03 Sep Greenway Technology (GWYT) – a ticker with insiders like this should not be ignored or forgotten
I happened upon Greenway Technology (GWYT) this weekend while doing research on another ticker. GWYT has barely traded over the past 4 years since becoming Greenway Technology in September of 2008. Since the name change 4 years ago only 9,156 share have traded, but it should be noted that more than half of that volume (4,900) occurred over the past 6 trading days.
Those 4,900 shares traded knocked the price down from $9.50/share to $2.00 share. Volume this low wouldn't catch the attention of too many people, but the way the price is being hacked down could be construed by some as somebody preparing the ticker for a future paid promotion.
Some basic information about Greenway Technology (GWYT)
The CEO of GWYT is Kevin Holbert
The legal counsel for GWYT is Jehu Hand
A major shareholder of GWYT is Benjamin Hoskins (former CEO)
GWYT is a Nevada business entity - see here.
Authorized shares 240,000,000 (just increased on August 6, 2012 from 100,000,000)
Outstanding share count - 177,265,802 as of August 16, 2012 (increased by 150,000,000 from 20,265,802 since 6/30/12)
Float - 27,726,802 as of August 16, 2012 (increased by 27,635,100 from 91,702 since 6/30/12)
Some background on GWYT
On May 1, 2008, Benjamin Hoskins incorporated an entity in Nevada called Greenway Technology. He then merged Greenway Energy (which was a publicly traded under the name Targetviewz Inc (TGVZ)) into Greenway Technology. The name of the publicly traded shell was changed to Greenway Technology and it was given a new trading symbol - GWYT.
Prior to the name/symbol change, GWYT had effected a 1:200 reverse split wiping out the previous shareholder base and knocking the outstanding share count down to 91,702 outstanding shares.
Following the reverse split, 20,000,000 common shares were issued. 10,000,000 of those shares were listed as having been issued in exchange for a $25,000 debt Note that came with the shell. The other 10,000,000 shares were issued in exchange for expenses accrued from the reorganization of the shell. 9,928,367 shares ended up in possession of Benjamin Hoskins held under the name of Oxford Capital LLC. We aren't told who got the other 10,071,633 shares, but since only 9,156 shares have traded since that time the original owners still have them waiting to sell them. Benjamin Hoskins was also granted 5,000,000 preferred shares which could be converted into 50,000,000 common shares.
On June 20, 2008, GWYT borrowed $230,000 from JK Advisers. The Note was due on March 31, 2009 and collected interest at 25%. As of June 30, 2012, that Note had not been paid back yet and had accumulated over $231,000 in interest.
Between June 30, 2008 and December 30, 2009, 174,100 shares were issued in private placement offerings.
In February of 2009, GWYT signed an agreement with Refine Systems LLC (an entity owned by Benjamin Hoskins) which was allegedly the licensor of some oil refinery technology. Refine Systems LLC was a brand new entity at that time just created in the state of Nevada that has since been revoked.
The dead years
Following the Refine Systems LLC agreement, GWYT booked its Technology License as a $250,000 asset and its plan to use the Technology as a $100,000 asset, but never managed to book any revenues. The Technology was apparently worthless or GWYT lacked the resources or initiative to use it.
GWYT did no filings between July 2009 and July 2012. Just the fact that in July of 2012, somebody decided to make GWYT active again tells us that something is in the works and people need to pay attention.
In July of 2012, GWYT came back to life by filing an annual report with the unregulated OTC. The report still showed Jehu Hand as the company's legal counsel and the share count had remained unchanged, but some changes had been made with the officer positions.
Kevin Holbert had taken over as the new CEO of the shell in June of 2012. Prior to his new role as CEO, Kevin had been the food&beverage manager at a local golf club called the Trump National Golf Club in Colts Neck, New Jersey. Perhaps that is where Jehu Hand and Benjamin Hoskins met Mr. Holbert.
The 5,000,000 preferred shares convertible into 50,000,000 common shares were passed from Benjamin Hoskins to Kevin Holbert, but Benjamin Hoskins maintained possession of his 9,928,367 common shares.
During the month of August, the authorized share count was raised to 240,000,000. 150,000,000 new shares were issued, and the float grew by 27,635,100 shares.
Some background on the insiders
GWYT will not be Jehu Hand and Benjamin Hoskins first time teaming up. Benjamin Hoskins was a seed shareholder in a company run by Jehu Hand and Learned Jeremiah Hand called New Millennium Products.
But what puts Jehu Hand and Benjamin Hoskins on the map is when they worked together along with Chad Smanjak, Norman Meier, Jordan Shapiro, Marc Levy, and Len Demelt on a pump&dump mailer campaign with Wave Uranium (WAVE) - now known as FBC Holding Inc (FBCD).
Read the documents available at this post I once wrote on the IHUB for more details. It explains how Jehu Hand and Norman Meier allegedly funneled borrow money to purchase the Wave Uranium shell then masterminded a pump&dump campaign that involved recently arrest, Chad Smanjak.
The following is a copy of an email sent from Chad Smanjak to Benjamin Hoskins with a cc to Jehu Hand discussing strategy for the paid promotion.
That post also discusses some of the previous connections between Jehu Hand and the players involved in the Wave Uranium pump&dump.
This post goes even deeper into the past of Jehu Hand and links him to several entities involved in lending money to the Wave Uranium shell. One of those entities, JK Advisers, also shows up in the GWYT filings.
JK Advisers Hedge Fund LLC and JK Advisers LLC are a Nevada business entities controlled by Jehu Hand
JK Advisors loaned Greenway Technology (GWYT) $230,000 on June 20, 2008. That loan collects interest at 25%. As of June 30, 2012, that loan had accrued $231,575 in interest. So GWYT owes Jehu Hand $461,575. Maybe some of that loan finally got converted into free trading shares explaining why the float has grown by 27,635,100 since June 30, 2012. Since the Note is secured by the 5,000,000 preferred shares that means that GWYT is actually controlled by its legal counsel, Jehu Hand. Maybe Hand collected on those 5,000,000 preferred shares and has started converting them?
To make matters worse, could the Benjamin Hoskins who is a major shareholder in GWYT through his entity Oxford Capital LLC be the same Benjamin Hoskins named in this FTC litigation as the control person of Oxford Debt Holdings LLC, Dream Financial, Oxford Financial LLC, Sell IT Visions LLC, and Global Finance Group LLC? Read more here.
GWYT is a shell controlled by Benjamin Hoskins and Jehu Hand who have teamed up together in the past to help run a penny stock pump&dump. Both have very colorful histories in the penny stock world. Recently after nearly 4 years of laying dormant, GWYT has come back to life positioning itself for what looks to be a future paid promotion which could be just around the corner. 27,635,100 new free trading shares have recently shown up in the float. 150,000,000 new shares have been issued all together since June 30, 2012. Today I am adding GWYT to our list of penny stocks to watch for a future paid promotion. I think before any promotion kicks off on this one the price will have to come down well under $1.00/share which means there will probably be a little bit more bid whacking on Tuesday.