OK Afrayem, tell us more GeneMax (OTC BB:GMXX). How are you involved in this one? Does your monther know?
August 2, 2002
Stocklemon reports on GeneMax (OTC BB:GMXX)
When Bad Things Happen To Good People
Shares Outstanding: 15 million
Market Cap: $83 million
Revenues Since Inception: 0
Cash in Bank: $180,000
GeneMax (the “Company”) is a biotechnology company specializing in the discovery and development of immunotherapeutics aimed at the treatment and eradication of cancer, and therapies for infectious diseases, autoimmune disorders and transplant tissue rejection.
Stocklemon fully supports all research done in an effort to fight disease including cancer. We pray that someone will eventually find a cure for this terminal illness. Yet, this has nothing to do with why we at Stocklemon believe that Genemax is a lemon. Similarly, one can have full faith in the prospects of Erbitux from Imclone, yet not want to buy the stock because of the inside dealings of Sam Waksal.
Yet, whereas Sam Waksal was the CEO of Imclone, Stocklemon believes that the problems with Genemax are not from the Chairman or CEO, but rather on the level of stock promotion and the individuals and groups that brought Genemax into their publicly traded hell. Dr. Julia Levy is a
highly respected individual who deserves the utmost respect. Dr. Wilfred Jeffries is similarly a respected researcher who is dedicated to his work. Stocklemon does not have much information on CEO Ron Handford besides him being the former CEO of a mineral company on the Vancouver
Exchange named Ouro Brasil (COU.V).
Investor Communications International, Inc.
investorcomm.com
It appears to Stocklemon that Investor Communications International, Inc. (“ICI”) is the mouthpiece of Genemax. They owned the shell that Genemax merged into and they also serve as an investor relations company for Genemax. Stocklemon is always skeptical when an investor
relations firm has such a large stake in a publicly traded company. According to Genemax’s last filing dated August 19, 2002, Investor Communications International, Inc. owns 554,470 shares of Genemax. Furthermore, Genemax pays ICI a monthly retainer of $10,000.
According these filings,
“On October 9, 2000 the Company entered into a management services agreement with Investor Communications International, Inc. ("ICI"), a significant shareholder, to provide management and investor relations services for the Company. During the period ended June 30, 2002, the Company incurred $248,300 in fees and
$8,782 in interest to ICI. During the period ended June 30, 2002 the Company repaid ICI $322,000 for amounts owing. As of June 30, 2002, $17,356 is owing to ICI for fees, cash advances and interest. The Company subsequently entered into a new consulting
services agreement whereby ICI will provide various corporate services on a month-by-month basis for a fee of $10,000 per month plus expenses.”
This is not the first stock that ICI has been involved with. Over the past two years, Stocklemon can document three other companies (i.e Vega Atlantic, Intergold Corp, and Hadro Resources), which have been involved with ICI.
10kwizard.com
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01&emonth=08&eday=22&eyear=2002&
st=2&arrow=0&from=0&repo=tenk&g=&su
bmit.x=0&submit.y=0
VATL- .04 cents
bigcharts.marketwatch.com
hart/quickchart.asp?symb=vatl&sid=0&o
_symb=vatl&freq=1&time=9
IGCO- .015 cents
bigcharts.marketwatch.com
chart/quickchart.asp?symb=igco&sid=0
&o_symb=igco&freq=1&time=9
HDRS- .16 cents
bigcharts.marketwatch.com
chart/quickchart.asp?symb=igco&sid=0
&o_symb=igco&freq=1&time=9
Hadro Resources
bigcharts.marketwatch.com
chart/quickchart.asp?symb=hdrs&sid=0
&o_symb=hdrs&x=57&y=21
It appears to Stocklemon that the last stock that ICI was involved with was Hadro Resources (OTC:HDRS). We find it interesting how the pattern of GMXX closely follows that of Hadro Resources.Here are some similarities between Hadro Resources and Genemax:
1. They both have the same mailing address on their filings: 435 Martin Street, Suite 2000 Blaine, Washington 98270;
2. Grant Atkins is both the President of Hadro and a director of Genemax. Mr. Atkins gave an interview (please see link below) in which he discusses the naked shorting of Genemax while presiding as the President of Hadro. Oddly enough, Mr. Atkins’ bio in the 10Q of GMXX, fails to mention that he is the CEO of Hadro Resources;
bigcharts.marketwatch.com
articles.asp?guid={C42DAAFF-71C5-4
2F4-A480-3B3FE6F9AF71}&newsid=8
00575700&symb=GMXX&sid=1194061
3. Both Hadro Resources and Genemax got their listing in Frankfurt.
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4. Alexander Cox is a Beneficial Owner of Hadro Resources and Genemax.
10kwizard.com
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How Can We Get Some?
To this point, Genemax has funded itself with the aid of ICI. Please see the quote below which illustrates the type of funding that ICI has provided. And no, what you are about to read is not a misprint.
“In May 2002, the Company completed a private placement of 2,000,000 common shares at a price of $0.125 per share for proceeds of $250,000.” 10kwizard.com
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Enough About the Shorts, What About The Business?
Stocklemon always questions when a company seems to be more concerned about their stock activity than they are about their actual business. In the past three months, Genemax has released a plethora of press releases that deal with the stock activity and the alleged “naked shorting” of their security. Stocklemon suggests that instead of worrying so much about the shorting, Genemax should ask themselves these two important questions:
1. How can we reinstate investor confidence; and
2. How can we return shareholder value.
It is the opinion of Stocklemon that if Genemax can justify its market capitalization and give confidence to the investor that this is not just another pump-n-dump, then maybe the shorts will get away from the stock. Instead of another press release about short sellers, how about a release explaining in detail how to cure cancer with only $185,000 in the bank.
Who Is James Dale Davidson?
James Davidson is one of largest individual shareholder in Genemax with holdings of 1,250,000 shares. According to Genemax’s website, he is also the Chief Financial Officer and Secretary of the Company. It appears to Stocklemon that Mr. Davidson is quite an erudite gentleman with a résumé that would impress even the most harshest critic. He is a publisher, lecturer,
and director of many public and private companies. Stocklemon is of the belief that Mr. Davidson should add to his list of credentials the title of “stock promoter”. Mr. Davidson is the founder of Agora Publishing which publishes reports on investment opportunities.
Mr. Davidson profiled IGSTF in one of his past newsletters. Please click on the link below to see some of the bold claims made by Mr. Davidson. Stocklemon has never read a more aggressive report, that sells the dream more, than the one presented by Mr. Davidson. Stocklemon suggests that the regulators take a look at the statements made by his newsletters.
agora-inc.com
He is currently doing the same promotion with Genemax. According to his report,
“As I write this, we are also offering a couple of absolutely stunning
medical and biotech breakthrough opportunities to investors. One of them
is a breathtaking gene therapy that offers incredible hope for cancer patients.
n animal trials, two-thirds of mice injected with human lung cancer tumors
with the biomass equivalent of basketballs were cured using this treatment.
And this technology has already been hailed in Nature Biotech, one of the
most prestigious journals in the world. GeneMax Pharmaceuticals has already
turned down several offers to go public that management deemed inadequate
given the company's huge potential. It is currently entertaining a new
proposal, however, of enormous potential benefits to Strategic Opportunities
initial investors.”
agora-inc.com
STO/StartTheProfits/
By the way, we at Stocklemon were wondering - just how does a mouse have a tumor the size of a basketball? In the same newsletter, Mr. Davidson discusses another stock that he is involved
in called BEVsystems International, which currently trades at .19 cents. He writes
about BEVsystems International as follows,
“BEVsystems International is poised to skyrocket to similar valuations. I'm not
at liberty to disclose the exciting endorsement agreement and takeout
financing arrangements under way, but I can assure you that our ground
floor investors stand to make exponential profits. And it's just one of several
life-changing and wealth-building options for my select group of "adventure"
investors.”
agora-inc.com
STO/StartTheProfits/
Where is the Disclosure?
What seems to be missing in the above paragraph about BEVsystems International is the disclosure statement which states Mr. Davidson’s relationship with BEVsystems International. Writing a newsletter carries responsibilities to your readers. Stocklemon does not believe that Mr. Davidson has fulfilled these responsibilities. Just last week, Mr. Davidson hosted an investment seminar in San Francisco awaionline.com. Stocklemon is curious to know if Mr. Davidson presented Genemax as one of his “serious profit opportunities”. If he did, did he properly disclose his relationship to the company? We believe that this could present a serious conflict of interests
that should be addressed by Mr. Davidson.
Below are three other stocks that James Davidson was and/or is involved in:
1. BEVS- .19 cents
bigcharts.marketwatch.com
chart/quickchart.asp?symb=bevs&sid=0
&o_symb=bevs
2. ALIAF (Pink Sheets) - .89 cents
finance.yahoo.com
3. MIVT- .32 cents
finance.yahoo.com
Offshore Companies
It is Stocklemon’s experience that whenever there are large amounts of offshore holders in a company, there is a higher propensity for the stock to go lower. There are many reasons why offshore accounts are used but notice two common denominators, (a) none of these accounts are in the names of individuals; and (b) many are located in known tax and security havens. The following are a list of some of the offshore holders:
Latitude 32 Holdings Ltd. Shareholder Mareva House 4 George Street Nassau, Bahamas
Aberdeen Holdings Limited Shareholder 16 Market Street Belize City, Belize
Calista Capital Corp. P.O. Box W-961 St. Johns Antigua West Indies (1) Common Stock
Spartan Asset Group P.O. Box W-960 St. Johns Antigua West Indies 14
Pacific Rim Financial Inc. C/o Arundel House 31A St. James Square London SW1Y 4JR United Kingdom (1) Common Stock
Eastern Capital Corp. C/o Northbrook Farm Bentley Farnham Hampshire GU10 5EU United Kingdom (1) Common Stock
Eiger Properties Inc. C/o P.O. Box CH-4002 Basel, Switzerland (1) Common Stock
Rising Sun Capital Corp. 96 Front Street Hamilton HM12 Bermuda
Don’t Forget About The Business
The Company has not yet begun phase one clinical trials on their proprietary product. According to their filings,
“Management of the Company believes that an estimated $15,000,000 is required over the next three years for payment of expenses associated with the balance of pre-clinical development and commencement of Phase I clinical trials for the TAP Technology and for corporate expenses.”
10kwizard.com
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It is the belief of Stocklemon that this could cause extreme dilution to the stock IF the money was ever able to be raised. Furthermore, nothing is to guarantee success of the TAP product. It has not yet been tested on humans and has a long road ahead. Stocklemon hopes and prays for all cancer research to be successful. We hope that Dr. Jeffries will make a difference in his research. Unfortunately, we do not believe the vehicle of GMXX and the promoters behind
it have the same interest in the company as Dr. Jeffries does. It would be a shame to have a bad stock deal get in the way of good research.
Conclusion
Where there is smoke, there is fire. If the investors of Genemax would like to know why there is so much naked shorting in their stock and why the short sellers seem to be targeting them, they have to look no further than there major shareholders. We believe that the above report has thoroughly outlined sufficient reasons for even the most ardent supporter of Genemax to have
healthy skepticism about the true viability of this Company. Stocklemon has always said “If you can’t bet on the horse, then bet on the jockey.” Stocklemon is merely reporting this information as a caveat emptor to anyone who might think about investing in this Company. We hope that one day soon cancer will be completely eradicated in the human body. Similarly, we hope
that one day the cancer of stock promotion will be eliminated in our public marketplace.
Disclaimer:
Stocklemon.com does not guarantee in any way that it is providing all of the information that may be available. We recommend that you do your own due diligence before buying or selling any security. At any times the principals of Stocklemon.com might hold a position in any of the securities profiled on the site. Stocklemon.com will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market. |
