09 Jul The Alkaline Water Company Inc (WTER) – updated research report
Today, The Alkaline Water Company Inc (WTER) had its first ever day of real volume opening at $.35/share and closing out the day up 27% at $.445/share.
We have had WTER on our list of stock to watch for a future paid promotion since May 31, 2013. The future paid promotion could be getting very close now. The following report will be a review of past research from May 31, 2013 along with some updates.
It has been a while since I have come across a shell with as many big paid promotion red flags as The Alkaline Water Comp Inc (WTER). Some of the biggest red flags include:
Kevin A Polis Esq
Bank Gutenberg AG
Russian Nominee Officers
15:1 Forward Split
Let's take a closer look at the ticker.
The original name for the shell was Global Lines Inc. It was incorporated as a Nevada business entity on June 6, 2011 with Sergejs Belkovs as the CEO, treasurer, and director and Vladislav Novichenko as the secretary.
Sergejs Belkovs was from Estonia where he was a manager at Baltic Lines, a company that owns and operates luxury vehicles providing shuttle services in Tallinn, Estonia.
Before his appointment as secretary, Vladislav Novichenko was working as the manager of Vladiko Export Inc, a car exporting company in Miami that would buy cars at auction then sell and ship them to other locations.
Sergejs Belkovs was issued 4,500,000 shares for $.001/share ($4,500)
Vladislav Novichenko was issued 500,000 shares for $.001/share ($500)
On October 28, 2011, Global Lines Inc filed an S-1 to go public.
The attorney helping with the S-1 filing was Kevin A Polis of Carrillo Huettel LLP. Kevin A Polis and his former mentor, Luis Carrillo both have strong ties to Zurich, Switzerland. Kevin A Polis now works under former Carrillo Huettel partner, Luke Zouvas at the Zouvas Law Goup. Both Carillo Huettel and Zouvas Law sit high atop our list of attorneys to follow for a future paid promotion.
The accountant helping with the S-1 filing was Sadler, Gibb & Associates LLC
The business plan for Global Lines Inc was to offer chauffeuring and transportation services to residents within its local Florida market. Global Lines Inc had some kind of sub-contracting arrangement with Super Limousines of Miami which allowed them to leave a $4000 deposit for the use of one of their vehicles. Super Limousines is no longer in business. Their website is dead, but their facebook page is still available here.
Global Lines Inc said that they would required $27,000 to initiate their business plan (which includes purchasing a couple of vehicles of their own). To earn the money they would be offering shares for sale to raise the money.
The S-1 filing was approved on February 1, 2012.
After going public, on February 14, 2012, Global Lines Inc sold 2,300,000 shares at $.01/share to some anonymous seed shareholders.
Change of Control
By the end of 2012, Global Lines Inc was out of cash and had yet to make any progress at all with its business operations. The company didn't even make a penny of revenues through its contract with Super Limousines. It was time to put the next stage of this future paid promotion ticker into action.
On March 18, 2013, Stephen Rolls of New Zealand took over as the sole officer director of the Global Lines Inc shell. Mr. Rolls started out as a rugby player, playing professionally for Rotterdam RFC from 1999 to 2002. After his rugby career was over, Mr. Rolls started Apex Plaster and Paint Contractors in 2003. In 2007 Apex Plaster and Paint Contractors was expanded to include Apex Developers.
We aren't told if the 5,000,000 shares previously owned by Sergejs Belkovs and Vladislav Novichenko were sold to Stephen Rolls.
By this point in time, Clark Wilson LLP of Canada took over as the attorney helping with the GAEN filings and corporate changes.
Suspicious Debt Notes
The first thing Stephen Rolls did after taking over was to sign a bunch of Notes/Private placement agreements.
Rolls issued a $150,000 Note and a $25,000 Note, and to Alkaline 84, LLC of Scottsdale, Arizona. The Notes allow Alkaline 84, LLC through Bank Gutenberg AG to convert the debts into common shares at $.40/share. Signing for Alkaline 84, LLC was Bank Gutenberg AG of Zurich, Switzerland.
On May 17, 2013 another $50,000 Note was added to the others Notes. The Note is once again going to Bank Gutenberg AG through Alkaline 84, LLC.
Alkaline 84 LLC was incorporated as an Arizona business entity on June 19, 2012. View the entity here. The managing members of the entity are:
Steven P. Nickolas
Lifewater Industries LLC (Steven P Nickolas) - view entity here
Win Investments LLC (Richard Wright and Stephen Nickolas) - view entity here.
Alkaline Water Corp (Steven P. Nickolas) - view entity information here
Water Enhancement Technologies (W.E.T.) Inc (Richard Wright, Stephen Nickolas, ) - view entity here.
Richard Wright and Steven Nickolas also have a few more "water" entities including Lyte Water LLC, Enhanced Water LLC, Water Engineering Solutions LLC, Veio Water LLC, Hygea World Water Solutions LLC, The Beverage Boys LLC, Enhanced Beverages LLC, and Shur Beverages LLC.
More about Steven Nickolas
It turns out this is not Steven Nickolas' first time getting involved in a penny stock. 4 years ago, Steven Nickolas was named the CEO of Liberty Diversified Holding Inc (LDHG). The ticker is now known as NutriPure Beverages Inc (NBVG). Some of the other officers of LDHG/NBVG included Ronald Touchard, who is well linked to Eric Van Nguyen and Tony Papa, and Wayne Bailey who has been Andrew Coldicutt's right hand man for the past several years. Bailey and Coldicutt worked together in CDOI, WIIM, PWEI, and VLNX. The NBVG shell was promoted by Eric Van Nguyen back in 2009/2010. That's a lot of connections to Awesome Penny Stocks.
NBVG now trades at no bid as nothing but an abused penny stock scam ticker.
NBVG wasn't the only ugly penny stock that Steven Nickolas got involved with. In 2008, Steven Nickolas became the CEO of BioPharmetics Inc (BPMT). The ticker for BioPharmetics Inc is now BPIC. BPIC was another scam company that no longer trades - parked on the grey sheets until it gets revoked. Under Steven Nickolas' control the shell did a 1:45000 reverse split.
Steven Nickolas was also involved in CHFR back in 2004 and as the long time CEO of Northsight Capital Inc (NCAP) from 2008 - 2011.
The insiders that control the free trading GAEN stock found their man. Steven Nickolas' past proves he has no problem working for scammy shells that are used for insider enrichment schemes. The scenario is always the same. Steven Nickolas gets involved, the business operations gets changed to water/beverage industry, the shareholders lose in the end.
Richard (Ricky) Wright
Richard Wright also has a history in penny stocks. He is the CFO of Voda Technologies Inc which is a wholly owned subsidiary of Novus Acquisition and Development Corp (NDEV).
Through Voda Technologies Inc, NDEV has a contract to serve as the product packager for Alkaline84. The same Alkaline84 that is now linked to WTER. See the NDEV annual report (page 13) for more details.
NDEV became a pump&dump from some D list promoters recently.
More about Bank Gutenberg AG
Seeing Bank Gutenberg AG show up was a little surprising to me mainly because Bank Gutenberg AG has been linked to many recent big name paid promotions. Bank Gutenberg AG is a "bank" in Zurich Switzerland whose main purpose appears to be controlling the trading of the free trading stock in major paid promotions. See this link here.
Key names linked to Bank Gutenberg AG include: Edwin Haas, John Anastasious Collias (aka John Kollias), Norman Jeske, Daniel Weinmann, Marc Peter, and Maria Zaffaroni.
Recent stock promotions with solid links to Bank Gutenberg included GNIN and OCTX along with possibly dozens of others. Read more in our OCTX - Complete Ugly Truth research report.
The scheme works as follows:
(i) the Participants set up a foreign corporation (“Blind Corp.”) in BVI or Panama using an anonymous trustee to avoid detection;
(ii) the Participants then cause the Blind Corp. to open an account with Gutenberg in Zurich;
(iii) the Participants obtain control of a U.S. Shell company and create a bogus business plan;
(iv) the Shell Company is structured so that the Participants can obtain control of the public float;
(v) the Participants arrange for large blocks of (“illegally”) free trading unregistered and non- exempt Shares to be issued in the name of the Blind Corp. and delivered to Gutenberg;
(vi) Gutenberg deposits a portion of the Shares into its global custody account with a large U.S. institution;
(vii) Gutenberg deposits a portion of the Shares into Delivery vs. Payment (DVP) accounts with specific market makers;
(viii) Gutenberg places buy orders with a first market maker and sell orders with a second in order to create the appearance of volume and demand for the Shares;
(ix) the Participants bombard investors with misleading and false public information including unfounded and inflated price predictions, bogus research reports using both phone rooms, spam email and stock-hype websites which promise unsupported returns and baseless forecasts and results; and
(x) Gutenberg dumps the Shares at inflated prices during the hype and the Participants receive the proceeds while remaining anonymous using the Blind Corp.’s account at Guttenberg.
The forward split and name change
On March 12, 2013, the same time that Clark Wilson LLP started doing legal work for the Global Line Inc shell, somebody by the name of Zoe Taff of Vancouver reserved the name "The Alkaline Water Comp Inc" with the Nevada SOS. The address used by Zoe Taff (800 885 West Georgia Street) is the address of the Clark Wilson LLP law firm.
On April 18, 2013 a brand new Nevada business entity was incorporated named The Alkaline Water Comp Inc. This brand new business entity was merged into the Global Lines Inc business entity effecting a name change for GAEN to The Alkaline Water Corp Inc.
On May 30, 2013, Global Lines Inc (GAEN) effected a name change to The Alkaline Water Comp Inc along with a 15:1 forward split.
The split makes the share count look as follows:
Authorized - 1,125,000,000 shares
Outstanding - 109,500,000 shares
Restricted - 75,000,000 shares
Free Trading (owned by the seed shareholders) - 34,500,000 shares costing just $.00067/share
Acquisition Agreement Closes
On June 5, 2013, Global Lines Inc (GAEN) officially completed the acquisition of Alkaline Water Company, a company controlled by Steven P. Nickolas and Richard A. Wright. Stephen Rolls resigned and Steven P. Nickolas (Chairman, president, secretary) and Richard A. Wright (VP and treasurer) and became the new officers for GAEN.
The debts issued to Bank Gutenberg AG became 1,887,175 shares shares of GAEN stock.
Sergejs Belkovs (former officer) returned 67,500,000 shares Vladislav Novichenko (former officer) returned 7,500,000 shares.
Alkaline84 became a wholly owned operating subsidiary. Through Alkaline84 (another entity controlled by Nickolas and Wright), GAEN/WTER has a one year agreement with Arizona Bottling Company (Moe Fernandez) to act as the initial co-packer. Branding will be coordinated through 602 Design LLC.
The financials show that Alkaline Water Co come with only $15,510 in revenues during its entire existence.
The new share count now looks as follows:
Total outstanding - 79,387,175 shares
Stephen P. Nicolas - 43,000,000 shares
Seed shareholders - 34,500,000 shares (free trading) costing $.00067/share
Bang Guntenberg AG - 1,887,175 shares
On June 28, 2013, GAEN got its symbol change to WTER.
Today, July 8, 2013, WTER began publicly trading for the first time.
The WTER website can be found here.
WTER is now the parent company of Alkaline Water Company which is the parent company of Alkaline84 LLC. Through Alkaline Water Company and Alkaline84 LLC, WTER is a developmental stage company engaged in the sales of alkaline water. To date WTER has not recognized any significant revenues.
What to expect next
With the 34,500,000 free trading shares, new officers with long histories in dirty penny stocks, and all the debt Notes set up to run shares through Bank Gutenberg AG, I'm sure we will see some kind of paid promotion for The Alkaline Water Comp Inc. Most likely it will be some kind of newsletter/hard mailer type of promotional campaign. With today's volume, that promotion could be coming soon. The current price of $.445/share seems like a fairly good price based on the history of the ticker, the share structure, and the type of promotion it will probably see. Obviously one of two things could happen from here. The promotion might still be far away and the share price could drop on limited volume while WTER sits in waiting or volume could continue and the price could either slowly climb as a promotion draws near. As always when dealing with a pre promo ticker, there is a risk of a possibly shake out if there is too much pre promo volume or attention.
For now we are keeping The Alkaline Water Comp Inc (WTER) on our list of tickers to watch for a future paid promotion and watching for any signs that an official paid promotion has begun.