THIS JUST IN:
AEHI Secures Funding Facility for Idaho Nuclear Site
BOISE, Idaho, October 28, 2010 - Alternate Energy Holdings, Inc. (OTCQB:AEHI), a developer and marketer of innovative clean energy sources based in Eagle, Idaho today announced a funding facility, Securities Purchase Agreement, with Source Capital Group, Inc. for the committed purchase of up to 170 million shares of common stock which is approximately $120 million today to cover payments for land, water rights, engineering work and Nuclear Regulatory Commission (NRC) application fees to obtain a combined construction and operating license (COL) for building and operating a nuclear power plant in Payette County, Idaho.
"Under the terms of the agreement we can draw upon the funding facility as needed for up to three years, which will allow us to effectively deploy capital following local approval in Idaho while minimizing dilution to shareholders. This facility is very timely as we expect the local approval process to be finished within the next few months," said Don Gillispie, AEHI CEO.
Now, for some background on Source Capital Group and their Chief Financial Officer, Russell W. Newton:
From this article about a company named Xethanol:
"Russell W. Newton, chief financial officer of Source Capital Group Inc. in Westport, Conn. The NASD imposed a $180,000 fine against Newton and a previous firm, Merit Capital Associates Inc., in 1999 for using brokers known to have been barred from the industry. The industry group also suspended Newton for 30 days and ordered him to retake a qualifying exam.
Newton was Merit's chairman. A joint investigation by the NASD and the State of Connecticut found that Newton, on behalf of Merit, paid $167,500 to people who were disqualified from working as registered brokers. The investigation also found that Merit representatives in one branch office used sales scripts that were materially misleading and made exaggerated and unwarranted claims.
The Utah Division of Securities brought additional charges against Newton and Merit Capital in 2001, alleging the sale of unregistered securities, sales by unlicensed agents, failure to supervise and securities fraud. Newton settled the charges without admitting or denying guilt. He and Merit were assessed a joint fine of $25,000.
According to Xethanol's SEC filings after the reverse merger, Newton owned 94,639 shares and had options on an additional 12,187 shares." (emphasis added)
And a synopsis of his troubles in Tennessee here:
"Merit Capital Associates. Inc. shall pay a civil penalty in the sum of fifteen thousand ($15,000) dollars..." (emphasis added)
"--The firm's chief financial officer Russell W. Newton paid more than $200,000 in various fines between 1999 and 2001 for problems at his previous company, which later joined with Source Capital. No violations have been listed for Newton since." (emphasis added)
More on flocks of birds, including sparrows, later.