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Green Innovations Ltd (GNIN) – updated research report

11 Jan Green Innovations Ltd (GNIN) – updated research report

 

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Yesterday, Green Innovations Ltd (GNIN) had some suspicious trade activity that has put it on immediate attention by our team.  We had already put GNIN on our watch list for a future paid promotion way back on September 3, 2012.  See our original GNIN research report here.

The following is a re-post of that information followed by further research about what has happened to the GNIN shells since September 3, 2012 and what to expect moving forward:

 

Breakdown of the history of Winecom Inc

Winecom Inc looks like it was set up for a future pump&dump from day one.

Winecom Inc was registered in Nevada on July 1, 2008.

On June 1, 2010 Winecom Inc decided to file an S-1 to go public.

The legal counsel used to help was MacDonald Tuskey more specifically, Konrad Malik.  MacDonald Tuskey can be linked to LEXG, PRTN, BGBR, JAMN, HHWW, PEPR, AENY, LTUM, and dozens of other penny stock pump&dumps.  Konrad Malik specifically can be linked to PRTN.  Recently I found out that William MacDonald had worked with Clark Wilson LLP from 1998 - 2008 before joining with Gerald Tuskey to form MacDonald Tuskey in 2008.

Konrad Malik was also part of Bacchus Law Corp which is part of the Malone/Bailey group. He doesn’t show up on the Bacchus site any longer, but many of these tickers he has been connected to are from his work at Bacchus.

Both officers for Winecom Inc were from Israel and Winecom Inc used an Israeli address.

Mordechay David, the President and Director, allegedly brought with him more than 15 years of experience in the wine industry working at Binyamina Winery, Israel’s fourth largest wine producer.

Shamir Benita, the Treasurer, Secretary, and Director, worked in the public education sector.

David and Benita received 2,000,000 share each for $10,000 (total proceeds $20,000) amounting to the entire outstanding share count at the time Winecom Inc went public.

Business Plan

The business plan for Winecom Inc was actually a little silly.  David and Benita used ning.com to set up a social website called winecom where wine enthusiasts could go to share wine experiences and information.  Setting up a ning.com social site costs as little as $24.95/month.  For people that want to join the winecom social site the cost is free.  The plan allegedly was to create enough interest in the winecom social site that the traffic would eventually prove profitable using google ads placed on the site.  They also hoped to eventually gain enough interest in the free social networking page to be able to sell 3rd party goods through the site.

According to correspondence letter to the SEC, that amazing free social networking site required 10 - 20 hours a week from both officers to maintain and build and almost 2 years of planning before being built.  It probably surprises nobody that that business plan eventually failed.  In reality, in my opinion, it looks like it was meant to fail and the shell was only created as a vehicle for a future pump&dump.

Seed Shareholders

After being granted public trading status on 12/03/10,  1,000,000 shares were sold to 35 unnamed private investors (seed shareholders) for proceeds of $40,000 ($.04/share) during the first 3 months of 2011.

By August of 2012, all the cash raised had been used up, the "website" still had not turned into anything but a skeleton site as you can see here despite all those hours and all the money put into development, and the meant to fail business that impressed the SEC enough to allow WNCM to publicly trade was terminated.

Change of Control

Control of the shell was passed to Bruce Harmon on August 13, 2012.  Mordechay David and Shamir Benita were done with their roles as nominee officers and resigned from their officer positions.  Both remained as Directors of the company.  Bruce Harmon took over as the sole officer and became the 3rd director of the shell.

Background on Bruce Harmon

Bruce Harmon has a lot of experience in penny stocks specifically penny stocks focused on Alternative Energy.

Starting in 2005 he was an officer for Alternative Construction Company Inc (ACCY) which later had its name changed to Alternative Construction Technologies Inc (ACCY).  ACCY was revoked by the SEC on January 11, 2011 which followed some pretty messy litigation proceedings in which ACCY lost a bunch of "assets".

Starting in 2007, Bruce Harmon was an officer for Accelerated Building Concepts Corp (ABCC).

In 2008, Bruce Harmon became a Director for Organa Technologies Group Inc (OGNT) which now trades on the grey sheets.

All 3 of those entities - ACCY, ABCC, and OGNT - show up in SEC litigation against Michael R Drogin seen here which was released the same day that the SEC revoked ACCY on January 11, 2011.  Full details of Drogin's involvement in ACCY, ABCC, and OGNT can be found in The SEC Complaint in the matter.

From 2009 - 2011, Harmon served as an officer of Winwheel Bullion Inc (nka VRDT Corp - VRDT).

Harmon has been the CFO and Chairman of eLayaway Inc (ELAY) since 2009.  In the spring of 2010, eLayaway Inc merged into Tedom Capital Inc (TDOM) and did a 4:1 forward split.  The name of the shell was changed to eLayaway Inc (ELAY).  ELAY has fallen from $1.00/share to $.01/share since that time.

On November, 26, 2011, Harmon became the CFO of Omni Ventures Inc (OMVE).  OMVE had been pumped&dumped a few times including 2 times so far during Harmon's time with the company.  The most famous pump&dump happened recently.  Here is some past research on OMVE.

Forward Split and Name Change

Later that same week that Bruce Harmon became the new CEO of WNCM, Harmon filed to change the name of the entity to Green Innovations Ltd.  To coincide with the name change, the company will do a 20:1 forward split.

The new share count will now look like this (following the 20:1 forward split):

Authorized common shares - 150,000,000
Outstanding common shares - 100,000,000
Free Trading shares - 20,000,000 (owned by 35 different seed shareholders at a cost of $.002/share)
Restricted shares - 80,000,000 (Mordechay David and Shamir Benita own 40,000,000 each at a cost of $.00025/share)

Conclusion

The name change should show up at the Nevada SOS any day now.  The D should be added very soon also for the forward split.  After the forward split and name change a symbol change should be soon to follow.  After the symbol change a paid promotion is possible at any time.  It could be days away at that point or it could be months away. There is just no telling, but this is one that should be on people's watch lists.

 

What has happened since our September 3, 2012 report

Since September 3, 2012 a lot has happened with the GNIN shell.  Obviously the shell got its name change to Green Innovations Ltd and symbol change to GNIN as expected.

The business plan for the shell changed from a social media site for wine enthusiasts to a distributor of American Hygienics Corporations 100% tree-free bamboo based Eco-friendly product line.  Some of their main products include:

Toilet Rolls of 100% bamboo pulp
Cosmetic Wipes and Pads of 100% bamboo pulp
Facial Tissue of 100% bamboo pulp
Copy paper, notebooks and office papers of 100% bamboo pulp
Meat platters (bamboo-styrofoam) for ground beef, steaks, etc.
Cosmetic Wipes and Pads of 100% bamboo pulp
Facial Tissue of 100% bamboo pulp
Female Sanitary Pads
Panty Liners

 

According to GNIN the products can be purchased by contacting [email protected].

See the GNIN website for more information.

On the GNIN website, GNIN claims to be the exclusive North American provider and wholesaler of American Hygienics Corp products, but upon a visit to the AHC website it appears to me that anybody can purchase the products for re-sale.

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The new business operations were achieved through the purchase of a Florida business entity entirely owned by Bruce Harmon called Green Hygienics Inc.   A visit to the Florida SOS site shows that Green Hygienics Inc found at this link was only just created as a brand new entity on July 30, 2012 for the mere purpose of being used for the GNIN shell.

The purchase price was the issuance of 49,500,000 shares to Bruce Harmon.   As part of the agreement, the former officers of the GNIN shell, Mordechay David and Shamir Benita, agreed to cancel 79,500,000 of their 80,000,000 shares.  This left the outstanding share count at 70,000,000:

Authorized common shares - 150,000,000
Outstanding common shares - 70,000,000
Free Trading shares - 20,000,000 (owned by 35 different seed shareholders at a cost of $.002/share)
Restricted shares - 500,000 (Mordechay David and Shamir Benita own 250,000 each at a cost of $.00025/share)
Restricted shares - 49,500,000 (Bruce Harmon)

As part of the purchase agreement, Mordechay David and Shamir Benita resigned from their officer positions and Bruce Harmon took over as the CEO, CFO, and Chairman of the GNIN shell.

On October 17, 2012, to help pay for business operations, GNIN executed a convertible promissory note with Coventry Capital for $30,000.  The note bears interest at the rate of 10% per annum which accrues.  The conversion price is equal to 90% of the average of the closing prices of the Company’s common stock for the preceding five trading days.   Conventry Capital has many penny stock clients, but most notably are 2 past Victory Mark picks (MDMC and VUME).

On November 19, 2012, GNIN entered into a stock purchase agreement with a Texas based company controlled by Troy Harrison called Sensational Brands, Inc for the trademark "SENSATIONAL" for use with the marketing of the American Hygienic Corp products being distributed by GNIN.  In exchange for the trademark, Sensational Brands Inc received 500,000 warrants for the purchase of GNIN stock at $.01/share.  Simultaneously to the signing of the agreement, GNIN formed a wholly owned Florida business entity called Sensational Brands Inc (FL) to hold the trademark in name.  Troy Harrison was also hired on as the National Sales Manager for GNIN.

On November 28, 2012, GNIN announced that they had received a purchase order from Vernon Sales Inc for some of the American Hygienic Corp products that GNIN distributes.   Vernon Sales Inc is a huge whole sale distributor located in California that helps grocery stores and dollar stores stock whole sale products.

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Since November 28, 2012, GNIN has put out a few more press releases announcing distribution agreements and purchase orders.

Avanti Distribution - distribution press release

MIAMI, Dec. 4, 2012 /PRNewswire/ -- Green Innovations Ltd. (OTCQB: GNIN) (OTCBB: GNIN) ("Green Innovations" or the "Company") is pleased to announce that its wholly-owned subsidiary, Green Hygienics, Inc. ("Green Hygienics"), has executed an exclusive distribution agreement (the "Agreement") with Avanti Distribution ("Avanti"), a Quebec, Canada based company.  Under terms of the Agreement, Avanti will be the sole distributor of various Green Hygienics 100% tree-free bamboo-based products and traditional non-green products in the Canadian market.

Avanti Distribution - purchase order press release

MIAMI, Dec. 21, 2012 /PRNewswire/ -- Green Innovations Ltd. (OTCQB: GNIN) (OTCBB: GNIN) ("Green Innovations" or the "Company") is pleased to announce that its wholly-owned subsidiary, Green Hygienics, Inc. ("Green Hygienics"), has received an initial wholesale purchase order from Avanti Distribution ("Avanti"), the Company's exclusive Canadian distributor.  The wholesale purchase order for high quality baby wipes originated from one of Canada's largest retailers with well over 500 locations across the country.

Perfetti Sales & Marketing Inc - brokerage agreement press release

MIAMI, Jan. 8, 2013 /PRNewswire/ -- Green Innovations Ltd. (OTCQB: GNIN) (OTCBB: GNIN) ("Green Innovations" or the "Company") is pleased to announce that its wholly-owned subsidiary, Green Hygienics, Inc. ("Green Hygienics"), has executed an exclusive brokerage agreement (the "Agreement") with Perfetti Sales & Marketing, Inc. of Countryside, Illinois.  Under terms of the Agreement, Perfetti Sales & Marketing will exclusively represent various Green Hygienics products in the State of Illinois.

 

Conclusion

To date we have no proof of any actual sales or revenues for GNIN, but I expect that there will be.  Penny stock business operations involving the resale/distribution of products often do achieve some sales, but despite that,  GNIN remains a shell with 20,000,000 free trading shares and a CEO with a history of being involved with shells that get pump&dumped using paid promotions.  Yesterday's trading activity may have been a sign that the paid promotion for GNIN may be near.  Keep a close eye on GNIN moving forward.

 

 

 

 

 

3 Comments
  • alive
    ALiVE
    Posted at 14:42h, 13 January Reply

    GNIN convertible promissory notes include a note Coventry Capital who also did a deal with current Victory Mark promotion, VUME

    http://www.sec.gov/Archives/edgar/data/1491471/000147793212004016/R9.htm

  • nodummy
    nodummy
    Posted at 20:02h, 10 February Reply

    According to news on Friday, Bruce Harmon has converted 45,000,000 of his 49,500,000 shares into preferred shares making the new outstanding share count as of Friday 25,000,000 which still includes 20,000,000 free trading shares owned by the seed shareholders.

    After a nice slow steady climb like we predicted, as of February 9, 2013, GNIN is officially being promoted by affiliates of World Street Fundamentals (same group that promoted PUNL and IDNG) as we expected would happen. **Note we haven’t seen the main Brighton website jump in yet and they may not.

    The start of the promotion may be a sign that Coventry Capital is already about to get some free trading stock towards there convertible Promissory Note. It is definitely a sign that free trading stock will start getting dumped at a greater volume. Especially if the main Brighton sites do join in then GNIN could see a longer run probably some where between PUNL and IDNG.

  • nodummy
    nodummy
    Posted at 22:18h, 17 February Reply

    New mailer hitting for GNIN to go with rumors of main Brighton site jumping in

    http://www.marketresearchworldwide.com/gnin/report.htm

    It will be interesting to see how this new round of awareness does against some of the negative reports now coming out against GNIN

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