There’s nothing quite as icky as wading through the small end of the Australianlisted equites market, where cash-desperate hucksters and tight shareholder registers meetHotCopper pump and dump[https://www.copyright link/companies/mining/dummy-bids-part-of-fun-hotcopper-trader-guilty-ofmanipulation-20220607-p5arr9]enthusiasts.In this vein, ASX-listed “wellness” penny stock Wellfully was suspended by theexchange on Tuesday until it meets the requirement to have suffi cient directors onits board.Coincidentally, the suspension was granteda day after we explored the company’sinexplicable [https://www.copyright link/rear-window/bad-stench-wafts-in-from-wellfully-20221114
Perth broker CPS Capital’s wild coincidencesMichael RoddanNational correspondentRear Window The job appears to wholly consist of lurking on gruesome online forum HotCopper.Virginia issuing of shares and options to an entity called Dyamond Trading andConsulting, ostensibly for “investor relation services, including social and businessmedia”. Also known as lurking and posting on gruesome online forum HotCopper.Dyamond’s directors conscripted for the enviable task areKrystal Hatzipapas(aNational Australia Bank valuer) andSavva Hatzipapas(a fruiterer), who are the children ofGeorge Hatzipapas, a HotCopper afi cionado and the bankrupt formerchair of delisted ASX minnow Zyber, ground zero fora series of highly irregularpayments [https://www.copyright link/rear-window/zyber-loans-executive-director-550k-has-33k-inthe-bank-20190812-p52gau]under his watch.His wifeArgiroula Hatzipapasis the remaining director of GAKS InvestmentHoldings (GAKS is an acronym of the Hatzipapas clan’s names), which fell intoliquidation this year owing about $300,000 in legal fees and judgement debtsrelated toa civil lawsuit that accused George of misappropriating investor funds [https://www.caselaw.nsw.gov.au/decision/5cb566a0e4b0196eea40624f].Separately, a series of alleged breaches of the law at GAKS, including suspectedinsolvent trading for more than a decade, have been reported to the AustralianSecurities and Investments Commission.What’s interesting, however, is that the issuance of shares to Dyamond by Wellfullycoincided with a recent $2.3 million placement led by Perth stockbroker CPSCapital, which sloshes around the speculative end of Australia’s small-cap market.
It would be mighty strange if CPS Capital, led by managing directorJasonPeterson, wasn’t familiar with the Brisbane-based Hatzipapas family, given the wild coincidences on offer. In fact, some may cynically believe CPS Capital has agood reason to snuggle up to Dyamond and GAKS, given the incentives are oftenneatly aligned.Take, for instance, the ASX-listed pot stock Zelira Therapeutics, where Petersonwas a director from 2016 to January this year (he was paid $7000 in capital raisingfees in FY21, after CPS Capital led a $4.6 million raising for the company).Curiously, in 2019, GAKS Investment Holdings was issued 2 million options “forinvestor relations services” to Zelira. The company’s annual report showed that asof August this year, GAKS had 11,429 options left.Or how about Western Australian gold explorer Surefi re Resources, where GAKSwas the thirteenth-largest shareholder at the end of FY20, with 7.5 million sharesand 3.75 million options. CPS Capital, at the same time, held 55 million unquotedSurefi re options (the stockbroker underwrote its 2020 capital raising). In 2022,Peterson fi led a substantial holder notice showing his 6.16 per cent stake inSurefi re.Then there’s ASX-listed copper vehicle Valor Resources, for which CPS Capitalraised $800,000 in 2020. Valor’s 2021 annual report showed Peterson held a 5.5 percent stake in the company, while GAKS held 25 million unlisted options.Oh wait, there’s also Odin Metals, another ASX-listed copper play. Peterson’s initialsubstantial holder notice in 2020, detailing his 6.4 per cent stake in the company,pairs neatly with Odin Metal’s annual report that year, which noted GAKS held twotranches totalling 2 million unlisted options.Or just take a peek at WA gold and nickel explorer Estrella Resources, for whichCPS Capital raised $1 million in August 2020. Celtic Capital, a private fundsmanagement company run by Peterson, was listed in its 2021 annual report as thelargest shareholder with 18 per cent of shares on issue. Not far behind was GAKS,holding 5.1 million shares, or 2 per cent of the company.Celtic Capital, by the by, was shown to hold the most unlisted options in Wellfullyin February this year, or roughly 40 per cent of the issued options, almost threetimes as many Wellfully options as held by CPS Capital. Still, there was GAKS,retaining 1.5 per cent of the options. Last month, CPS Capital was the lead manager for ASX-listed rare earth operatorVoltaic Strategic Resources’ $4.5 million raising. Peterson subsequently popped onthe register with 8.9 per cent of shares. Prior to that raising, Celtic Capital held 2per cent of shares, while Dyamond Trading and Consulting owned 1.2 per cent
PIL Price at posting:
1.1¢ Sentiment: Hold Disclosure: Held
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