Produce evidence of patent sales, Avocet bosses told

by DOUG COLLIE

One of the largest shareholders in the Avocet 'disruptive technology' businesses has challenged the company's directors to produce conclusive evidence of the sale of intellectual property to unidentified Middle East buyers for $40 million dollars.

Alistair Munro is also calling for a forensic investigation of Avocet Natural Capital's [ANC] books, and says he holds the directors personally liable for the situation the Avocet Group is currently in.

A two page spread in today's Sunday Mail newspaper on the business activities of Avocet chairman Martin Frost is headlined "We'd Love to Know What He's Dung With Our Cash" and includes an interview with Mr Munro, an Edinburgh and Dubai based owner of several companies.

According to the most recent shareholder lists for Avocet Natural Capital (October 2020) Mr Munro held 1,658,250 shares in the company having previously owned 1,005,000 shares in Avocet Infinite (now called Omega Infinite and in compulsory liquidation).

The strong views Mr Munro holds about the Avocet 'fiasco' as he calls it are set out in detail on the Avocet Shareholders' Independent Forum.

In a response to an ANC newsletter which was sent to investors by Mr Frost on October 1st, Mr Munro writes: "I note with interest but with no surprise that the General Meeting of Avocet Natural Capital Plc was cancelled (postponed). I want to confirm that I wrote to the Directors on September 29....objecting to this proposed meeting on the basis that it was not properly structured in compliance with UK regulations."

On the matter of the Sunday Mail article, Mr Munro says he had given an interview making the same points that there was no financial transparency in the Avocet family of companies and the time had now come for action in the form of an independent forensic audit of the accounts and if necessary action taken personally against the Directors for misuse of company funds. 

"Misuse at a minimum would be in line with the information already provided by Martin Frost in relation to inappropriate purchases from his personal estate funded by shareholder monies and for the company funding costs associated with the internal family feud with the Orrs which is of no relevance to Avocet/Omega business plan. This is apart from a simple incompetence to deliver against previously published business plans."

Mr Munro's sweeping condemnation continues: "The only satisfaction I can have from the fiasco that Avocet has become under its current leadership is for a dividend to be paid to all cash paid up shareholders, I being one of those, and for us to be able to exit the Avocet Group of Companies with our funds returned and for many to put this down as a bad investment experience.

"I am deeply sceptical that even this will happen as there is no evidence to validate that the claims made in the newsletter of October 1st are real and based on historical performance. Until this is the case all communications "For and on behalf of ANC Plc" must be treated as fictitious and not based on any validated evidence."

Mr Munro adds that he joins others in the request for the Board of Directors to produce certified evidence that the reported sale of patents has taken place and that such funds exist.

Mr Frost told shareholders last week that $40 million had been paid for intellectual property, and the first tranche of $10 million would be used to pay debt and to pursue litigation against parties which had 'damaged' Avocet.

Mr Munro writes: "I for one object to the Board of Directors using any payment received by ANC Plc for any purpose other than for distribution to shareholders either as a dividend or as a buyback of shares."

The Sunday Mail article has contributions from several individuals who believe their shareholdings in Avocet are now worthless. Since the first Avocet company was formed not a single product has been marketed.

Mr Frost issued a strong denial to the paper that investors had lost cash or that shares were now worthless. And he said he was unaware of an investigation being conducted by the Government's Insolvency Service.

He is quoted as saying: "A new fuel often costs £400 million plus to obtain commercial approval. Avocet perfected this on less than £10 million. On other Avocet products there is widespread support".