03 Apr Advento Inc (ADTO) – stock research report – soon to be Joymain International Development Group Inc – now JIDG
Last week Advento Inc (ADTO) filed an 8K to do a 300:1 forward split and a name change to Joymain International Development Group Inc. Advento Inc has yet to start trading so the forward split is obviously being done to increase the free trading stock held by the insiders of the stock.
The 300:1 forward split will give the seed shareholders 154,500,000 free trading shares of stock. This is the huge type of float that has the potential to turn into a future APS type of promotion or the potential to turn into an ugly dilution scam that just dumps without any high priced promotions because the shares were so cheap for the insiders to buy.
With the adjusted price because of the forward split, seed shareholders will now own stock that only cost them $.000167/share.
To get a little better idea which type of ticker ADTO might turn into let's take a closer look at the short history of the shell and its insiders.
Advento Inc was set up as a Nevada business entity on August 4, 2010 with Liang Wei Wang listed as the sole officer/director of the entity.
Liang Wei Wang is a 54 year old grocery store owner from China. He had no previous experience with any publicly traded entities.
The business plan for Advento Inc was to become a distributor for shower cabinets. The entity would operate out of China at 8 Jiang gang Qu, Ste 402 Hangzhou, China. To help get approval from the SEC, a sales contract was signed between Advento Inc and Hangzhou Yongsheng Holdings Co Ltd (Kun Huang) for Advento Inc to acquire $300,000 worth of shower cabinets from Hangzhou Yongsheng Holdings Co for resale.
Of course to make the sales contract work, Advento Inc would first have to raise $300,000.
On May 31, 2011, an S-1 was filed to take Advento Inc public.
At this point in time, Liang Wei Wang owned all 2,500,000 outstanding shares which he received for $2,500 ($.001/share).
Advento Inc had $2,495 in cash and $0 in revenues.
The attorney helping with the S-1 filing was David Loev of the Loev Law Firm PC. Loev is on our list of attorneys to follow for a future paid promotion.
The accountant helping with the S-1 filing was Ronald S Chadwick, PC.
Sifting through the SEC comments for the S-1, I learned that a website existed at advento.cn which was a Chinese company also called Advento Inc that also sold Shower Cabinets. See the only (partially) archived version of the site here. In a response letter back to the SEC, Advento Inc said they were not affiliated in any way with the Advento Inc that used to use the website advento.cn.
Advento Inc (ADTO) instead registered a domain at advento.biz. The advento.biz website was never built and since that time the domain registration has expired.
When the initial S-1 filing received some difficult comments from the SEC, Advento Inc came back with an additional sales agreement with a Russian entity called Galeon Co Ltd (Balashov Andrey Alexandrovich). Advento Inc agreed to sell $150,000 worth of shower cabinets to Galeon Co Ltd.
The S-1 filing was approved on December 5, 2011.
After going public
During April of 2012, Advento Inc (ADTO) sold 515,000 shares to a group of private seed shareholders for $05/share raising $25,750.
This total was far short of what ADTO needed to execute its sales agreements. The company only managed to acquire $916 worth of "sample shower cabinets" and that is as far as the company ever managed to get with its forward looking business operations.
As of the last 10Q for the period ending January 31, 2013, ADTO was down to just $4,747 in cash. Probably just enough to make it through April before all of the cash will be gone.
Change of Control
On March 12, 2013, Xijian Zhou acquired all 2,500,000 shares from Liang Wei Wang for $306,680.
Liang Wei Wang resigned from all of his positions and Xijian Zhou assigned Suqun Lin as the new sole officer/director for Advento Inc (ADTO).
During the last 2 years, Suqun Lin has been the Sr. Operating Officer, China District, of Nanjing Joymain Science and Technology Development Co., Ltd. a company that allegedly specializes in research and development, production and marking of high-tech health care products. Prior to that Mr. Lin spent some time working in marketing and public relations.
The first act by Xijian Zhou after taking control of the ADTO shell was to file for a 300:1 forward split. To make room for the new shares, the authorized share count will be raised to 1,500,000,000.
Once the forward split gets approved and effected, the new share count will look as follows:
Authorized - 1,500,000,000 shares
Outstanding - 904,500,000 shares
Xijian Zhou - 750,000,000 shares (restricted) - costing only $.0004/share
Seed Shareholders - 154,500,000 shares (free trading) - costing only $.000167/share
The mysterious filing author
In another research report for UMAX that I just finished, I dug into a mysterious filing author that uses the name "ac". The following are all of the tickers that ended up having files authored by "ac". At this point I am still uncertain what exactly to think about this "ac" author or how it relates to the future of each of these entities, but more definite patterns may start to form as these entities continue to move forward in time.
Fermo Group Inc (FRMG) -----> Taken public by Carrillo Huettel (Kevin Polis) with a German nominee officer with 3,000,000 shares - became a Seacoast Advisors ticker
Sealand Natural Resources Inc (SLNR) ----> Taken public by Carrillo Huettel with a Ecuadorian nominee CEO with 2,500,000 shares - became a Seacoast Advisors ticker
Umax Group Corp (UMAX) -----> Taken public by Carrillo Huettel with a Polish nominee CEO
USA InvestCo Holdings Inc (USAV) ----> Taken public by Cane Clark LLP with a Montreal based nominee CEO with 4,500,000 shares
Yanex Group Inc (YNXG) -----> Taken public by Stepp Law Corp with a German nominee officer with 2,500,000 shares
Advento Inc (ADTO) ----> Taken public by The Loev Law Group with a Chinese nominee CEO with 2,500,000 shares
Avalanche International Corp (AVLP) ------> Taken public by Stepp Law Corp with a Montreal based nominee CEO with 2,000,000 shares
Gilax Corp (no trading symbol yet) ---> Taken public by Luke Zouvas (Kevin Polis) with a Russian nominee CEO with 2,500,000 shares
Aviana Corp (no trading symbol yet) ----> Taken public by W Scott Lawler with a Polish nominee CEO with 3,000,000 shares
What to expect next
With the recent change of control I expect that we will soon see a change in business operations. Because of the history of the newly assigned CEO, Suqun Lin, ADTO may end up entering the medical or healthcare product industry. We already know the name of then entity will change to Joymain International Development Group Inc.
A symbol change will probably follow the future 300:1 forward split.
After all of that is done, we will be watching for the Advento Inc shell to become the subject of some sort of paid promotion activity. Today I am adding Advento Inc to our list of ticker to watch for a future paid promotion.