£285 million offered for invisible patents

'Son of Avocet' never owned any intellectual property

by OUR INVESTIGATIONS TEAM

In May 2022, the 290 shareholders with stakes in Gennfros Ltd., successor to the insolvent Avocet group, were told in a missive circulated by company life president Martin Frost that "Israeli friends" had offered 1.2 billion shekels [£285 million] for the portfolio of patents and intellectual property applications held by the business.

And just two months earlier investors had been assured: "A deal has been concluded with a foreign government that has agreed to pay £400M for all of Gennfros' intellectual property". 

Now, research using the files of the patents office and other intellectual property records show that all of Gennfros's patent applications were terminated on March 23rd 2022 - before the paperwork was even published.

Five months later, in August 2022 the renamed Genfro Ltd - the name change was approved by management on June 27th 2022 - lodged applications for the same four methods with the UK authorities. But these were never approved either and the process for each was terminated in January 2024, again prior to publication. 

Here's what the records show for each of the applications:

GENNFROS LTD.

1 – Apparatus and method for alcohol-based fuel production. Filed Gennfros 29/10/2020. Status: CEASED. Application terminated before publication 23/3/2022.

2 – Fuel, fuel additive and method. Filed Gennfros 27/10/2020. Status: CEASED. Application terminated before publication 23/3/2022.

3 – Livestock feed production arrangement for generating feed for livestock. Filed Gennfros 16/10/2020. Status: CEASED. Application terminated before publication 23/3/2022.

4 – System and method for producing glycol dinitrate. Filed Gennfros 30/9/2020. Status: CEASED. Application terminated before publication 23/3/2022.

GENFRO LTD.

1 – System and method for producing glycol dinitrate. Filed Genfro 23/8/2022. Status: CEASED. Application terminated before publication 31/1/2024.

2 – Fuel, fuel additive and method. Filed Genfro 23/8/2022. Status: CEASED. Application terminated before publication 31/1/2024.

3 – Apparatus and method for alcohol-based fuel production. Filed Genfro 23/8/2022. Status: CEASED. Application terminated before publication 31/1/2024.

4 – Livestock feed production arrangement for generating feed for livestock. Filed Genfro 23/8/2022. Status: CEASED. Application terminated before publication 31/1/2024.

On that basis, it is difficult to comprehend how the four incomplete applications could have commanded valuations ranging from £50 million to £400 million, as claimed at various times by Mr Frost or by the mysterious Tim Carter, head of the equally enigmatic PCH Holdings.

A contact who assisted with our research reminded us of three separate communications from Gennfros management (or Carter) setting out different values for intellectual property.

Our source told us: "On November 16th, 2020 we were told in a Gennfros email signed by Paul Newsham (a director of the company between September 2020 and August 2021) that 'Gennfros Limited’s worth is focused on families of newly created intellectual property with a current anticipated net worth more than £150 million pounds.'  

"On December 28th, 2020 we were told by Martin Frost that, 'Gennfros Limited’s main asset is its intellectual property which centres upon patent families of which those that relate to methanol are perceived to be worth some £150 million.

"On January 12th, 2021 Frost wrote 'Gennfros Limited’s new intellectual property shall be subject to an independent valuation in April 2021. Given the huge interest in the non-explosive methanol additive, it is hoped that such valuation shall exceed £200 million.”

We also came across correspondence from Gennfros directors which boasted: "I confirm that Gennfros will shortly have over 30 new patents (mainly UK) though none is likely to be as valuable as:GENN01GB (Non-explosive) GB Application number: GB2015514.9 Filing date: 30.09.2020 which enables a non-explosive green fuel which is cleaner and cheaper than electricity and has an independent assessed value in excess of £150 million."

GB2015514.9 is the application included above - System and method for producing glycol dinitrate - which hit the buffers only weeks after receiving that £150 million price tag.

And as we reported, on May 5th 2021, after the quartet of Gennfros patent applications had been abandoned, Mr Frost circulated the text of a letter said to have been sent by Carter to then Business Secretary Kwasi Kwarteng, requesting anonymity for PCH Holdings.

The letter included this claim by 'Carter': "Presentably, PCH has funded four provisional patents of which one for a non-explosive methanol additive to allow green methanol to become a clean replacement diesel is the most valuable. PCH is about to fund a further 30 more fuel and agricultural patents which should result in Genfro Limited becoming a £200 million IP company."

Our inquiries proved that this, like the patent valuations, was a work of fiction.

Mr Kwarteng's Ministry told us in September 2021: "Thank you for your emails to the Enquiry Unit, about matters surrounding investors in Genfro Limited. I have been asked to reply and apologise for the delay in doing so, it has taken time to undertake the comprehensive search of our records required to accurately respond to your enquiry. 

"You asked whether the Secretary of State had been approached with a view to securing anonymity for certain investors in the company and, if so, whether such anonymity had been granted. We have searched our records and can confirm that no approach in such terms has been received by the Secretary of State."

Undeterred, a news letter was issued in October 2021 which declared: "Many Avocet shareholders are benefitting from their new 2021 investments into Genfro Limited. Genfro has developed new intellectual property in conjunction with a conceptually new share trading platform. Many believe that the share value of Genfros will well exceed their past expectations with Avocet Infinite Plc."

Sadly, as the patent office records confirm, this 'new intellectual property' turned out to be as worthless as the Gennfros collection.

Soon after the Genfro patents were terminated in January of this year, the company's other joint life president Dr Bob Jennings applied to Companies House to have the business struck off the register and dissolved.

That request was suspended by the Registrar in May after an objection was received. There have been no further published developments since.

NEXT: WHATEVER HAPPENED TO AVOCET IP AND AFS VENTURES PATENTS?