11 Jun GGSM – Some interesting connections
There are literally dozens of shells out there that are set up following a common P&D pattern.
-Shell goes public with forward looking business operations
-Insiders hold all of the outstanding shares
-Seed shareholders or foreign debtors are used to fund the shell and given shares for next to nothing in exchange for their funds
-Change of control
-Change of business operations usually having more forward looking stuff that will never amount to anything real
-Forward split to increase the insiders share ownership
Then comes the paid promotions.
GGSM is one of those shells that is set up following that basic P&D pattern.
GGSM was set up as a Nevada business entity by the name of Global GSM Solutions Inc on March 5, 2008 with 75,000,000 authorized shares. The original CEO was Gennady Fedosov. The attorney that helped take GSM Solutions Inc public was Cane Clark LLP. On April 7, 2010 an S-1 was filed. Gennady Fedosov held all of the officer positions and owned 4,000,000 shares that he received for $4,000 cash ($.001/share) and Anna Ivashenko was listed as a director holding 2,000,000 shares that she received for $2,000 cash. As part of their forward looking business operations to help the shell go public, GGSM had a signed agreement with a Polish company called XTek run by Rafal Lewandowski to help manufacture, test, ship, and sell their wireless devices.
On August 5, 2010, after several attempts, the S-1 filing was finally made effective. The company immediately issued 1,350,000 shares at $0.02 per share for total proceeds $27,000 to 25 unnamed private seed shareholders.
On March 25, 2011, Anna Ivashenko stepped down and Geoffrey Dart replaced her on the Board of Directors. Seven days later on April 1, 2011, Gennady Fedosov stepped down also and Geoffrey Dart replaced him becoming the sole officer/director of the company.
On April 11, 2012 after the company's original forward looking business operations amounted to nothing, the company changed its business operations to mining. The company did an authorized share increase from 75,000,000 to 400,000,000, a name change to "Gold and Gemstone Mining Inc", and approved a 45:1 forward split. The changes took place on April 30, 2012.
Following the 45:1 forward split, Gennady Fedosov had 180,000,000 shares that only cost him $4,000 ($.00002/share), Anna Ivashenko had 90,000,000 shares that only cost her $2,000 ($.00002/share), and the 25 seed shareholders now had 60,750,000 shares that cost them $27,000 ($.0004/share).
On May 4, 2012, Gold and GemStone Mining Inc. entered into a collaboration agreement with Ridgeback Mining (Sierra Leone) Limited regarding a joint venture on three prospective diamond and gold properties in Sierra Leone. The agreement required GGSM to pay $1,500,000 per concession for an aggregate total of $4,500,000 within the first twelve months of operation. If GGSM does not invest the required $1,500,000 per concession within the first twelve months, each concession for which the requirement was not fulfilled will be returned to the ownership of RMSL
As part of the agreement, Geoffrey Dart resigned, Gennady Fedosov and Anna Ivashenko agreed the cancellation of 180,000,000 of their share and the transfer of another 88,000,000 to the new management which consists of Charmaine King (President, CEO, CFO, Secretary, Treasurer and a director) - 65,387,500 shares, Timothy Cocker (Chief Marketing Officer and a member of our board of directors) - 15,075,000 shares, and Tom Tucker (Vice President of African Mining Operations as well as a member of our board of directors) - 7,537,500 shares.
This brings the current outstanding share count to 150,750,000:
60,750,000 shares held by seed shareholders which can be sold
2,000,000 shares held by Fedosov and Ivashenko which can be sold
88,000,000 shares held by current management which shoudl be restricted
GGSM will obviously probably never come up with the $4,500,000 and the mining concessions will never realize any productions or revenues for the GGSM shell, but it makes for a great story line and great future press and promo coverage.
Some interesting connections
A reverse IP check on the GGSM website bring some interesting results. The following website all link back to the GGSM website through a reverse IP check including 5 other publicly traded companies, two of which were past BestDamnPennyStocks (BDPS) plays:
bioflamex.com (BFLX - former BDPS play)
powrtec.com (POWT - former BDPS play)
ridgebackmining.com (linked to GGSM)
genovabio.com (GVBP - suspended stock formerly associated with Brian Cook and Diane Dalmy)
The connections to past BDPS plays and the set up of the shell are too much to ignore. GGSM should be on people's watch list for a possible future paid promotion.