Greenfern

[Fortunecookie]

Isn't one of the directors the ex SFO boss. It's a big call.

Anyway I here with my popcorn.

[SailorRob]

Sharesies are absolutely implicated in this being the facilitator of the last rights issue

Man you wait till you read what I've dug up.

[thegreatestben]

Looking forward to reading it
I had some of these before being listed and sold for a decent profit - sounds like I got lucky

[SailorRob]

Looking forward to reading it
I had some of these before being listed and sold for a decent profit - sounds like I got lucky

Sweet, yeah there's a bunch of links to other articles within it that I need to make sure work when I post it etc will try get it up this evening.

[SailorRob]

After a friend mentioned to me that they had been offered a ‘Shortfall’ through Sharesies to invest in a company called Greenfern Industries Limited, I decided to take a closer look and was so disgusted with what I found, I wrote up a small report.


While reading through this please remember that when this company was desperately seeking money after having taken so much money out for themselves and the conventional route failed, it was pushed on Sharesies’ clients via their app, email list, website and Facebook page. Sharesies say that their aim is to democratise investing and before we were graced with their presence, they say that ‘investing was too hard, too complex, and too damned scary for too many’ They are supposed to champion the rights of the small retail investor and state ‘Our investing experience works towards giving people the confidence and control to invest. We believe that by giving someone the opportunity to invest—while supporting them to learn—we’ll create a community of financially empowered people’ The reality is that they at a minimum have broken their fiduciary obligation to their clients and are complicit in what ultimately could be viewed as fraud - but you can judge for yourselves.

Also remember this company was not only allowed to list on the New Zealand Stock Exchange, the CEO of the exchange, Mark Petersen sings the company's praises in a youtube video https://www.youtube.com/watch?v=dM-DifKZdns&t=71s Think of all the compliance officers, all the fancy suits in their offices, the regulators and the regulations that this abomination slipped through. The Financial Markets Authority investigated the company but as far as I’m aware did nothing.

There is nobody that is going to protect you but yourself, even though it is their job to do so. Everything in this report I have sourced from public information, mostly through Greenferns own filings and some from various media reports. Lots of people get rich in the same manner as I will highlight in this report and nobody cares.

While not the intent of the report to delve into the NZ cannabis industry or lack thereof, note that there are many NZ Cannabis startups that rely on hype and investor naivety to raise capital and this area is the real wild west of capital markets. There have already been bankruptcies such as Medican, who said they were going to ‘build an industry to rival NZ’s Kiwifruit’. Some of the biggest names in the Bay of Plenty's business world got sucked in.

I strongly recommend reading this Stuff article https://www.stuff.co.nz/business/300...ijuana-venture before reading my report and I think Greenfern is a bigger scam in terms of the money involved. Note the Serious Fraud Office's lack of interest.


A RNZ article https://www.rnz.co.nz/news/national/...-t-materialise also gives a good summary of the industry, here’s a quote from the article ‘And in fact, almost all the money poured into the New Zealand cannabis industry is likely to go right down the gurgler’. I strongly disagree, it won't be almost all, it will be ALL.

In 2018 The company presently known as Greenfern Industries (GFI) was incorporated as Greenfern Medicinal Marijuana. It had no assets and was merely an idea or a ‘business plan’. The founders collectively put into the company $36,167 as ‘establishment income’ and recorded it as revenue in the 2019 financial statements. This money was used for the purposes of establishing the Company and for day-to-day operations of the Company after its inception. As far as I can tell this was the only money ever put into this company by the founders. It was all expensed (gone) that year.

So at the beginning of 2019 we had an incorporated company that owned nothing, (had zero assets) that was owned by 13 shareholders in proportions from 20.9% down to 0.1%. The top 5 owned 88.11% of the company. It is critical to understand at this point that 88.11% of nothing is nothing. So although the 13 shareholders owned 100% of the company, that amounted to zero. There was nothing. We will later see that at this stage of nothingness the company was valued by themselves at $6,666,667 as they ‘forecast’ revenue and then applied a multiple to that forecast. Cannabis entrepreneur Ross Smith, from the linked article above, known as the ‘wolf of weed’ heavily criticised Greenfern at the time over what I have just raised.If you read the article you will know that really is something special.

It is here that the first Greenfern scandal (that I know of) broke out when Director and 18.81% shareholder Tim Mark Johnson had part of an online conversation leaked. The conversation was between nine "Greenfern strictly confidential" group members and the leaked conversation involved Mr Johnson discussing ‘grower strains’ and telling its other directors to “pump up” Greenfern’s Intellectual Property books and “make investors feel better – like a company of substance” - this was all to try and create an illusion of value for the upcoming crowdfunding raise. To try and turn nothing into something by saying that their Intellectual Property (of which there wasn’t any) was worth something.

This scandal was reported on by the NBR https://www.nbr.co.nz/business/medic...line-comments/ at the time and led to Mr Johnson stepping down from his role as director. Or so he said. At the time of publishing which was after the crowdfunding raise, his role had not been removed from Greenferns website or the Companies Office (a government agency).

In a written statement Mr Johnson said ‘It was an over-exuberance on my part and there was no intention to mislead investors. I appreciate my comment would concern potential investors. However, Greenfern has been nothing but scrupulous in the financial information that we have provided to our investors’

Well as we are about to see, stating that ‘Greenfern has been nothing but scrupulous in the financial information that we have provided to our investors’ is misleading enough as it is.

The first (of many) magic tricks courtesy of Collision Crowdfunding.

The founders of Greenfern managed to sell 30% of nothing at the bargain price of 1.8 million dollars. And guess who now owned the other 70% of the new 1.8 million in cash from unsuspecting crowdfund investors. Yes, the founders.

So before the crowdfunding, the founders had collectively parted with $36,167 and immediately afterwards they had collective ownership of over around $1.2 Million in cash (70% of the new shareholders money they had just put in through the crowdfunding). Or a 3,300% instant return. But we cannot be too sure about the exact numbers as the;

• Collective crowdfunding website says that $1,818,482 was raised

• The NZX listing profile says $1,963,204 gross or $1,733,926 net http://nzx-prod-s7fsd7f98s.s3-websit...334/357436.pdf

• The audited 2019 financial statement says $1,620,626 came in with $86,000 in associated costs - so $1,534,626 net.

So what actually happened is that $1,963,204 was put in by the crowdfunders, Collision crowdfunding took $229,278 or 11.7% of the money for the raise which is fair enough… BUT then Greenfern spent another $199,300 or another 11.5% of what was left for what they say were ‘costs related to the shares issued’. After reading this report, you will be under no illusion as to where most of that $199,300 ended up.

Only $1,524,626 was leftover for the company.

Well, was it for the company? We see net assets listed at $1,458,648 in the same financial statement which was 31 March 2019 only a Month or so after investors put in who knows exactly how much. At this time, John Hussey had already extracted $40,671 out for himself in ‘contractor payments’ and Fluidity had extracted $12,046 for advertising services. Fluidity is owned and directed by… John Hussey. Now maybe these payments are all above board and at a competitive price for the benefit of the company and thus all shareholders. And maybe they are not, why should these related party transactions exist and have no detail or explanations, surely if they were beneficial to the company the related party transactions would be justified?

Well folks, grab some popcorn because we are only just getting warmed up. So as of the 31st March 2019, of the $1.8 million put in by the investors (or gross $1,963,204), John Hussey had already got his hands on $271,500 that we know about, in equity ownership of the crowdfunders cash within the company and from payments made back to him.

For the next section - on the valuation of the company that was presented to prospective shareholders during the original Collision Crowdfunding round, it’s important to note that I only have the current document and as we will see later, the second crowdfunding round was investigated by the Financial Markets Authority for an absolutely disgusting and illegal act that beggars belief. Subsequently they (Greenfern Directors) went back and changed the offer document so that the original fraudulent document doesn’t exist. The point being the first crowdfunding document that I'm about to review may not be the original, but the misleading information still remains in it so it will suit our purposes.

The company's valuation, we are told, was undertaken by the founding shareholders. They used something called the ‘multiple of projected revenue method’ Which means make up a guess as to what future revenue will be for a company that only exists as an idea and then multiply that by some number. And this is what Tim Johnson was trying to ‘pump up’ in the leaked online conversation.

The listing document states the valuation to be $6,666,667. No I am not making this up. But the document also states that $2,000,000 is equal to exactly 30% of the company, so by my calculation the ‘valuation’ is $6,666,666.66. I think they threw the 7 on the end to take the Devil out of it.

So all you need to do is invent an idea, then invent how much revenue your idea will make and then invent a number to multiply this by to arrive at your company's valuation. We can all do this, but of course another name for this is Bul$*^t. In most cases this is harmless childish fun, but when you use this make-believe to scam real people out of real money using dubious Crowdfunding facilities then it becomes very, very real.

What comes next?

Well, if you have managed to take a $36,000 dollar ‘investment’ and turn it instantly into $1.25 million while also funnelling another $58,000 back to yourselves (total related party transactions) The answer is pretty damn obvious.

Do it again, but do it better.

The second Crowdfunding round, colloquially known as the Great Hydro Heist., The directors of Greenfern decided they were going to buy a Taranaki Hydroelectric power plant. Now any image this has conjured up in your head, just hold on a minute.

In the glossy prospectus (the one later changed after the Financial Markets Authority probe AND after the money had gone) They told investors that this acquisition was critical in ensuring a competitive advantage in the NZ cannabis growing industry and of course all the guff about renewable power as you can imagine. Before moving onto the actual fraud I’d like to briefly point out a couple of other issues. They state that the purchase of this ‘landmark asset’ will ensure that ‘Greenfern’s electricity costs will be capped at the price of operating the power station, equivalent to approximately one full time employee’. Really? So there are no capital costs involved with operating the power station and the cost of the capital used to buy it is free as well? There are many things glaringly obviously wrong with this plan but they take a back seat for reasons we are about to see.

The Hydro plant was owned (prior to being bought by Greenfern) by a company called Renewable Power Limited which appears to purchase decrepit small old river hydro stations that are a relic of our small towns pasts (think of the tiny old dairy factories scattered across the country) and then do who knows what with them. This particular plant which investors were told was the key to the company's future, was in all kinds of trouble.

So just to be clear, Greenfern was raising funds through Crowdfunding to buy some decrepit old hydro plant from Renewable Power Limited.

And who owned Renewable Power Limited?

Tim Johnson, the Greenfern director and shareholder owns 90% of the power station AND Kevin Chong another Greenfern Shareholder who was also in from the beginning owns 5% of the power station. Greenfern co-founder and managing director Dan Casey was also listed among the shareholders of Renewable Power until September 29, 2019.

Casey and Johnson have known each other since their high school days in Dunedin.

The Crowdfunding document (which has now been changed) was 38 pages long. The Power Plant was one of the biggest things discussed in the document and in all of the 38 pages they did not see fit to mention this massive conflict of interest. As reported by the NZ Herald - The documents left an impression the deal for the hydroelectric plant was being made with an unassociated third party, simply saying: "Greenfern has a binding right of refusal in place to acquire the facility".
The whole sordid affair is reported here by the Herald.

You can see for yourselves by reading this article that Dan Casey the director of Greenfern is a pretty interesting individual.. His comments are stunning in their lack of comprehension about what he has done.
"Some people could look at that one way or the other, but we are totally transparent about what we're doing."

Pressed on whether investors deserved to know about the close ties between the two companies, Casey acknowledged he may have done things differently if he had to do it again
.
"Look, hindsight is a wonderful thing," he said. "Would we do it differently next time? Potentially. But we can't take that back now."

So he is stating in the national media that they are totally transparent about what they are doing and that he would only potentially do things differently if he had to do it again.

But there is more, much more. They haven't even listed on the stock exchange yet!

This is from their own 2021 NZX listing document about the changes that were made to the crowdfunding document -
The Information Memorandum for the 2020 crowdfunding round was updated on two occasions to address concerns raised by the Financial Markets Authority: (a) on 7 October 2020 further information was included on page 18 regarding what was then the potential purchase of the Hydropower Station; (b) on 19 October 2020 further information was included on page 7 to clarify the status of all prior, current and future licences, particularly the medicinal cannabis research licence held by the Company at that time.

Now we discover that this piece of worthless junk they call a power station isn’t even operable and has been shut down since the Environment Court issued an enforcement order in 2017. The link to the court order is here. There were 8 infringement notices and two abatement notices between 2015 and 2019. As reported by the Herald there are all kinds of maintenance and environmental problems and an ongoing battle between the owners and the Council.
This 2017 piece by Stuff is a great insight into the dysfunction of the power station and the relationship between the former director of Greenfern, Tim Johnson and the Taranaki Council.

Mr Johnson stated that "The TRC recently attacking Renewable Power Ltd's environmental performance is like God attacking Jesus for being unholy," As we have discovered so far, there is nothing holy about these individuals involved in Greenfern.

It turns out that Tim Jhonson then had a falling out with Greenfern and after leaving the business formed a shareholder activist group called ‘Greenfern Watch’. Newsroom reported in November 2022 that ‘The crux of the two-member shareholder activist group’s claims is that Greenfern’s small hydropower plant, which it uses to generate electricity for its growing operation, isn’t actually working’. This led to Casey having to engage once again with the NZX regulators.
Whilst on the topic of the second crowdfunding raise that they did in order to purchase a decrepit broken old hydro station from themselves and didn’t disclose it, let's take a look at the numbers and financial information provided by Greenfern to prospective investors, bearing in mind that earlier, a director (Tim Johnson) had provided a written statement that

‘Greenfern has been nothing but scrupulous in the financial information that we have provided to our investors’.

Please also bear in mind that this prospectus document that I have viewed has been retrospectively changed (as reported by the NBR) to add in the previously undisclosed ownership of the power station. It’s a wonder they have not gone back and changed these numbers. Let us remember that the original valuation done by themselves was based on made up revenue projections and a made up multiple, so the forecast revenues are immensely important information and must be based on something real in order to comply with New Zealand Financial Markets Conduct Act 2013.

[SailorRob]

As stated in the second crowdfunding document the revenue for 2020 was a grand total of $22,676. That’s the total amount of money that came into the Business. Meanwhile $241,649 went out to the founders in related party transactions alone that year. More than 10 x the incoming revenue went out back to themselves. There was a bunch of money going out to them in 2019 as well.

So the forecast revenue is the most important number for this company at this stage and the most important information contained in the Crowdfunding document (the power station being bought off themselves would have been more important, but it wasn’t there). We can see the forecast revenue for 2021 was $223,560, for 2022 it was $7,918,513 and for 2023 it was $28,847,059.

This is a forecast rise in revenue of One Hundred and Twenty Eight THOUSAND percent in 3 years.


In an article titled ‘Cannabis Bubble Set to Burst?’ by the NBR,13th October 2020, this very set of numbers is highlighted very sceptically. Have a look at the end of page 9 of this report to see how the actual 2022 Revenue stacked up against this forecast.

Now look at the EBITDA figures and the Gross margin for 2023. A forecast 73% Gross margin. 73% wow, that’s 30% higher than Google. How many up and running successful medical cannabis companies anywhere in the world have gross margins of 73% let alone after 4 years of operation?
Why did nobody question these numbers, the Equities Crowdfunding company, the FMA, the NZX when they went to list, the Directors themselves and Sharsies who we will get to in good time. In the Herald article linked above, they state;

‘Following Herald inquiries, the Financial Markets Authority (FMA) said it was looking into the information provided to investors and had made contact with crowd-funding platform Equitise. "All equity crowdfunding offers are subject to 'fair dealing' requirements in the Financial Markets Conduct Act and issuers using a crowdfunding service must ensure that offer documentation is not misleading or deceptive including by omission," a spokesman from the FMA said.
How could any rational person claim that these numbers are not grossly misleading?

We have covered quite some ground so far but we still haven’t even got to the NZX stock exchange listing where all kinds of complex regulatory compliance must be met that is required by law. It’s probably worth posting this link to the video of Mark Peterson the CEO of the New Zealand Stock Exchange singing Greenferns praises as they list.

Think about how many compliance officers and legal staff the NZX employs that are supposed to screen this rubbish from being listed on the nation's premiere exchange. It is mind blowing. Mark, this is a disgrace. How many failures within the NZX exchange alone had to occur in order for them to let their top man shill this in a public video?

[SailorRob]

So onto the second Crowdfunding round,

This time they raised, according to the NZX listing document $2,883,000 gross or $2,673,334 net. This raise broke the Equitise record for the highest NZ crowdfunding raise and sucked in 1,268 individual ‘investors’. Remember this raise was based on a forecast 128,000% revenue increase in 3 years, gross margins 30% higher than Google and was actually to purchase a derelict Power station from themselves.

The 2021 audited financial statements for the year ended 31 March 2020 show $2,905,337 coming in from total share issues and $300,000 going out as share issue costs leaving net $2,605,337.

Looking further through the 2021 financial statements leaves me wondering how deep into this pestiferous quagmire I really want to wade, but let’s keep going for now.
The $2,605,337 came in the front door in November 2020 and by March 31st 2021 a mere 4 Months later, $2,067,403 had gone out to related parties.A small portion of this was in share based payments but the cash reconciliation shows that at the beginning of the year there was $991,937 and by year end only an increase of $305,117 but a net $2,605,337 had come in from investors. So $2,300,220 had gone out in hard cash and a bunch more in share based payments. Let’s dig in.
First of all we have the power station, $32,895 went out to renewable power in lease payments before the $700,000 in cash and the $50,000 in shares for a total of $782,895, this went to shareholder and former director Tim Johnson, shareholder Kevin Chong and we don’t know Casey's involvement, we just know he used to be involved.

Next John Hussey and his contractor payments this time of $260,069. What is he doing? Hussey has also landed another Greenfern contract, would you believe for $16,000 per Month as well as a 4% bonus on funds received from wholesale investors. This will show up in the next year.

Phillip Brown was given $250,000 worth of shares for ‘consulting services’ and this guy is actually now the chairman and owns nearly 4% of the company, from what I can gather he actually bought the shares which is in stark contrast to everyone else. I can’t be sure, a lot of filings to trawl through. If anyone knows please let me know as it’s pretty bizarre that anyone with any sense whatsoever would put a dime into this trainwreck but it looks like he has a history of selling companies to private equity.
A company called ‘Investment Research Group’ was given $80,000 worth of shares in exchange for consulting services. Guess who is the director and 80% owner of Investment Research Group? Brent King, one of the Greenfern Directors.

Next we have John Hussey stepping back up to receive anotherl quarter million ($260,000) in share based payments and not to be left out Casey grabbed $230,000. So just to be clear for those that aren’t familiar with these things, these two gave themselves a combined $490,000 worth of the company - the company at this stage being a shell that crowdfunders are pouring their money into. So in a slightly roundabout way they took a $490,000 share of the money put in by the ‘investors’.
They also decided to ‘pay a debt on behalf of a shareholder’ And then incurred legal fees in order to recover this money. All of which they assure us was recovered including the legal fees. I have never ever heard of any company in the world paying a debt for a shareholder. I would not find it difficult to believe that this ‘shareholder’ was in fact one of their mates.

At the end of the section disclosing all of this astounding and disgraceful conduct we are told that ‘All transactions with related parties were at arms length’
All of this stuff was disclosed in the 2021 financial statements and so only catches the cash going out to the insiders up until March 31 2021 which is a snapshot. From the NZX listing document 31st October 2021 we can get some more detail.

The efforts so far to rip off unsuspecting Crowdfunding investors are just warming up at this point, let’s have a look at the plans from 2021 forward.

The Full Feathering of the Nest

In July 2021 Crooked Casey was lucky enough to be considered by himself for the Managing Directors job for the 5 years following the listing at the bargain basement salary of $155,000 per year that is fixed for the first 3 years and then will no doubt be looking for a lot lot more. Now check out the conditions he’s attached. Greenfern can sack him, but to do so they have to pay him $310,000 if this occurs within the first 3 years of his term and after the three years he’e entitled himself to get paid right through until the end of the 5 years no matter what. These conditions also apply if he is made redundant or if Greenfern is sold.

Now as luck would have it Mr John Hussey was also given a job at the same time as ‘Head of Growth’ (I have no idea if the pun was intended), another great bargain for $155,000 and carries the same provisions as above for Casey.

Well these two are sorted no matter what happens, but don’t worry their nest is not fully feathered yet!

The ‘Shadow Share Scheme’ another Million dollar hussle. Yes don’t worry it’s just as dodgy as it sounds, so the insiders had built in provisions to be able to grab more of the pie in the event of the company being listed or sold. Upon the listing being confirmed they got a further $933,500 worth of shares. John Hussey got $453,700 worth, Andrew Jeffery got $220,000 worth, Crooked Casey $148,800 and a few others some smaller amounts. Again to be clear the only thing this company has is the cash put in by the crowdfunding investors and then the ‘assets’ bought with that cash and now the insiders have taken another near $1 million worth.
Let’s take a look at the total amount of cash put into this ‘company’ up until 31 March 2022 and what has been claimed or taken out by the insiders.

Money In

2019 - $1,963,204 From collision Crowdfunding. Only $1,534,626 actually made it through to the company. $428,527 or 21.8% of the money was already gone. $200,000 of that was gone after being taken in by Greenfern.
2020 - $245,903 from investors with $17,391 in costs for issuing those shares or 7% of the total raised.
2021 - Crowdfunding raise $2,905,337 with $300,000 going out as associated costs.
2021 - Wholesale raise $2,155,400

So we have a cumulative total of $7,269,844 being put in by investors. Only $6,109,406 was left for the company.
Of the $6,109,406leftover after the costs of getting the money and listing on the NZX let's tally up how much the insiders have got their hands on so far.
If we look at the net assets from 31 March 2022 of $3,564,096 The insiders own collectively around 47% of the company having put nothing in themselves, this amounts to $1,675,000

Looking at cash based related party transactions there was $1,420,037 up to March 31st 2021. In 2022 there was $935,044 going out in cash to related parties and directors fees of $120,000. Casey and Hussey salaires amount to a further $310,000.
Another $1,1604,38 went to people associated with raising the money and listing on the NZX - A huge portion of the $414,000 that it cost for the NZX listing went to ‘The Investment research Group’ owned by Greenfern Director Brent King.
So as of 31 March 2022 the insiders have got their hands on $4,460,081 of the original $7.2 million put in and another ≅ 1.2 million went out in fees for raising the money.

Not bad going and it’s worth noting that *some* of this money will be legitimate business transactions, it’s up to you to decide how much.
Now that we’re up to the end of the 2022 financial year it’s worth comparing the revenue generated against what was forecast in the crowdfunding document of August of 2020. The forecast was $7,918,513, remember this is only 7 Months before the year being forecast began.
The actual revenue? Well… $213,354. So they only missed the forecast they made a mere 7 Months before the year began by 3,611%. Or another way to look at it would be that 2022 revenues were 97.3% below forecast.

The real swindle

It’s pretty obvious what comes next isn’t it. More ‘investors' money is needed! This is where the real scandal begins and what led me to get involved. After losing $2 million in 2022 and taking money out of the company for themselves as described above, they desperately needed more cash.

On the 7th September 2022 Greenfern announced on the NZX that they intended to open a ‘wholesale’ offer through the Equities platform and other private avenues. They were after $1.2 million and offered the shares at a 30% discount to the average share price over the last 30 days. Sounds like a deal. The Wholesale investors are supposed to be more sophisticated investors and high net worth individuals. Of the $1.2 million Greenfern were after, they raised a total of $64,374 or only 5.3% of the total they asked for, these wholesale investors paid 11.5c per share. The game was up, or at least to anyone who had half a clue about how this stuff works.
Fast running out of money, they turned to their own shareholders and through the NZX began a ‘rights issue’ to raise $5 million dollars. On the 30th September 2022 they issued the notice of the rights issue, the share price being around 12.5c at that time. The rights issue allowed any existing shareholder to purchase further shares for a price of 8 cents each or a discount of around 35% to what they were trading for on the day of the announcement and a 48% discount to the prior 30 day average share price as of the 27th September.

They wanted 5 million and they got $757,000 instead. They were rejected by their own shareholders for shares at a 35% discount to market prices.
So they were rejected by Wholesale investors, rejected by their own shareholders, and knowing this would be the case, they then went to Sharesies to target the most vulnerable and unsophisticated of retail investors.

Sharesies sent out the offer through their app to all of their clients, by email and pushed it through their website and Facebook page. They were paid a fee for distributing the offer through their platform and I imagine in addition they would have been paid a fee for every share sold in the issue as well. Now when you go to their page that was dedicated to the offer you get a ‘page not found’ message that includes ‘Aw, Gutted, We slipped up, thanks for your patience while we suss it out’ Probably the most accurate statement they have made regarding this abomination.

So through Sharesies they managed to get their hands on an additional $984,000 all of which was from ‘shortfall’ or in other words, not from their existing shareholders.
All told this is another $1.8 million raised to provide more feathers for their own nests but they are short by $3.2 million.
At this point the Chairman of the Board resigns - Brent King. Smart move. Remember he’s the owner of The Investment Research Group that has taken a lot of cash out of Greenfern as detailed above.

With this fresh injection of money in late 2022, the filings at the beginning of 2023 detail how the insiders start issuing themselves more shares which is in essence grabbing more of the money that the investors have just put in.

Also worth noting that in the Rights offer documentation they state that some of the cash is to be used in fitting out their ‘Phase 2’ plant. The one that was supposed to be completed by 31st Dec 2022.

So by the end of 2022 all they have achieved is massive losses, even bigger revenue misses and all they own is a decrepit old hydro station and a very small R&D phase one growing facility. As detailed above they have achieved far greater things for themselves.

As of the last update on 30th September 2022 they have lost a further $850,000 and the total net assets within the company are now $2,630,000. As there are around 110,000,000 shares now, that’s 2.4 cents per share. But remember that’s how they value the ‘assets’ in the company, the reality is they are worth far less.
This company is going bust, it’s just a matter of when. We’ve already seen the reluctance of ‘investors’ to stump up more cash and with the share price declining the game is up. The lower the share price goes the less money they can raise and they are a long way short already. The money is still flying out and nothing is coming in. At this stage there is usually some kind of announcement that will try to boost the shares and a final ditch effort to raise more money before taking all they can out before filing for bankruptcy.

[SailorRob]

Sorry if editing wasn't great, hard to paste in from original document and the some links wont work, I can sort them out if people want them.

[shareman]

It's a conjob

[ralph]

Sorry if editing wasn't great, hard to paste in from original document and the some links wont work, I can sort them out if people want them.

Bloody well researched Sailor Rob