Smg Industries Inc (SMGI)

SMG Indium Resources Ltd was incorporated under the laws of the State of Delaware on January 7, 2008. On April 2, 2008, the company changed its name from Specialty Metals Group Indium Corp. to SMG Indium Resources Ltd. An indium (symbol In) is a rare, very soft, silvery-white malleable metal with a bright luster. All of the indium the company purchases and own is and will be insured and physically stored in third-party warehouses or storage facilities located in the United States, Canada, Rotterdam and or the United Kingdom. While it is not its current intention to do so in the short term, at its discretion and based on market conditions, the company may subsequently lend or sell some or all of indium stockpile to cover operating expenses. Its strategy is to achieve long-term appreciation in the value of indium stockpile, and not to actively speculate with regard to short-term fluctuations in indium prices. The company's plan is to achieve long-term appreciation in the value of indium stockpile primarily through price appreciation of the physical metal. The company faces direct competition from market participants in purchasing stockpile of indium. There are no other companies that have a business model solely dedicated to the purchasing and stockpiling of indium. The company's business model is designed to capture the long-term appreciation of the price of indium. All of its indium transactions have been and will be negotiated by company's Manager. Its Manager will be paid approximately 2.0% per annum fee based on its NMV as compensation for these services. Under a 'direct sale' transaction the company would record a gain (loss) equal to the difference between the proceeds received from the sale of indium and the indium carrying value. There are no governmental regulations which directly impact its intended operation of purchasing and lending indium. The company intends to use standard industry commercial terms recognized by industry participants in connection with the storage and shipment of indium.