aptly named however brown river sounds better, page-4

Limbo stock, how low can it go?

Zohar pushing Eagle Nickel now. Fingers in quite a few pies. Does he do well enough off startups and not too concerned about seeing them through.

Found this, old but interesting

Promoter back in spotlight
MICHAEL WEIR
1 December 2005
The West Australian

Australia's corporate watchdog is investigating a fresh complaint about company promoter David Zohar, less than three months after the Red River Resources director was hit with a permanent injunction that prevents him operating an unlicensed financial services business.

The complaint centres on letters sent by the former Fortuna Gold boss to shareholders of Red River and other related companies offering seed capital in another venture, Greenpower Products, of which he is also a director.

The move comes during a turbulent week for Red River which has seen the resignation of two directors, including the chairman, after they raised concerns about lax corporate governance.

The Australian Securities & Investments Commission refused to comment yesterday but it is understood the regulator is reviewing the complaint.

Mr Zohar's Greenpower letter invited prospective investors to buy $20,000 of seed capital at 10 a share, saying a prospectus was being prepared to float the company mid-next year at 20 a share.

"You are probably aware seed capital investors in Red River bought shares at a big discount to the issue price in the prospectus leading many who sold on ASX to make profits of 250 per cent or greater," he wrote.

In September, ASIC obtained a permanent injunction, by consent, against Mr Zohar and his private company, Swancove Enterprises Pty Ltd, stopping them from trying to sell shares without an Australian financial services licence.

ASIC found Swancove sent unsolicited letters to more than 55,000 people offering shares in Red River and two other Zohar-related companies, Corella Oil and Australian Biogen.

Mr Zohar told WestBusiness yesterday he had done nothing wrong because the letter had been sent on Greenpower letterhead, not by Swancove. He was also able to use the Red River share register to source investors for Greenpower because he was a director of ~both.

"As far as I know if someone has subscribed to your company of which you are a director, you are entitled then to ask them for subscription to another company of which you are also a director," he said. "Cold calling is not acceptable."

Red River chairman Alan Flavelle quit the board of the explorer, which listed in July, at the end of Monday's annual meeting and was closely followed by non-executive director and former TV newsreader Peter Waltham.

A copy of his resignation letter, seen by WestBusiness, said he had resigned because of the "continual and ongoing difficulty I have had in maintaining within the board an acceptable level of corporate governance".

He said executive directors who were also major shareholders objected to his efforts to improve corporate governance and threatened to vote him off the board at the annual meeting.

Mr Waltham's letter said he quit on the back of Mr Flavelle's resignation and also because "I found I could not work with one of the executive directors".

Red River managing director John Karajas, who together with Mr Zohar are the company's two biggest shareholders, said some corporate governance issues "could have been handled better" regarding a proposed joint venture deal on Red River's Bungalow Well uranium project with a company connected with the two executive directors.

But he said "a fairly substantial part of our shareholder base" was not impressed with the two ex-directors and preferred they resigned.