Can someone explain why they believe the investment into VSTA from BGMO will actually happen?In 2009, BGMO executed an agreement with an offshore party whereby the income from a high yield investment program would be remitted to BGMO for its investment purposes. Subsequent to this, BGMO announced that it is acquiring a 60% interest in GreenSafe. This target company was in the desired business space that BGMO wants to be in - green and clean. In early 2010, it was announced that the timing of the closing would be deferred. None of the series of planned payments were made
In 2013, BGMO executed an agreement with an offshore party whereby the income from a high yield investment program would be remitted to BGMO for its investment purposes. Subsequent to this, BGMO announced that it is acquiring a substantive interest in VSTA. This target company was in the desired business space that BGMO wants to be in - green and clean. In mid-2013, it was announced that the timing of the closing would be deferred. As of today, none of the series of planned payments were made.
Other than changing the dates and the name of the target companies, nothing is different. So, lets dig a little deeper!
Both GreenSafe and VSTA required millions of dollars to develop or rollout their respective business plans. The only difference that I can see is that GS would be putting the money into hard assets whereas VSTA would be putting the money into development.
Both companies appear to have extraordinary high returns. The GreenSafe website did report that they could make up to $ 50k in revenue per operating hour. I can't find anything on the potential revenue on the VSTA side but it must be substantial to warrant the investors.
Both companies have experienced management. The GreenSafe website from the time of the BGMO investment did indicate that the management had amongst them 2 professional designations and 6 university degrees. From what I can see on the VSTA website, the numbers are in the same ballpark.
Both companies were shown extensive reams of faxes and contracts for funding. GreenSafe's agreements with BGMO and BGMO's agreements with the funder have for the most part been hidden from the BGMO investors. On the VSTA side, the VSTA agreement with BGMO appears to be hidden from the BGMO shareholders. The agreements between BGMO and its funder are protected by non-disclosure agreements. In a few of the documents, some are redacted and others just don't make sense.
Can we expect that BGMO will come good on VSTA?
Based on prior history with the same BGMO leaders at the helm, what is materially different that would assure a success?
Signed,
A frustrated BGMO shareholder in Buffalo!
