BRIEF: Global Remote Technologies – Seriously, what?

Global Remote Technologies (CSE: RGT) is an organization focused on emerging technologies in the energy sector. Well, at least that’s what their write up on the CSE indicates, as well as their website. However, their website hasn’t been updated in well over a year. And with their latest three news releases, it has several people asking the question of “seriously, what?”

Like numerous other companies, Global Remote Technologies was hammered hard in late 2015, and throughout 2016 as a result of low oil prices. Although this downturn wiped out many companies, RGT was able to hang on by the threads and remain trading.

In early 2017, it was issued a cease trade order as a result of delayed financials, which the company could not issue due to lack of funding. They persevered, and managed to get the documents submitted a month later. A news release shortly followed, indicating that there were potential new contracts in the works. Later, at the end of August 2017, they announced a new director that had potential contacts in the industry. Again, new potential contracts were mentioned in a release not even a month later.

Then, investors were sideswiped.

On November 2nd, 2017, Global Remote Technologies issued a significant news release. Essentially, it was flipped upside down. The CEO, CFO, President, and two additional directors had resigned, effective November 1st, 2017. In their places, a new CEO, a new CFO, and a new director were all named, all of whom were new to the organization.

This initial release was then followed by a second, which had several financial details within it. First, Global Remote Technologies had settled $1.5M in debt through the issuance of approximately eleven million shares. Then, it issued 4,000,000 warrants to officers, directors, and consultants to “acquire ongoing services.” These warrants have an exercise price of $0.24. Finally, 1,000,000 in stock options were granted to officers, directors, and consultants with the same exercise price as that of the warrants.

Next came the explosive release.

Lastly, is the news release that was issued on November 6th, 2017. This is the release that threw long term investors a curve ball like no other. It read as followed:

Global Remote Technologies' November 6th, 2017 news release.
Global Remote Technologies’ November 6th, 2017 news release.

Undoubtedly, long term investors were thrown for a loop. Right at a time when oil was beginning its rebound, the organization had decided to do a complete 180 degree turn and change its business entirely. Rather than stay invested in the oil and gas sector, the new management elected to issue a news release that contained three hot buzzwords – blockchain, cryptocurrency, and fintech, which effectively changed its operating sector.

With the release of this news, short term investors looking to make a quick buck swarmed in. In the month of November, Global Remote Technologies has gone from $0.17 on the 1st of the month, to as high as $0.49. The best part? The company hasn’t even signed a thing. It simply implied that it was looking to make an acquisition. This has created a perfect scenario for new management to make themselves a quick buck as well. For this reason, Canadian Insider will be watched very closely over the course of the next few days.

As it stands, this company consists of absolutely nothing but “potential” future deals. Yet, this was enough to open the flood gates to investors. As a result of these three buzzwords, RGT has been sent soaring to new heights, proof of how inflated this current bull market is.


Now, to be fair.

For those that actually take the time to read the SEDAR documents published by companies, you’ll be aware of a few things. First, is that the approximately 11M shares issued to settle debts all but erased all debts of the company. Second, is that $1.4M of that debt was owed to related parties. In other words, it was owed to the officers and directors that exited the company. Based on the run experienced the last two days, they basically doubled their money if they were to sell.

Finally, Global Remote Technologies only had a few thousand dollars worth of assets. Essentially, it was a perfect shell for someone to start a new organization with, with the benefit of already being listed on the CSE. All that was required was for the debt to the former officers be cleared . This was done easily enough.

If nothing else, Global Remote Technologies is a perfect example of the naivety of today’s investors. Rather than look for solid, strong companies with potential, they chase after the quick buck. They’d rather focus on current buzzwords, than that of current financials. On “potential” future gains, than that of slow and steady growth. Rather than noting the current assets, they’d rather note a potential future letter of intent. This leads many in the industry to take a step back and say “seriously, what?”

Focus on what the news release is really saying. Don’t fall for the hype. Dive deep.

 


Information for this briefing was found via Sedar, The CSE and Canadian Insider. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell.

As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.