New shares not for the 'mean spirited'

 by EWAN LAMB

The revelation that Gennfros Ltd., the company set up to replace the 'disruptive technology' Avocet group is 100 per cent owned by the Frost and Jennings families comes just ten days after investors were told neither chairman Martin Frost nor fellow director Dr Bob Jennings would be personal shareholders in Gennfros.

This apparent contradiction has been seized upon by dissident Avocet shareholders, a number of whom have been "blackballed" at the behest of Avocet management and will not be offered a stake in the Gennfros operation.

Mr Frost has circulated the hundreds of Avocet shareholders with an email called A Better Understanding of Gennfros Limited in which he sets out the criteria under which existing investors will be gifted shares. The intention is to dissolve Avocet Natural Capital which, according to Mr Frost, has become 'unworkable'.

He has on numerous occasions expressed his wrath at those who have questioned the "complete lack of progress" and the absence of any cash return for investors six years after the Avocet range of businesses started up despite holding patents said to be worth tens of millions of pounds.

The new email explains: "Gennfros Limited is a private limited liability company currently indirectly jointly owned (100%) by the Jennings and Frost families. The company’s main objective is the development and commercialization of intellectual property. 

"Gennfros Limited’s new company articles will shortly show that the company has an ‘authorized’ share capital of 50 million shares. Again, within Gennfros articles there are stringent provisions for privacy and good husbandry – so please read and understand the new articles before accepting any Gennfros Limited share entitlement option."

Potential investors are also told that because of their idealistic philosophy encompassing natural capital views the Jennings and Frost families are keen to gift others entitlement options to purchase shares in Gennfros Limited. Some of these individuals are current shareholders in Avocet Natural Capital Plc.

The letter says: "So if an ANC Plc shareholder holds 10,000 shares then this holder is likely to be offered an option to acquire 10,000 Gennfros Limited shares, that said if a timely approach to Gennfros (the grantor) is made then this option entitlement for 10,000 Gennfros Limited shares can be split at the grantee’s request amongst his family, friends, and associates (i.e. such as 10 parcels of 1,000) providing the delegated grantee is an agreeable party to Gennfros Limited."

For several months now Mr Frost has claimed wealthy new investors are waiting in the wings, ready to exploit Avocet's 'revolutionary' fuel additive which will, in the chairman's view, render electric vehicles obsolete. But sceptical investors have challenged Mr Frost to name the mystery investors and lay out their proposals for all to see.

According to the latest email: "From new investors, after 17th November, select Gennfros grantees will receive a cash offer for part or all of their option shareholdings. It is expected that the new investors will take 10 million Gennfros shares from grantees while simultaneously purchasing for cash a further four million Gennfros shares – all at the price of £3 per share."

Later today a list of ANC Plc shareholders who have not been 'blackballed' by the company's bosses is expected to be published. 

Mr Frost declares: "Gennfros Limited’s new investors do not wish to be associated with any perceived troublesome ANC Plc shareholders – so not all ANC Plc shareholders will receive an offer of Gennfros Limited shares. Being a private company all Gennfros Limited shareholders are being vetted not only by the Jennings and Frost families but by the new investors – appeal of this process is possible via the arbitration committee,

"Gennfros Limited shareholder should be a person or institution who has a firm belief in natural capital objectives and who is not mean spirited. The new investors are annoyed by recent perceived badness and mischievousness from some existing Avocet shareholders – such shareholders will not be receiving an offer and dependent on the magnitude of the untruth such ANC Plc shareholders or their lackies [sic] are likely to be sued. Note: our new investors are famed in ensuring that the shareholder majority may freely enjoy share ownership, they take badmouthing and pettiness very seriously."

The Avocet Shareholders' Forum has experienced heavy contributor 'traffic' following this latest move to exclude the 'mean spirited' from Gennfros.

One poster wrote: "Martin Frost on October 29th, 2020: '….neither Bob Jennings nor Martin Frost shall be.…personal shareholders of Gennfros Limited.' Martin Frost on November 8th, 2020 "Gennfros Limited is a private limited liability company currently indirectly jointly owned (100%) by the Jennings and Frost families."

And one shareholder who has lost all faith in Avocet commented: "How can any business separate troublesome investors from obedient 'yes men and women' in its dealings? The Gennfros scenario as outlined in the message I received is totally ridiculous and unacceptable under company law".