Gennfros 'asset transfer' questioned by investors

 by DOUG COLLIE

The executive director of Gennfros Limited, the company set up to take forward the Avocet group's "disruptive technology" has circulated a timetable setting out how the fledgling replacement business will be developed.

But no sooner had Paul Newsham, a Lancashire-based chartered accountant and sole director of Glennfros issued correspondence to potential investors than shareholders in Avocet appeared to challenge any proposed transfer of assets between the firms.

Mr Newsham, who has been appointed to sit on the board of a number of Avocet affiliated companies over the course of this year, also warned of legal proceedings in the English courts against a number of individuals named Orr, a Berwickshire farming family.

Avocet chairman Martin Frost and fellow director Dr Bob Jennings had indicated they would not be directors of Gennfros although shares are held by a Frost family company called Loch Lomond Heritage Ltd. Mr Frost has also ruled that 'dissident' Avocet shareholders will not be offered a stake in Gennfros, and Avocet management has taken the unusual decision to 'blackball' a number of its own shareholders.

Now Mr Newsham, in his first public statement as head of Gennfros, says in a 'Dear Colleague' letter: "Gennfros Limited is a private English limited liability company with now an ‘authorized’ share capital of 50 million one penny shares alongside £10 million pounds of redeemable, interest free and unsecured loan stock. 

"Gennfros Limited’s worth is focused on families of newly created intellectual property with a current anticipated net worth more than £150 million pounds. An US based multinational is in advanced talks to purchase 14 million of the above out of the 50 million one penny shares at £3 per share – some 4 million direct from Gennfros Limited with a further 10 million from proposed Gennfros Limited shareholders."

And Mr Newsham continues: "It has taken an additional week to formulate ‘injunctive relief’ against Mrs. Aileen Orr, Andrew Orr, and John Orr’s false claims that Avocet IP Limited and separately Gennfros Limited’s IP [Intellectual Property] has their origin with Andrew Orr & John Orr – it is now hoped that interim injunctions will be obtained in the English High Court this coming week. Once, this remaining IP issue is satisfied the new investors will publicly make their purchase offer to those Gennfros Limited shareholders with a ‘gift option’."

Potential investors are then informed that the planned itinerary For Gennfros Ltd is to secure an interim injunction against IP 'transgressors'; lodge the company's new Articles of Association at Companies House; submit a Confirmation Statement; and then new investors to purchase Gennfros shares from the company and shareholders.

However, an Avocet shareholder who has criticised the group for failing to bring any products to the market since its formation in 2014 told Not Just Sheep & Rugby: "I question the ability of Gennfros and/or Avocet officers to legally transfer Avocet assets to a new company without consent from shareholders. It is a fact that no new patents have been filed and plainly obvious that existing ANC PLC shareholders are being discriminated against."

Gennfros has also produced a document outlining how the methanol-based fuel additive, previously promoted by the Avocet Group can be manufactured together with a list of its merits.

But one observer commented: "Based on the methanol write up, it appears the Gennfros breakthrough technology is almost entirely made up of Avocet paid-for IP."

At the same time a poster on the Avocet Shareholders' Forum wrote: "In the Methanol write-up, I saw no sign of the “some forty plus filed and to be filed new patents” quoted by Martin Frost on October 29, 2020 that Frost promised would be the foundation of Gennfros.

"Instead, despite his commitment that 'Gennfros Limited has not even used the ‘avocet’ name let alone any intellectual property', Frost’s write-up contains numerous references to existing Avocet IP, now very interestingly renamed as Gennfros/avocet. It would appear that the Avocet shareholders already own all or a significant part of the IP that Gennfros is being based on. In my opinion, we are being sold mutton dressed up as lamb."

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