GreenChek Technology Inc. (GCHK) company history: the story so far

History

GreenChek, formerly Ridgestone Resources, licensed emission-reduction patents in 2008, relied on small, heavily dilutive financings, and deregistered from SEC reporting in 2014.

2008-2009: The patent licence and a promised funding deal

The company, then called Ridgestone Resources, Inc., signed a licence on July 14, 2008 with China Bright Technology Development Limited. It covered hydrogen-based vehicle emission-reduction patents for the EU and US. The price was $3,500,000 in instalments, from $300,000 on August 13, 2008 to $1,200,000 by August 31, 2009. The company also had to issue China Bright stock worth 60% of its total outstanding shares, which would heavily dilute existing holders. The board voted to rename it Greenchek Technology Inc. The filings do not say whether the fee or the stock issuance was completed.

In September 2009 GreenChek signed agreements with Bodie Investment Group Inc. of Michigan. Bodie was to buy $6,000,000 of common stock at 90% of market price, with a $0.05 floor. Bodie did not have to buy anything until the shares and warrants were registered with the SEC, so the funding was never assured.

2010-2011: Restatement, control and convertible debt

In April 2010 management found that three share issuances had been left out of its unaudited financial statements: 3,000,000 shares to Gold Spread Trading, 3,000,000 to Bodie and 2,000,000 to Global Eye Professional Advisors. The earlier statements could no longer be relied on, and restated results were planned. No restated filing had been seen by the latest record.

In May 2010, 35,000,000 shares came back from former CEO Pardeep Sarai, leaving 64,046,666 shares outstanding. In September 2010 the company issued 10,000 Series A preferred shares to Lincoln Parke, its sole officer, for services. Each carried 4,000 votes, giving Parke 53.51% of the votes.

Funding came from Asher Enterprises convertible notes, which can be turned into shares at a discount to market price. A second note for $39,000 was sold in December 2010 at a 45% discount, steeper than the first note's 38%. Asher also took over $137,500 of an older note and converted it into 15,400,000 shares at $0.00077 to $0.00711, with no cash raised.

2014: Deregistration

The record is quiet for the following years. On May 20, 2014 GreenChek deregistered its securities, ending its obligation to file reports with the SEC.

Written from the 6 story beats below (2008 to 20 May 2014), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

2014

20 May
GreenChek Technology Inc. deregistered its securities, ending its obligation to file reports with the SEC.
listing compliance notice

2010

16 Dec
On December 8, 2010 GreenChek sold Asher a second convertible note, $39,000 (net proceeds $36,500), due September 10, 2011 at 8%, convertible at a 45% discount to market, a steeper discount than the August note's 38%, with no prepayment right. The filing also reports that Asher took over $137,500 of principal on the earlier unsecured convertible note held by Gold Spread Trading, Vienna Management and Quartermaine, Asquith & Associates (originally $550,000, reduced to $250,000), and converted it into 15,400,000 shares at prices between $0.00077 and $0.00711. The company received no cash from those conversions beyond the debt reduction.
capital raising announcement
30 Sept
On September 29, 2010 GreenChek created Series A Preferred Stock and issued 10,000 shares to Lincoln Parke, its sole officer and a director, for services. Each share carries 4,000 votes, giving Parke voting rights over 53.51% of the company, and the company can redeem the shares for $10.00 each. Control of shareholder votes now sits with one person, though common holders keep their economic holdings.
capital raising announcement
27 Apr
On April 12, 2010 management found that three share issuances were left out of its earlier unaudited financial statements: 3,000,000 shares to Gold Spread Trading (a $90,000 financing fee under a $100,000 loan agreement), 3,000,000 shares to Bodie (another $90,000, from the 2009 Bodie agreement), and 2,000,000 shares to Global Eye Professional Advisors (a $60,000 expense). The earlier statements can no longer be relied on, and restated results for the quarters ended August 31 and November 30, 2009 are planned. No warrant cost is booked for Bodie until it advances a $100,000 loan.
financial restatement

2009

1 Oct
On September 30, 2009 GreenChek entered a stock purchase agreement (dated August 25, 2009) and a registration rights agreement with Bodie Investment Group Inc. of Michigan, under which Bodie is to buy $6,000,000 of common stock at 90% of market price, with a $0.05 floor price. GreenChek must issue Bodie 3,000,000 restricted shares plus cashless warrants for 9,000,000 more. Bodie need not buy anything until the shares and warrants are registered with the SEC, so the funding is not yet assured.
material agreement

2008

16 July
Filing under the earlier name Ridgestone Resources, Inc.: on July 14, 2008 it signed a licence with China Bright Technology Development Limited for hydrogen-based vehicle emission-reduction patents, covering the EU and US, for $3,500,000 in instalments (from $300,000 on August 13, 2008 to $1,200,000 by August 31, 2009). It must also issue China Bright common stock worth 60% of its total outstanding shares, which would heavily dilute existing holders. The board also voted to rename the company Greenchek Technology Inc., subject to shareholder approval.
material agreement