Complaint Review: Greenway Technologies Inc - Texas
Greenway Technologies Inc PKA UMED Holdings, Inc. Misrepresentation of investment opportunities, status of development, use of funds Texas
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This company has been raising money for years to develop a miraculous technology which exists and is quite amazing. Unfortunately, the founders, board members, and officers are incapable of performing their roles in a public corporation and have exaggerated and misrepresented the status of the company, the development of their technology, and mishandled corporate funds. Stock values have been manipulated to make the company look more attractive in order to entice prospective investers. Profits from stock sales were not reported accurately in many cases. The company, after 7 years, has only one asset, a process component, still in the development stage, although it was reported to be in testing for final release. The company announced that the complete unit would be ready within one to two years while in reality, some components are still in concept only.
This company has no business plan, no current income or cash flow reports, and no projected returns. Current SEC filings reflect heavy liabilities and no significant assets. The board of directors has defrocked Mr Six, hired a new president at a salary it cannot currently afford to pay, and has little institutional knowledge of the company or its project in GTL technology. It recently cancelled a presentation on an investment show for which it paid in the hundreds of thousands of dollars because it featured Mr Six as the president and chairman. It has no revenue and has relied 100% upon stock sales for income since its inception. It was originally formed as a "pump and dump", a strategy in which the company issues and sells, promoting the stock with the intent of creating artificial market pricing fluctuations in order to capitalize on increasing stock prices to quickly sell their stock and capture large profits, causing the share price to plummet to the detriment of those shareholders who do not sell.
Since coming into possession of the gas to liquids refining technology, company leaders have spent about $20 million of cash, retirement accounts and trust assets of investers placed in the company to promote the brand and its share value potential, rather than creating value by purchasing income producing assets and building shareholder value by legitimate means, including development of the aforementioned technology. Expense statements show a small percentage of capital was actually spent where shareholders were told the funds would be spent, specifically upon the gas to liquids technology.
Board members have acted improperly by committing the company to contractual obligations with former and current company employees, contractors and vendors with no visible means of income to satisfy the terms of those contracts, including employment agreements. In addition, it has violated EEOC regulations and IRS statutes by requiring activity by contract employees and failing to compensate them as agreed.
There is no recorded incident of an annual shareholder meeting in the company's history, the result of a hostile work environment created by Richard Halden, founder and original president of UMED Holdings. Halden refused to call shareholder meetings after numerous requests. After Halden departed, President and board chairman D Patrick Six also refused to call annual shareholder meetings. Most recently, the board of directors chairman Raymond Wright presided over a meeting in which the directors voted to change corporation bylaws to block a special shareholder meeting requested by several shareholders. Such activity is prohibited by Texas Business Code and federal securities regulations. The shareholders have been blocked from gaining first hand accurate corporate information and properly recorded documentation by a shroud of secrecy and stealth. As a result, most shareholders remain unaware their investment is now nearly worthless.
“We are pleased to announce that the initial production metrics of our first commercial G-Reformer® confirmed our expectations for synthesis gas production in the field. The unit met all of our team’s expectations, and we could not be more pleased,” said Tom Phillips, Vice President of Operations. (http://globenewswire.com/news-release/2018/03/07/1417633/0/en/Greenway-Technologies-Inc-Marks-Milestone-Completes-First-Commercial-G-Reformer.html)
**Investers could be more pleased, Tom. They thought it was ready to go into the field--at least, that's what they were told. They didn't know you were still testing the metrics. There's a lot to be done after the metrics are established. Like building a fully operational unit.
Ray Wright, President of Greenway Innovative Energy, said “the results validated our unique process called Fractional Thermal Oxidation™ (FTO). Reforming with FTO has many advantages over more expensive, legacy, large-scale methods. Our FTO-based GTL systems can be deployed in the field where needed, a first in the industry. “FTO,” he said, “will facilitate monetization of natural gas that is stranded, flared, or vented. Also, our fuel is cleaner than diesel made from petroleum. It has less heavy metals and impurities offering an incremental environmental improvement.” (ibid)
**The technology is real; however, the component is dependent upon other equipment to actualize. As you can tell, the quotes are conceptual, rather than actual facts. Rather than a company, this appears to be no more than a very expensive academic research project. During testing, the lone prototype was damaged due to design issues and repairs are reported to be over $200,000.
Pat Six, President of Greenway Technologies, Inc. said that the company is engaged in ongoing discussions with funding joint venture partner candidates and “is optimistic that we will be able to begin construction of the first field-located Greer-Wright GTL System in 2018.” (ibid)
**How is that possible, given that there are no drawings, no plans and no funds? (Technically, I suppose they could turn a shovelful of dirt to "begin construction".)
The company consists of no assets other than a component part damaged by fire and has distributed almost all stock shares, plus thousands of dollars in delinquent payables, rendering it insolvent, although many in the company continue to behave as though it is still in business. While it owes considerable sums of money to creditors, it is still seeking additional investers. The exchange for funds raised would be additional issues of stock, already devalued below 1/4 the original investment value and FUTURE revenues promised to invester angels rather than original shareholders.
Some in the company suggest that investers who accuse them of mismanagement and defrauding the investers either don't understand or suffer from the sour grapes of not receiving a more prompt return on their investment. You be the judge. Review the corporation filings on Edgar (sec.gov), review the facts, and make your own decision.
All persons should be wary of this company and its efforts to attract unsuspecting investers.
This report was posted on Ripoff Report on 07/12/2018 12:46 PM and is a permanent record located here: https://www.ripoffreport.com/reports/greenway-technologies-inc/texas/greenway-technologies-inc-pka-umed-holdings-inc-misrepresentation-of-investment-opportun-1451466. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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