaster. Non stop shares being sold. Shut down by the government. Massive debts. No financing. High ceo salary. This just sucks in every way possible

Lovely, what a shock (not).

Yuuuk

What is new but not in the 10Q is that the contractor for Hamilton, Gillam, filed a suit yesterday for nonpayment of $3.2 million. At this point the company needs around $50 million to settle all the debt and fund the company's plans for the next year.

Nothing really new, but pretty darn ugly.

10Q Filled https://www.otcmarkets.com/filing/html?id=17606902&guid=XWQ-knG_sr7fJth

No chatter on Stocktwits or twitter so the rise likely isn't just from day traders finding the stock. Maybe somebody knows something or was at least convinced by Marc into thinking they know something. I bought a little under 3 cents after seeing the last pump so am happy with the increase but we'll see if it sticks.

what the f are you doing on the snrg then

reversal coming it looks like IMO

It's been the same story for the past 3 years: waiting for Marc to raise money. The problem is that debt has been piling up during the 3 years he's failed to raise money. That's why the share price has fallen to where it is.

More debt means more money needs to be raised just to get out of debt before he can start building facilities, and this has caused the value of the company to decrease. For the stock to really turn around he needs money to cover debt plus money to build.

IMO at some point this will reverse. maybe soon?

yep pos all selling

Lots of selling this am. Well done Marc!

It still needs to be accurate to not run afoul of the SEC. Probably just had to spend so much time on the 10K that the 10Q was put entirely on the backburner until the 10K was completed and it's not like Susglobal has manpower to spare.

Seriously, why the delay with the 10Q? It’s not like it’s audited.

Popped back to .08 yesterday for a second. It’s on the rise! It’s always darkest before the dawn! Let’s goooo!

dang! stock is .029 now? glad i got out at .07ish. i guess all the people IN THE KNOW were out in the .20s and higher.

When is the 10Q and what kind of good news could he have? Financing?

Of course gotta take it with a grain of salt at this point in this game but he responded to my email today which I all but called out what it looks like is happening and apparently some good news will be released after the 10Q. But……

It obviously depends on what somebody would pay for the land but for the most recent Hamilton lot purchased last Nov minus interest that's accrued since November: by my calculation the company probably currently has around $145k in equity. As for the Hamilton land with the building and Belleville, it makes my head hurt to try to figure it out with all the mortgaging but I doubt it's anything, plus Belleville is laden with environmental remediation costs. The Belleville compost covers and buildings are given a net book value of about $1.9 million combined.

It's obviously so frustrating to see the large RNG offtake that should be able to be used as leverage but Marc wouldn't be the first to fail in that respect. Look at Gevo stock, it was $15 bucks at one point and is now at 70 cents because their CEO has not been able to raise the capex to build the facilities to satisfy his billions in sustainable aviation fuel offtake.

It's not over for Marc but the mortgage refinanced in Dec has a $4.2 million payment due in less than two weeks on top of everything else.