If there was ever a ticker whose overhaul was setup to destroy shareholders, it is that of BluForest, Inc ( BLUF ). There is just no trusting this one.
We highlighted this one back when it was trading as Greenwood Gold Resources ( GGRI ), one of the biggest scams of 2011. The demise of what was indisputably a major Pump & Dump, was foreseeable and we foresaw it. We'll start with the fact that GGRI was a Diane Dalmy concoction. Ms. Dalmy is one of the filthiest SEC attorneys out there, so dirty that OTC Markets has listed her as a Prohibited Attorney . Pretty much every stock Ms. Dalmy's name is attached to has been the subject of a Pump & Dump scheme. She has been singled out for misappropriating her opinion letters, enabling the improper trading of unregistered or improperly registered securities.
"In general, we expect attorneys who provide us with letters to know securities laws, do the work required, and be ethical," Pink Sheets chairman Cromwell Couslon", told the Vancouver Sun, which quoted him in a February 17, 2010 article dedicated to Ms. Dalmy. " We ban them when it becomes apparent they are stupid, lazy or dishonest."
Indeed, Ms. Dalmy is a cancer to those who believe they are actually making investments in hopeless schemes.
We're not going to rehash the entire GGRI fraud here, as our previous advisory does it adequately The entire scheme lasted less than two months, from the time GGRI announced the pretend intent to pretend to acquire a pretend gold property to the announcement that it would not be pursuing the acquisition after all. Just long enough to execute a two week Pump & Dump costing investors millions of dollars.
So having scammed the street in pretty short order, GGRI President, Branislav Jovanovic, executes the obligatory reverse split to eliminate the holdings of those suckers and sells the shell to the next Shylock, the end result being the current BLUF .
"So", you argue, "there is new management and a new deal with big assets. Surely, this time this ticker must be a safe bet." Really? Yes, while the company records its primary asset as having a value of almost $700 million, it really is a made up number, as the only value received for the asset was a bunch of BLUF stock. So who knows? It smells like a bunch of people getting together and putting the fix in. And to top it off, there's the really stinky part of the deal:
"In further accordance with the terms and provisions of the Purchase of Acquisition Agreement, the Company entered into a three year consultant agreement (the “Mainland Consultant Agreement”) with Mainland Investment Ltd. (“Mainland”). The Mainland Consultant Agreement provides for Mainland to provide financial, advisory, marketing and investor relations services and the Company to pay to Mainland an annual compensation of $1,000,000 and grant 1,000,000 stock options exercisable at $1.00 per share for each year of the agreement for a total of 3,000,000 stock options."
A million dollars a year and 3 million stock options for advise and investor relations services? Who's help are they getting? Warren Buffet?
Ask your self this: If the asset is genuinely worth almost $700 million, why would they shove it into a shell with as stinky a history as GGRI now BLUF ? Why does this three quarters of a billion dollar company have only 43 bucks in the bank? And worse, why did Branislav Jovanovic have to sue BLUF in order to finish getting paid for the shell, even though he received 833,333 split shares to settle a $60,000 debt.
Fool you once, shame on them. Fool you twice... well you know.
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