MetalstreamI am just hoping somebody will actually poke holes in the information I have reviewed after reading through the 120 page Metalstream PP Memorandum.
Metalstream states they have issued 2.8 million tokens at a value of $32 = $89,600,00 value to be raised.
Each token is worth 1g of certified gold bullion. Current value of each token (@62.217/g) = $174,207,600
This is a 49% discount to spot.
They give the impression that all of the issued tokens are backed by 2800kg of purchased gold that is held by certified brokers in vaults around the world.
In reality the value of each token is backed by the (3) forward purchase agreements made with GYA,CSQ and ALTA.
None of these companies have any gold produced. And there is a possiblity that none of this gold will come out of the ground in the near term (CSQ is 10 years from production, GYA has no assets, Alta is the only one that is approx. one year away from producing but currently dependant on Metalstream's money)
Every token is redeemable after 90 days.
Why would somebody not purchase all 2.8 million tokens and then merely redeem them after 90 days for almost double your investment.
Or is this actually what the the group of Brix International, Blockchain Labs, Sonata Capital, Enegra, etc.are actually planning on doing?
The reason behind the "private placement" is because they are not allowed to sell tokens to anybody except for "accredited investors". This is how they skirt all the securities regulations. They are not allowed to issue securities pretty much anywhere.
The redemption process has so many loopholes in it I believe they can pretty stop anybody from actually redeeming gold (which they don't even have in a secured bullion vault, it is in the ground).
The fact that the funding to Canamex is not an arm's length transaction is extremely questionable and I not sure of the actually legalities (in Canada) of this type of funding?
I spent an hour (it was raining) and reviewed all the token transactions this consortium has been making on Ethereum and I cannot find any that are outside of the group. All tokens have $0 value. There seems to be about $10,000 or so that has been shuffled around to provide "Gas" money for performing all of these transactions. There are actually quite a few that have run out of "gas" money and the transactions failed.
Help me out here.
This is not about ALTA,GYA, or CSQ. This is about trying to sort the group out that has been around for almost three years and has no financials and is not regulated by any security body. Even Labaun Financial accepts no responsibiltiies to the company's actions.
Thanks in advance