28 May RARS – The APS Play that left APS behind
Rarus Technology Inc (RARS) was all set up from day one to be an AwesomePennyStocks (APS) play. It was in many ways a mirror to North Springs Resources (NSRS).
Both shells were set up as Nevada business entities
Both shells did S-1 filing to go public within days of each other
Carrillo, Huettel & Zouvas, LLP did legal work for both shells
Carrillo, Huettel & Zouvas, LLP has been the attorney for several APS shells in the past including SNPK and HDSI
The same attorney later replaced Carrillo, Huettel & Zouvas LLP with both shells
Parsons, Burnett, Bjordahl, Hume, LLP
Both shells borrowed money from Panamanian entities
Both shells started out with mineral property agreements made with Mountain Gold Exploration, LLC (Thomas Callicrate and Lane Griffin)
A similar change in control took place with both shells after the S-1 filings were made effective
Harry Lappa (GBEN, SUNB, EDVP, BBRE, NTRO) acquired control of the NSRS shell (2,500,000 shares) from Danil Shpeyzer for $306,196.34 on April 12, 2011 (5 months and 22 days after the S-1 was made effective)
Manfred Ruf acquired control of the RARS shell (12,500,000 shares) from Kenneth J. Yonika for $310,000.00 on May 24, 2011 (5 months and 20 days after the S-1 was made effective)
Both shells did a name change, authorized share increase, and forward split
NSRS became North Springs Resources on June 21, 2011 then raised its authorized share count to 400,000,000 and did a 50:1 forward split on July 7, 2011 followed by another authorized share increase to 750,000,00 and a 2:1 forward split on October 31, 2011
RARS became Rarus Minerals Inc on June 24, 2011 then raised its authorized share increase to 750,000,000 common shares and did a 50:1 forward split on July 8, 2011. Later Rarus Minerals Inc would change its name again to its current name - Rarus Technologies Inc.
On December 27, 2011, NSRS became an AwesomePennyStock promotion.
NSRS went from relatively no volume before December 27, 2011 to 97,126,736 shares traded on December 27, 2011
The share price rose from $.21/share on December 27, 2011 to a peak of $1.72/share on February 7, 2012. Shortly after the stock peaked the major dumping occurred and the price crashed down below where it started. NSRS now trades at $.038/share. For people that played the promotion wisely it was a great money making opportunity. But for many others that didn't fully understand that NSRS was a pump and dump or knew, but didn't understand the right time to get out, it caused major losses.
RARS never became an AwesomePennyStock promotion despite obviously being set up pretty much exactly like NSRS.
The big question is why not?
I think it was because RARS had already been exposed. Early on during the NSRS promotion I made several posts on the IHUB showing the connections between RARS and NSRS. I think the early exposure made RARS too risky to promote for APS.
RARS was still set up for insider enrichment. RARS has anonymous insiders set up to receive lots of RARS shares using an anonymous Panamanian business entity. Those insiders couldn't let those shares go to waste. Insiders probably got their shares for fractions of a cent and they were guaranteed to make money no matter how things played out. No money can be made unless those shares are sold into the market so instead of using APS to run the promotion, the RARS insiders used some second rate promoters and on May 9, 2012, the RARS pump&dump went into full swing.
On May 9, 2012, using those second rate promoters plus the speculation that RARS would become an APS play, the volume jumped up from relatively nothing to 54,630,395. With some help from WDCO (APS linked MM) RARS went from $.28/share to $.59/share.
The very same day that the paid promotions started on RARS, the company put on an 8K for an agreement to purchase group of Zngle websites that RARS will never have the money to afford. ThinkCorp AG is represented by tax haven guru, Christoph Langenauer.
The pump was short lived though and the RARS share price quickly declined after just one day of decent gains. RARS now trades at $.066/share. Very few people made money on RARS.
There are several shells I have been able to identify as having links to past APS plays and past insiders involved with APS plays. The basic pattern involves a few easy to identify steps:
-Nevada Business entity
-The involvement of certain attorneys
-Nominal business operations
-Links to former APS plays
-Panamanian entities and/or seed shareholders set up for future enrichment
-Change in control
Part of what I will do with this blog is to try to identify some of those shells before the promotions even begin.