Some contributors to the thread may not like the contents as being in the past, let it go etc, I personally think it is relevant and a lesson of properly doing your own research before investing in a company. I have also previously admitted I was guilty of not being thorough enough prior to buying in to GPP, by going back only a few of years looking into the CTL/OHD project, the reason I am invested in GPP.
I will eventually post the rest of my research notes and it is understandable but unfortunate that the great potential that exists in GPP's projects (and they all have the potential to be company makers in their own form) is being eroded by a lack lustre management team.
The crux of it, it is history repeating and can/will management eventually change and get a project to the market that will be able to sustain shareholder value, I am starting to think they can't and a change is needed.
A history lesson in GPP’s management …………Part 1
The transactions of tenements prior to listing were difficult to understand as was some of the shares that were issued/brought prior to the IPO, as well as tracking IPO tenement and share transactions.
A bit like “who is on first”, but definitely some “eye brow” raising data in here, well IMO only of course.
The MO of management begins ……………
Sleight discrepancies in financial reports pre listing:
View attachment 1049923
View attachment 1049926
https://www.asx.com.au/asxpdf/20080229/pdf/317sfj83zwzmlz.pdf
There were no shares issued or
related party transactions in the year ending June 30
th 2006 but King loaned the company $304,949 (page 7 of Financial report) during the year, appears they were struggling a little, with a cash balance at start of year of $9,429. The loan was repaid with the issue of 30,490,868 shares (pre consolidation)
2007 Financials shares issued doesn’t include 600, 000 “new” shares (post consolidation) issued to Heritage Petroleum Plc (Flavelle a director) for
Permit 425 valuing the transaction at $60,000 (assuming that they were issued @10c) – (financial year ending 30th June 06) events subsequent to reporting date, page 19
https://www.asx.com.au/asxpdf/20080229/pdf/317sfj83zwzmlz.pdf
Greenpower issued 6M shares
@10c to King (Lodestar) for the acquisition of WA tenements
EP 425 &
EP 447, valuing the transaction @ $600,000 (Year ending June 2007 Financial Statement, sect 17 – related party)
View attachment 1049935
From the same announcement (sect 10 – other assets) shares were issued for only
EP425
https://www.asx.com.au/asxpdf/20080229/pdf/317sfv74y1qkbv.pdf
They also issued 4M shares @ 20c to European Gas Limited (Flavelle a director) for the same WA tenement
EP 447 valuing the transaction @ $800,000 (Investigating Accountants Report)
https://www.asx.com.au/asxpdf/20080229/pdf/317sf4vltqz40l.pdf
Further more, I don’t know how this works but, (any budding lawyers out there) CCC Methane (a wholly owned subsidiary of GPP) entered into a tenement agreement with Heritage Petroleum and Lodestar? (King) on 28
th Feb 2006 to acquire 100% interest in EP425 (page 65 of the prospectus) Unfortunately, there is no information I can find on who actually owned the tenement other than what is in the prospectus. Heritage Petroleum (Trustee) was the legally registered holder of EP425, other than reading it in the prospectus
I can’t see how or why Lodestar were issued 6M shares as being the beneficiary? (6.3 Prospectus)
Trying to get any historic information of either Heritage or Lodestar draws blanks.
Then further in the Prospectus
“Antares” are the legal owners of EP425 (6.5 prospectus)
https://www.asx.com.au/asxpdf/20070914/pdf/314k19551s1h75.pdf
BUT!!! Wait, rut roh...............
In European Gas’s Financial report for year ending 30
th June 2007
They completed the acquisition of Heritage Petroleum (registered owners of EP425) and were in the process of divesting exploration permits
EP425 & EP447 (page14 of report) so if European Gas owned these tenements why did Lodestar get paid for them?
https://www.asx.com.au/asxpdf/20071001/pdf/314vwt03yrbpmq.pdf
The above certainly does raise the eye brows on who actually owned tenements EP425 & EP447 but also interesting was the
value of $5,000,000 that was accredited to the tenement (EP425), (as reported in year ending June 30 2007 (page 27) versus the deemed value “as above” in the 6m shares issued to King ($600,000) and if you add in the shares issued to Heritage Petroleum Plc ($60,000) and European Gas Ltd ($800,000), $20,000 paid to Antares, then the total cash and deemed value of shares issued for the two tenements $1,480,000.
I am at a loss to understand, if I held tenements valued at
$5,000,000 I doubt that I would be only accepting shares to the value of
$600,000!!
View attachment 1049941
Tenements purchase for IPO listing:
From Planet Gas: EL4500, EL4807, EL4811, PEL428 (20%) EL4859, EL4860, EL4861, EL4862, EL4877
JV with Lynch Mining – EL4368, EL4369, SAPELA145, SAPELA146 for consideration of 12,500,000 shares in GPP @20c = $2.5M deemed valve.
European Gas: EP425, EP447 – for consideration of 4,000,000 shares in GPP @20c = $800,000 deemed value
Heritage Petroleum: EP425 – for consideration of 600,000 shares in GPP@10c $60,000 deemed value
Comet Ridge/Davidson Prospecting – contract to acquire 20%
See above for shares issued to King….
The prospectus (sect 2.9) clearly states: “
The minimum subscription for the offer is $6M comprising 30M shares. No shares will be allotted under this prospectus until the minimum subscription has been reached.”
https://www.asx.com.au/asxpdf/20070914/pdf/314k19551s1h75.pdf
Going on the announcement “Statement of Commitments” they never raised the required minimum subscription monetary value,
https://www.asx.com.au/asxpdf/20080229/pdf/317sfbjs1kc6gl.pdf or the 30M shares minimum.
22,638,850 shares issued under the public offer *note 2:
https://www.asx.com.au/asxpdf/20080229/pdf/317sf4vltqz40l.pdf
Wait, there is more: as per the 30
th June 2008 Yearly Financials:
Non-Cash Financing and Investing Activities:
Subsequent to the IPO 43,019,010 shares were issued, of this 10,138,850 shares raised cash of $1,783,405 and the rest of the shares were issued for acquisitions.
So we just popped out another 20m or so shares?
Also interesting to note, the deals between GPP and European Gas / Astron, whereas my thoughts are that the IPO was poorly subscribed to and they needed topping up to get ASX listed as per the minimum requirement, eg:
Lodestar (King) subscribed for 12,500,000 shares @20c ($2,500,000) after being satisfied by the transfer of $2,500,000 of shares in Astron (King a director).
Flavelle subscribed for 1,860,160 shares @20c ($375,032) after being satisfied by the transfer of $375,032 of shares in European Gas (Flavelle a director).
Royalty Interests over Exploration Licence 4500 was surrendered to GPP by former shareholders for 2,000,000 shares issued under this Public Offer – valued at $400,000 which actually detracts from the Royalty terms outlined in the prospectus, (sect 6.7). One wonders why they opted to pay out the royalty interests in lump sum versus the term as per the prospectus.
The cost of the offer was reported differently on 3 occasions: from these announcements – more oopsies?
$453,000
https://www.asx.com.au/asxpdf/20080229/pdf/317sfbjs1kc6gl.pdf
$243,125
https://www.asx.com.au/asxpdf/20080229/pdf/317sf4vltqz40l.pdf
$288,493
https://www.asx.com.au/asxpdf/20081001/pdf/31cn4cz5xbqq92.pdf
Even prior to and at the time of listing, King has had to inject money into GPP to
1) to provide funds to for working capital (2005/2006)
2) to actually get it listed and
3) over the subsequent years to keep it operational all due to the inability to progress a project beyond a pipe dream and using funds to chase the next big thing.
The agreement between Lodestar to buy 12.5M shares in the IPO on the transfer of $2.5M worth of shares in Astron only looks like it is serving a, yes we have enough to satisfy the minimum requirement of the prospectus to be listed but then channel the funds raised into another company, where King is a director??
The agreement between Flavelle and European Gas has the same purpose, but to serve what means?
The funds raised by shares purchased by McCullough pre IPO were also to assist seeding for listing on the ASX.
All the above is
MY OPINION ONLY and information has been directly sourced from available announcements released by all companies mentioned.
