New driving force for 'avocet' wonder fuel

by DOUG COLLIE

A former director of Preston North End Football Club is spearheading efforts by the Avocet group of 'disruptive technology' companies to organise trials of a revolutionary fuel in vehicles used by the English and Welsh police and the National Health Service.

Paul Newsham, a Lancashire based chartered accountant, is a director of two companies bearing the Avocet name - Avocet NC Ltd and The Avocet Clearing House Ltd. He is the sole director and holder of all 100 £1 shares in Avocet NC which was set up in February of this year with an address in Penwortham, Preston.

The Certificate of Incorporation for Avocet NC is the only document filed at Companies House so far. The nature of business is listed as 'activities of venture and development capital companies'. Mr Newsham has 25 current and former directorships, according to the companies register. He was a director of Preston North End from 2004 until 2014.

Since January 2019 Mr Newsham has been a director of RfM Fylde Ltd., the company which recently audited the 2018 annual accounts of Avocet Natural Capital PLC. Auditor Alan Meikle, of RfM Fylde, succeeded Paul Charlton, of Newcastle accountancy firm Ryecroft Glenton who audited the 2017 books.

Mr Newsham's prominent role in facilitating tests for the so-called 'avocet' methanol additive has been highlighted in a shareholder letter distributed to 650 investors by group chairman Martin Frost.

According to Mr Frost: "Avocet NC Limited under the wise guidance of Mr. Paul Newsham is arranging product trials with the English & Welsh Police and the NHS."

The letter also claims:"A UK monthly production tonnage of 5 tons rising to 50 tons monthly for product testing is considered feasible from one Avocet ‘golden supplier’. Similar production quantities are in active preparation for both North American and Continental Europe ‘golden suppliers’ – so hopefully by January end 2021 some 24 million litres per month of avocet methanol will become a practical reality"

The imminent mass production and marketing of the company's fuel which is designed to replace petrol and diesel will be welcome news to shareholders who have expressed increasing concerns at the lack of progress since the first of a network of Avocet firms was established back in 2014.

In a reference to the additive and other products in development an Information Memorandum (IM) issued by Avocet from late 2016 predicted: "These products which carry additional efficacy & cost saving benefits should be available to the market place in 2017 and 2018."

Prospective investors were also told of a pre-production trial run of the proposed manufacturing process by Austrian company DPx Fine Chemicals increasing to 10,000 tonnes production per year.

According to the 2016 IM: "DPx Fine Chemicals are expected to handle both the production and distribution of Avocet additive via a licencing agreement with a royalty fee payable to Avocet Infinite Plc. The minimum production volume for the Avocet additive is 10,000 tonnes.

"Initial discussions suggest that Avocet Infinite Plc would expect to receive 1p per litre (on a diesel equivalent basis) royalty on the avocet methanol fuel blend (a 2% Avocet blend). With the minimum production volume, this would equate to royalty payments of £1.7 million (there are 775 litres of Avocet per tonne). The maximum production volume from Linz is 100,000 tonnes using the same assumptions equates to £17 million annual royalties.

"This production would be for sale in the EU market alone. DPx can also provide access to similar arrangements in other key markets. In total they have 64 plants round the world that are capable of producing similar output and therefore production capacity is not envisaged to be an issue."

To the uninitiated the large number of Avocet companies including relative newcomer Avocet NC Ltd may be confusing. But Mr Frost provided clarification of the linkage in his latest correspondence with investors.

"Avocet NC Limited is NOT a subsidiary of Avocet Natural Capital Plc for so to be would negate the Avocet Patent Box proposals. Instead Avocet NC Limited is a standalone company. ANC Plc and Avocet NC Limited are linked by contract in which ANC Plc could/can exercise 100% control. Avocet NC Limited owns The Avocet Clearing House Limited which in turn owns all Avocet subsidiary companies except for Avocet Bio Solutions Plc."

With regard to Mr Newsham, Mr Frost wrote: "Paul Newham manages businesses well, he motivates people, he makes money, and currently runs a number of accountancy, finance & legal companies.  Financially, Paul is very solvent and has a good credit rating. In my opinion Paul is a good interim CEO for Avocet NC Limited. Paul paved the way for both the English Police Force and the NHS to trial the ‘avocet methanol additive’ – shortly put, Paul achieves things."

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'Unused' Memorandum puts in an appearance

SPECIAL REPORT by EWAN LAMB

Copies of a 2016 Information Memorandum sent to potential investors in the Avocet Group's 'disruptive technology' concepts have been passed to Not Just Sheep & Rugby, disputing claims by company chairman Martin Frost that the document "was never completed and not used".

The 29-page memorandum, packed with information about Avocet Infinite PLC and its subsidiaries, was attached to emails written by Mr Frost in December 2016 and January 2017 and sent to individuals who had expressed an interest in the Avocet brand.

The 'strictly confidential' Avocet Infinite Information Memorandum (IM) dated October 2016 was one of four attachments accompanying the emails. The others dated from November 2016 and included a so-called Snapshot of Prominent Facts.

Yet in an email to Kit Jarvis, a partner in the law firm FieldFisher, earlier this week Mr Frost wrote: "The 2016 IM was never completed and not used - and indeed I understand that Aileen Orr dropped in the 2018 IM figures into the 2016 IM".

As reported previously, Mr Jarvis forwarded an email to Mr Frost which had been sent on behalf of this blog to Avocet's advisers whose names appear on a later 2018 version of the IM. 

We had asked Fieldfisher as legal advisers, the Avocet company auditors Ryecroft Glenton and Asset Match, share platform providers and Avocet Infinite financial advisers, according to the IM, whether they had signed off the 2018 document before it was issued.

Mr Frost then published copies of our message to his 'advisers' in a shareholder letter sent to 650 investors on August 3rd. The text of his email to Mr Jarvis was also reproduced.

In another letter to shareholders on February 2nd this year Mr Frost revealed that FieldFisher had petitioned the courts to have Avocet Infinite (now called Omega Infinite) wound up.

He wrote: "Omega Infinite Plc is to go into some form of insolvency. A winding up petition initiated by lawyers Fieldfisher for some £400,000 is to be heard on February 12th in London; likely now to support this petition are lawyers Womble Bond Dickinson for another some £600,000 along with various other creditors for £300,000. The total trade creditor indebtedness of Omega Infinite Plc is likely to reach some £2.5 million, and on top of which there are private Avocet controlled loans in excess of £10 million."

A far cry from the information being provided to would-be investors in the 2016 IM. It forecast these revenue totals: 2019 £52.016 million; 2020 £122.951 million; 2021 £202.796 million. Bold predictions from a business which was not trading at the time.

The IM also stated: "The current opportunity to invest is in a new funding round totalling up to £5 million, taking the total capitalisation of the group up to £15.9 million. It is intended that this will be the last opportunity to purchase shares at £1 each, with a significant future revaluation towards the end of 2016 given the technical and commercial progress of all three divisions.

"The £4-5 million fund raise is expected to be assigned as follows: Fuels - Pre-production of fuel additive Process development at Copperhead facility Developing final engine test with modern engines (exhaust gas recycle) - £750,000 to £1 million; Agriculture – hydroponics   Finalise grain solution for initial sale; Ozone seed pre- treatment; Further develop grain yield; Improvements in design of tray mould system. Agriculture – Cattle -  Stock of Cattle finishing £500,000 to £700,000; Green energy R&D  -  Investments into AD plants £1-£1.3 million. Central costs/contingency  Includes 150% provision for current legacy litigation issue - £1 million."

In his email to potential stakeholders Mr Frost wrote: “May I first suggest you peruse the Avocet Synopsis followed by the Draft Jump Start 2015 Report which will provide a flavour of Avocet’s innovative ethos. The November Snapshot of prominent facts along with the Avocet Information Memorandum should thereafter enhance financial understanding.”

And they were also told: "Avocet Infinite Plc has commenced an application to secure EIS HMRC tax relief for subscribers – furthermore via a share platform such as Asset Match such will grant in the short term an exchange marketability for Avocet Infinite Plc shares. Note: it is Avocet Infinite Plc’s intention to obtain a full stock market quote for either the whole or part of its business during the next two to three years."

In fact Avocet Infinite shares were never traded on the Asset Match platform. And shares in a replacement' virtually debt free' parent company called Avocet Natural Capital PLC are yet to make it onto that platform.

'A Snapshot of Prominent Facts as at 14th November 2016' also outlined ambitious elements of the Avocet package.

It claimed: "Currently the Avocet Infinite Plc group is largely non-trading with research and development as its main activity. Coller IP have indicated that Avocet Infinite Plc’s intellectual property is currently worth more than £100 million.

"Jumpstart [a consultancy specialising in research and development tax relief] expects to secure in early 2017 up to £2 million of a tax credit refund for Avocet Infinite Plc for the years 2015 and 2016. HMRC have indicated their tentative approval (subject to sight of the finished product) of Avocet Infinite Plc’s £15 million ISA Cattle Bond and £10 million ISA Renewable Energy Bond. Such bonds will fund the cattle herd and anaerobic digestion / green methanol plants.  In 2017 the Avocet Infinite Plc group expects to produce a revenue profit of more than one million thereafter rising to over twenty-eight million in 2019."

A recipient of the 2016 IM and the other documentation from Avocet told us: "As far as I'm concerned the figures presented by the company were totally unbelievable from what they were calling a start-up business primarily involved in R&D.

"There was no evidence to back up these exaggerated claims of future revenue and profit, and not one of the forecasts made in 2016 has been fulfilled. The same can be said for the 2018 memorandum which contained even more fanciful projections. Did Avocet's so-called advisers concur with its contents?"

So far Not Just Sheep & Rugby has not received a response to our enquiry of August 3rd from FieldFisher, Asset Match or Ryecroft Glenton.

Revealed: Avocet's 'Italian Job'

by DOUG COLLIE

The flawed plan to develop a demonstrator farm in Northern Ireland to showcase 'disruptive technology' to potential investors is not the only agricultural venture to be aborted by the Avocet Group as it bids to become a world leader in revolutionary farm and fuel production.

Not Just Sheep & Rugby has already reported on the plight of James and Linda Christie whose Ballinteer farm, near Coleraine, was ruined when their short-lived contract with Avocet was torn up.

The group chairman Martin Frost told the couple by email on a Saturday evening in July 2018 he was not prepared to honour the terms of a 10 year lease which he had signed only two months earlier.

It meant the Christies were left to pick up the pieces after Avocet ordered the demolition of farm buildings to make way for a 'cow palace' and an anaerobic digester. The damage inflicted on the farm steading has been estimated at more than £800,000.

But there was no mention of the attempt by Mr Frost to insert onerous new clauses into the contract when he told staff in early August 2018 that the Northern Ireland venture had been abandoned.

In a so called weekly review under the heading Irish Farming, Mr Frost wrote: "This was to be run on three sites: two in Southern Ireland, and one in Northern Ireland: unhappily, James Christie & family appears to have gone walkabouts with no communication during the last fortnight – so unless, there is a dramatic change one may consider for practical purposes the current Avocet voyage into Northern Ireland being a regrettable expensive time waste."

Mr Christie told us: "The message and attached letter we received was from Martin Frost's personal email address and the correspondence was not on Avocet headed notepaper. So can we please see the minutes of the board meeting where the decision was taken to inflict the unacceptable new terms on us?"

Avocet was asked to respond with their version of the failed Ballinteer "jewel in the crown" project, and we published Mr Frost's response in full earlier this week. The issues raised by the Christies were not addressed.

Around the time the Ulster scheme was hitting the buffers Avocet was contemplating a much larger deal - the purchase of two Italian farms for E15 million.

Details of the proposed transaction were circulated in June 2018 with an intention to buy the Onesti family's La Primavera and Le Cascine farms as well as a creamery in Parma, Northern Italy.

An Avocet report stated: "In broad terms a price of 15 million euros is due to be paid for these two farms on completion date Tuesday 31st July (2018). The month of June shall be one of due diligence and fact find upon these Onesti assets. Italian legal agents, valuers, and accountants have been appointed by Avocet Bio Solutions Plc (Avocet in Ireland and the EU).

" Amongst the Onesti family and their advisers there remains a difference of opinion as to how the 15 million is to be paid and whether it be in cash or shares in Avocet Bio Solutions Plc – note there is a wish by the Onesti brothers to give part of the consideration price to the Catholic Church – so the Catholic Church could become shareholders in Avocet Bio Solutions Plc."

The report outlined ambitious development plans for the soon to be acquired real estate.

A series of visits by Avocet representatives was designed to establish: "Quality of existing farming and livestock and how such can be improved; Location of ‘Frisona’ herds into the single ‘La Primavera’ farm site. The establishment of a Piemontese milk herd at ‘Le Cascine’ farm site.  Establishment of robotic milking and fodder units; Establishment of AD / Biogas to methanol along with the use of solar power.

"Development of a 40 unit time share on the Le Cascine farm; Development of a log cabin village around lake on Le Cascine farm; Development of road side retail operation on the La Primavera farm; Development of surplus & separate villa on La Primavera farm; Development of ‘piggeries’ on La Primavera and creamery sites; Development of land south of main road on La Primavera farm. . Without damaging the core business, it may be possible to extract some 3 to 8 million euros from surplus assets."

Then a follow-up report in October 2018 noted: "On Friday 5th October, in Milan, Avocet Bio Solutions Plc convened a high-level meeting with their Italian lawyers, accountants, and professional advisers to settle out a proposed structure and timetable for the acquisition of the two Onesti farms and dairy.

"After considerable debate a working solution amenable to both Avocet and the Onesti family appears to be agreed: simply put it is likely that the new Italian corporate structure to be known as Onesti Farms with an Onesti remaining as the ‘Italian farmer’ will become 100% owned by Avocet Agriculture Italy Limited which company in turn will be a 100% subsidiary of Avocet Agriculture Ireland Limited; which company is a 100% subsidiary of Avocet Bio Solutions Plc of Cork".

But the multi-million euro deal was never signed and sealed. A December 2019 Avocet Presentation confirmed: "Financial support for the creation of Avocet Bio Solutions Plc (now an independent master franchise) proved burdensome with a failed Italian farm purchase occasioned by the death of the Onesti vendors"

Our email goes viral...well almost!

by DOUGLAS SHEPHERD

A copy of an email sent by Not Just Sheep & Rugby to the Avocet Group of disruptive technology key 'advisers' with a request for comment can now be read by the company's 650 shareholders after it was included in a letter to investors by Avocet chairman Martin Frost.

The 'mass circulation' of our correspondence took place overnight after the text was apparently forwarded to Mr Frost by Kit Jarvis, a partner in the London law firm FieldFisher.

FieldFisher together with share traders Asset Match and accountants Ryecroft Glenton are named as advisers to Avocet in the second of two Information Memorandums (IM) prepared for submission to wealthy investors in 2016 and 2018.

Copies of the documents - both marked strictly confidential - were passed to Not Just Sheep & Rugby by a very concerned shareholder who asked if any of the specialist companies had signed off the 2018 IM. So we wanted to find out if this had taken place.

This was our message to FieldFisher, Asset Match and Ryecroft Glenton:

"I have been contacted by a number of shareholders who are concerned that Avocet Infinite (now Omega Infinite) is in the hands of liquidators while a subsidiary, Orrdone Farms is in administration with published debts (administrators’ report) of over £3 million, including in excess of £600,000 owed to trade creditors. I am led to believe a significant number of investors are expressing their views on an Avocet shareholders’ forum.

"I am contacting you after a shareholder sent me copies of two ‘strictly confidential’ Avocet Information Memoranda (IM) dated October 2016 and November 2018 containing financial predictions for the businesses from 2017 onwards. The 2018 document includes a list of “DIRECTORS AND ADVISERS” including: Legal Advisers Fieldfisher LLP Riverbank House 2 Swan Lane London EC4R 3TT Auditors Ryecroft Glenton 32 Portland Terrace Newcastle upon Tyne NE2 1QP and Financial Advisers Asset Match Limited 1 Bow Lane London EC4M 9EE.

"The individual who wrote to me and who attached the two IMs drew attention to the following: “The financial projection categories differ between the two documents but projected total revenue for Financial Year (FY) 2019, FY 2020 and FY 2021 remain constant in both cases.The 2016 IM quotes these revenue totals: 2019 £52.016 million; 2020 £122.951 million; 2021 £202.796 million. The 2018 IM quotes these revenue totals: 2019 £188.70 million; 2020 £210,500 million; 2021 £390.600 million.”

"The sender then went on to comment: “All of the figures are of course ludicrous and grossly inflated. How could a Group which has never even traded tell potential investors it was going to perform to this spectacular level. So what role did the advisers named in the 2018 memorandum play in its preparation? Did they check the information to see if the figures were realistic and plausible, and did they sign off the document before it was issued to so-called High Net Worth investors?”

"Can you please provide a response to the points made above for possible inclusion in an article concerning the IM projections and the views of concerned shareholders?"

Not Just Sheep & Rugby has yet to hear from any of the three companies who were advising Avocet at the time the 2018 IM was produced.

But in his newsletter Mr Frost tells investors: "Shareholder, solicitor Kit Jarvis whose father, is a High Court Judge, is also a shareholder, this evening copied me the below email and that from Mr. B. Chisholm."

This is Mr Frost's reply to Mr Jarvis:

From: "martin.frost"  

Date: 03/08/2020 19:06 (GMT+00:00)

To: Eirlys Lloyd; Bob jennings; Paul Charlton (Ryecrofts), Stuart Lucas (Asset Match), Kit

Subject: FW: Avocet Group projections

Dear Kit

Thank you for this.

The 2016 IM was never completed and not used - and indeed I understand that Aileen Orr dropped in the 2018 IM figures into the 2016 IM. Both the 2018 IM and 2016 draft IM were provided to Mr. W. Cleghorn of Aver (partner of Emma Porter) by Aileen Orr. Cleghorn knows Chisholm and I understand that Cleghorn is an editorial source to Chisholm plus an undisclosed contributor to the Avocet Shareholder Forum promoted by Aileen Orr.

 

The 2016 IM figures (unless used by Andrew Orr) secured zero investment - the 2018 IM figures may have influenced Wheatsheaf though Wheatsheaf did not proceed because of Johne’s disease. 

Bottom line the fuel projections (and resultant profits) were deduced by Coller IP from old ICI figures & World diesel consumption figures which again were echoed in the Harvard Business School case study on Avocet. I understand that Mr. Cleghorn is very worried about his bias support for the Orr family and no doubt seeks to deflect attention elsewhere.

I trust you are keeping well: I expect to meet with Begbies this Friday and shall keep you appraised of developments.

Best regards

Martin

NOTE: For the record Chisholm has never met 'Cleghorn' and has never received any documents or correspondence from him.

Avocet claimed 'Review' was a Government publication

BILL CHISHOLM on his efforts to have misleading coverage of Avocet investigated

Proof has finally emerged that 'disruptive technology' business Avocet Infinite told shareholders and investors its innovations and initiatives had been highlighted by the UK Government in the shape of coverage in a glossy magazine.

But although the role of Parliamentary Review, a publication which charges companies thousands of pounds for inclusion on its pages, was drawn to the attention of two Borders MPs three months ago neither of them would look into the publicity given to Avocet's 'revolutionary' proposals. The Review has no link to the Westminster legislature although there has been confusion over its actual status in the past.

Now, a confidential document sent to me by Avocet Natural Capital chairman Martin Frost clearly shows how important those articles may have been in persuading potential investors to take a stake in Avocet.

The 2018 report - a detailed assessment of Avocet's intellectual property by IP Valuers Emerix IP Limited trading as Coller IP, of The Shard, 32 London Bridge Street, London - carries the following statement: "The Parliamentary Review Energy & Environmental 2017/2018, issued by the UK Government, has recently presented and highlighted the Avocet Infinite Plc business opportunities, its technical innovations and its associated Avocet Natural Capital initiatives."

As The Times reported in November 2019: "The self-styled Parliamentary Review charges schools, hospitals and businesses thousands of pounds to be featured on its pages as examples of “best practice” but fails to tell readers that the positive coverage is paid for. An investigation by The Times last year showed that some participants who paid to appear in the publication wrongly believed they had been handpicked for an honour by parliament".

After a number of people contacted Not Just Sheep & Rugby this spring to ask about the six separate articles featuring Avocet on the Parliamentary Review website I emailed John Lamont, my MP, on May 2nd this year in the following terms: "My main reason for contacting you is to ask you to investigate the role played in the shape of reams of generous and favourable coverage afforded Avocet Infinite by the Parliamentary Review over a relatively short period of time.

"As a constituent I would request that you investigate the role of the Parliamentary Review in this sad affair, and attempt to find out the background to Omega Infinite’s spectacular collapse.

"The series of glowing articles appear to have been assembled without any attempt to check on the claims being made by the company’s directors. Even when Avocet became Omega in October 2019 the Parliamentary Review continued calling it Avocet. As you’ll be aware Parliamentary Review is jointly chaired by Lord Blunkett and Lord Pickles."

It should be pointed out that both members of the House of Lords have now given up their respective roles with the magazine.

I also drew Mr Lamont's attention to the plight of the many creditors of Orrdone Farms PLC, an Avocet subsidiary now in administration with substantial debts, and of concerns of shareholders in Avocet Infinite (now Omega Infinite in liquidation).

In his reply to me less than 40 minutes later on a Saturday afternoon Mr Lamont, Conservative MP for Berwickshire, Roxburgh & Selkirk, told me: "MPs have no oversight of the Parliamentary Review. The Parliamentary Review is owned by Westminster Publications Limited and is not affiliated to Parliament or the UK Government.

"Any concerns you have about the articles which have appeared in the Parliamentary Review should be directed to their Chief Editor. The other matters to which you refer should be directed to the police and Companies House."

I indicated my dismay in a follow up message to Mr Lamont, adding: " Members of the public and businesses are clearly being misled into thinking this Review is directly linked to Parliament. I find it disappointing that you will not pursue this issue on behalf of your constituent[s]. 

"After all it’s not that long ago that Conservative councillor Mark Rowley was singing the praises of Avocet Infinite (as it then was) claiming it was a ‘revolutionary’ cutting edge business which was set to bring jobs and prosperity to the eastern Borders."

Over the next few weeks Mr Frost issued warnings to a number of his former employees together with other individuals, including myself. He claimed we faced legal action for unspecified "possible criminal activity" including breaches of the Data Protection Act. The warnings were contained in letters he distributed to 650 Avocet shareholders.

In one missive on June 28th which named me Mr Frost also referred to Mr Lamont and one of his relatives in connection with the alleged 'selling on' of Avocet property for personal gain.

So on June 29th I contacted Mr Lamont a second time, providing him with a copy of the offending shareholders' letter.

I wrote: "I am now aware that the Lamont family has shares/an interest in Avocet Natural Capital PLC [Avocet Infinite's successor as parent company]. You will see from Mr. Frost’s ‘rant’ (his word) that you are named in the text and I am named as a possible target for litigation following my investigations and articles I’ve published about Avocet. I believe I am entitled to ask you to intervene in light of his attempt to cajole others into taking action against me.

"In light of recent developments I would ask you again to investigate this disturbing affair which has seen former employees of Avocet left without wages and has left trade creditors (many of them local) hundreds of thousands of pounds out of pocket. Even the administrators of the farm business and the procurator fiscal’s representative are the targets for Mr. Frost’s outlandish wrath." 

I also suggested that if his family's involvement with Avocet as shareholders in the business left Mr Lamont open to accusations of a ‘conflict of interest’ then he could pass my request to another MP for attention.

But Mr Lamont's second response - also on June 29th - was worthless from my point of view. He told me: "As I have previously stated, MPs have no oversight of the Parliamentary Review. The Parliamentary Review is owned by Westminster Publications Limited and is not affiliated to Parliament or the UK Government. 

"Any concerns you have about the articles which have appeared in the Parliamentary Review should be directed to their Chief Editor. The other matters to which you refer should be directed to the police and Companies House. I have attached a list of local MSPs."

After Mr Lamont's first 'refusal' to get involved I asked Berwick-on-Tweed Conservative MP Anne-Marie Trevelyan to intervene as the large collection of Avocet companies were registered in her constituency while a number of creditors of Orrdone Farms were her constituents.

I received no reply to my first two messages. When I wrote a third time I was quickly told Mrs Trevelyan could not get involved as I had cited a home address outwith her constituency.

This morning, following the confirmation that Parliamentary Review had been passed off as a UK Government production I asked Mr Lamont to provide a comment by 4 pm. An automatic reply was received from the MP stating "I receive a large number of emails, letters and phone calls each day. I will try to reply to you as quickly as possible."

There had been no further contact from Mr Lamont or his staff by 4.30 pm today.

Avocet chairman responds to 'disingenuous articles'

by DOUG COLLIE

Following our recent articles charting the virtual destruction of James and Linda Christie's Ballinteer Farm in Northern Ireland following Avocet Infinite's ill-fated business partnership with them, Not Just Sheep & Rugby invited Avocet chairman Martin Frost to respond.

The Christies claim to have lost hundreds of thousands of pounds after Avocet ordered the demolition of their farm steading to make way for a 'cow palace', an anaerobic digester plant and other green energy facilities. We asked Mr Frost to address issues surrounding Avocet's activities in Ulster and sent him a number of specific questions.

Tonight Mr Frost sent us his response which we publish in its entirety.

The head of Avocet Natural Capital PLC  wrote: "I thank you for the curtesy (sic) of offering me and Avocet an opportunity to answer the many, many strange if not disingenuous articles you have published on your blog concerning me and Avocet. 

"I shall not dwell on the Data Breaches and for legal reasons I shall not go into a series of ping pong replies particularly as legal action is pending against Mr. David Liddle, Mrs. Aileen Orr, Mr. Tristan Jeffrey, Mr. Sandy Jeffrey, Mr. Neal Thompson, Miss Sarah Shotton and possibly Mr. James Christie (there is some doubt if Mr. Christie is mentally impaired). Quite obviously there has been a considerable breach in Avocet’s NDAs and from your own published articles it is clear from whence your information has come. 

"Anyhow for your edification I enclose two intellectual property articles published by Coller IP in November 2018 which update the unpublished 2016 draft IM you recently referred to. As I noted on Friday 31st July to colleagues: ‘Yesterday’s patent and know how meeting at Basck (Avocet’s patent agents in Cambridge) went much better than I had expected. Avocet despite all the financial hassles has managed to retain salient patents and more importantly know how upon which new patent sub families can be built.

"True we have lost some territorial priority dates but nothing that cannot be rebuilt and enlarged – and indeed it was questionable whether Avocet should have kept such a huge scattergun world approach.

"To keep and retain some of our basic rights Avocet needs to find some £50k by September end and to enhance existing a further £150k. To develop Avocet’s knowhow and build new patents around existing knowhow further funding will be required – possibly as much as £300k but then based upon the same logic and trends of the 2018 Coller IP valuation, Avocet could expect its patent portfolio and know how valuation (based upon potential income stream) then to amount to £150 to £800 million. 

"As matters currently stand – Avocet’s IP (patents & knowhow) is housed in Avocet IP Limited (a subsidiary of ANC Plc) with Avocet IP Limited and ANC Plc making up a Corporation ‘Patent Box’ to which a reduced rate of tax is applicable – such being necessary when cash input to derivable cash output is factored in. 

"An example being the proposed xxxxxxxxxxxxxxxx  (a world beating fuel) which will require but another £100k or expenditure to secure full patentability but following successful trials on its own could be valued at £200 to £500 million. Note: the old ICI and now Avocet’s family of ‘avocet’ fuel additives are under new regulations (hence our current delay to market) are reclassified as explosives which carry transport restrictions. 

"The new proposed xxxxxxxxxxxxxxxxxx would not have these transportation problems – and hence Avocet will have a vehicular fuel cheaper than fossil oil and cleaner than electricity.

In agriculture, Avocet’s patent family around ‘hydroponics’ remains very robust – with much IP in the world beating category for new methods of food production. Notable, as prior mention are ‘Avocet’s enhanced growing techniques for fodder and fodder hay: ‘grain replication’: and those pertaining to ‘plant derived meats’ to replace traditional livestock farming.’ etc.

"In short, despite all the recent woes, Avocet is in a stronger place than before, and many a right thinking person would consider that your approach should be to encourage Avocet to retain a Scottish position rather than encouraging naysayers to drive Avocet away.

"In conclusion, do you or your compatriots know how many patents, trade secrets, and knowhow Avocet has? Perhaps, you should enquire – for in answer, Avocet holds an extremely valuable IP portfolio which many a multinational would love to have. In truth, your articles along with those of your follow naysayers prism but 1% of what the Avocet concept is."

Mr Frost also attached two documents to his email which we will read tomorrow.

Avocet 'wonder' fuel and the world oil price

by EWAN LAMB

The repeated delays in the launch of the 'revolutionary' Avocet methanol fuel as a replacement for petrol and diesel means any attempt to market the product now would prove to be uneconomic following the collapse of world oil prices, according to at least one business expert.

A set of figures included in a 'Strictly Confidential' Information Memorandum (IM) which was sent to wealthy potential investors from October 2016 onwards indicated the substitute fuel being developed by Avocet Infinite plc would be competitive as long as oil prices were at $58 per barrel or above.

The memorandum seen by Not Just Sheep & Rugby added reassuringly: "Whilst oil prices are currently below this level, the five year average is $87.15 and the 10 year average is $84.257 ". 

But the global pandemic coupled with a worldwide recession which could last for several years has driven oil prices down in spectacular fashion. Currently the WTI (West Texas Intermediate) crude oil price, which is regarded as one of the main global benchmarks, is hovering at around $40 dollars per barrel.

Many of the 650 investors in the Avocet group of companies were undoubtedly attracted by the directors' plans to resurrect a form of fuel pioneered by ICI more than 30 years ago but abandoned on grounds of high production costs. Now, the failure to manufacture and marked 'avocet' fuel is said to be causing a great deal of frustration and anxiety among shareholders.

The recent liquidation of Avocet Infinite (now called Omega Infinite) with a replacement shares 'enhancement' in Avocet Natural Capital plc is just one of the recent developments in the Avocet story.

But following the Avocet Infinite prospectus of 2016 the number of investors increased from 118 to 376 just a year later before another significant rise to 605 by November 2018. By that time the list included several names with individual stakes of up to a million £1 shares and more.

There was no indication given back in 2016 that the Avocet fuel would still not be available in the second half of 2020.

Here's what the original IM had to say: "Any competition (to traditional fuels) faces considerable hurdles in terms of taxation, sympathetic regulation, infrastructure and available proven technology. These factors, while daunting, can be overcome, initially in niche markets (such as UK biodiesel), provided there are cogent reasons for adopting a new fuel. Another potential solution to quicker market entry would be to partner with large oil and gas producers.

"Whilst the availability of Avocet additive is expected to contribute to significant market growth for methanol as a transportation fuel, a static analysis in 2015 would mean that there was a potential market of 22 billion litres of methanol transportation fuel, which would provide a £100 million a year licence and royalty opportunity (at 1p per litre of diesel equivalent)."

And would-be investors were also told: "Income starts in Quarter 4 2017 and is forecast at the minimum production of 10,000 tonnes in the first year, increasing to 100,000 in year two, 400,000 in year three and 1,000,000 tonnes in year four onwards."

There was still no sign of any Avocet fuel being distributed by July 2019 when Avocet Infinite chairman Martin Frost issued a letter to the hundreds of shareholders, telling them: "Eureka - The long avocet additive wait is over: land, maritime and aeronautical markets now beckon!

"Some 50,000 plus litres of ‘avocet methanol’ diesel replacement fuel will become available in November 2019. From January 2020, daily some 250,000 plus litres of ‘avocet methanol’ diesel replacement shall be forthcoming.  In 2020, Avocet Natural Capital Plc expects that it will facilitate the sale of some 300 million litres of ‘avocet methanol’ diesel replacement fuel."

However, it appears 'lift off' has been postponed yet again. 

Profit and loss financial projections issued in the 2016 IM promised total revenue from all Avocet activities, including agriculture, of £8.729 million in financial year 2017 soaring to £122.9 million by 2020.

Other seemingly impressive forecasts included Avocet fuels revenue of £96.8 million by 2020 and £176 million in 2021. Avocet Infinite cash balances were predicted to be £2.571 million in 2017, £89.47 million in 2020 and £224.595 million in 2021.

Outlining the investment opportunity, the document claimed: "To date, Avocet Infinite plc has issued 10.91 million £1 shares from friends, family and the angel community which, alongside debt of £3.25 million, has provided capital for R&D investment into the three divisions as well as also being used for the acquisition (subject to conclusive missives) of  433 acres of prime Scottish Borders farm land and buildings (recently valued by Strutt & Parker at £5 million).

"The current opportunity to invest is in a new funding round totalling up to £5 million, taking the total capitalisation of the group up to £15.9 million. It is intended that this will be the last opportunity to purchase shares at £1 each, with a significant future revaluation towards the end of 2016 given the technical and commercial progress of all three divisions."

A business analyst told us: "Based on the break even figure of $58 for a barrel of oil which appeared in the IM there does not seem to be any realistic chance of the long-awaited new fuel being competitive in present day markets. And with the oil price expected to remain way below average for the foreseeable future the outlook for mass conversions to methanol must be fairly bleak".

Brent crude oil prices will average $33.04 per barrel in 2020 and $45.62 per barrel in 2021 according to the most recent forecast from the US Energy Information Administration (EIA).