A new email from the Action Group was sent out with some details on the court case with Volkov. Looks like he is going for full costs.
Update on Court Case - VVV Technology Vs LWP Technologies
LWP Technologies is currently in the middle of a Supreme Court case against VVV Technologies over the failed GraphenEra Joint Venture.
Court Case Update
Lawyers for Volkov have recently lodged an application in the Supreme Court for:
– the original application from LWP seeking the cancellation of 30 million shares and compensation for project expenditure be thrown out
– LWP pay costs and incidentals for Volkov
– Such other Orders as the court deems appropriate.
So Volkov is seeking that LWP pay full costs for this court case and has a good chance of succeeding given the serious concerns raised by the judge from LWP Technologies handling of this failed Joint Venture.
The Shareholders Agreement was signed by Siegfried Konig and Sean Corbin when they were not directors of GraphenEra thus not authorised to sign the Agreement. This led to funds for the JV being paid direct into Volkovs personal bank account due to them not being able to open an account under the GraphenEra banner.
Previous LWP Action Group updates on the Court Case:
Continuing on from our previous post, Siegfried Konig and Sean Corbin were also involved in a few other business ventures
Telco Australia
Telco Australia was founded by Siegfried Konig in 1992 and expanded to over 1,000 employees before its IPO listing on the ASX in December 1998 with a Market Cap of approximately $13 million. The company started out well making a profit of around $1 million in its first year and $6.2 million the following year with a peak share price of $1.35 in April, 2000. This golden period was right in the middle of the dot-com boom – a historic economic bubble and period of excessive speculation that occurred roughly from 1997 to 2001.
In 1999, GPS-online.com was listed on the ASX in which Telco Australia had a strategic investment and Siegfried Konig was also a director of.
Shares in the group, which was developing global positioning system technology for logistical monitoring and other applications, were issued at 40¢, debuted at 58¢, traded to a high of 62¢ and closed their first day at 50¢. But it was a roller-coaster ride thereafter and after the tech boom went bust it was all downhill, at one point close to oblivion. The shares bottomed at 1.4¢ each.
GPS Online staged a remarkable recovery after Siegfried Konig was ousted from the board and Robin Levison, a Kiwi former accountant turned investment banker and broker, took over.
In late 2001 Extraordinary General Meeting was called by shareholders to remove Siegfried Konig as a director which was followed by a series of legal issues from both parties.
In August 2001, Telco Australia responded to media speculation feverishly denying that is had changed its core business activities being the carriage of voice and data traffic from the United States to South East Asia and as a strategic investor in established companies), nor is there any present intention to do so. Just a few weeks later however, Telco Australia announced a $500,000 investment in Future Group, a company specialising in the supply of communication, imaging and IT, as well as an investment in Bio-med company Cooee Products, beginning the process of changing from its core activities as reported in the Financial Review earlier. It also made a $600,000 investment in China Investments Limited, a profitable company involved in the publishing, as well as retail and wholesale selling, of new and second hand books, rare and collectable books, and journals.
Telco Australia formally changed its name to Future Corporation in August 2002 reflecting its operations as an investment company specialising in technology and biosciences.
There was no honeymoon period for investors.
Future Corporation announced an investment in a Timber Production company in mid 2003 and also sold its stake in China Investments for just $106,419. Later that year, they sold their stake in Future Group for a loss of $527,000 which is more than the amount originally invested. Siegfried Konig announced his resignation in mid 2003, a stunning fall from grace from his time at the helm of Telco Australia. From here, Konig’s next venture was King Equipmentfrom 2005 – 2008.
Sean Corbin came on board as CEO of Future Corporation in June 2003 with the share price at 1.1c and the company underwent a 10 to 1 share consolidation in December 2003. The company changed their mind and decided to no longer be a timber production company in mid 2004, writing off over $350,000 in the process. 2005 saw the beginning of a string of ASX compliance issues with the company being placed on Monthly Cashflow reporting requirements following serious concerns raised following the release of the companies Half Yearly Accounts.
Sean Corbin stayed at the company until December 2006 when he announced his retirement – The share price at the time was 0.6c. Factoring in the haircut given to shareholders by way of 10:1 consolidation, this represents a 95% destruction of company value during Corbin’s time at the company.. During this time, Corbin was also involved in the failed King Equipment before moving on to take Allied Brands into administration. Konig went on to serve as director with Vecor Australia before moving on to EcoPropp and LWP Technologies.
Integrated Investments is also another interesting that bears the hallmarks of a Siegfried Konig company.
Listing as Technology Licensing Limited at 50c in December 1999, Siegfried Konig was both non-executive director and his other company, Telco Australia, was the largest shareholder.
These companies seem to have played hot potato with a future Konig/Corbin company – Future Corporation – in the years that followed. Technology Licensing acquired a 75% stake in Future Corporation in June 2000 for $1.08 million in cash and shares.
In July 2000, Konig’s Technology Licensing undertook a $1 million placement to Konig’s Telco Australia to help facilitate the acquisition of Future Corporation. Fast forward to July 2001 and the company changes its name to Captech Group. The share price at the time is 12c, a 76% loss for IPO investors. In October 2001, Konig’s Telco Australia purchased a 50% stake in Future Corporation from Konig’s Captech Group for $500,000 – a loss of $200,000 on this investment.
In September 2003, the company again changes its name, this time to Integrated Investments. Now the share price has dropped to just 1.2c. A loss of over 97%for anyone still hanging around from the IPO days. In December 2003, Future Corporation (previously Telco Australia) sells its stake in Integrated Investments for $238,241 a loss of over $1 million on the investment.
Siegfried Konig resigned from his directorship in February 2004 with the share price at just 1c. A loss of over 98% during his time.
LWP Price at posting:
0.1¢ Sentiment: None Disclosure: Not Held
