Before we begin, do you know about Sony guts?
If the rambling, raving, Israeli CTO, Dr. Danny Rittman, at Southern California reverse-merger company Gopher Protocol (GOPH), is to be believed, it seems that almost everything will one day have Gopher guts inside. Pet trackers, cell phones, even cryptocoins!
But one thing that is already stuffed to the gills with Gopher guts, is Long Island penny stock Mobiquity (MOBQ). Back in June of this year they issued a curious press release highlighting an even more curious transaction.
Glen Eagles Acquisitions LP Adds Mobiquity Technologies to its Portfolio of
Companies focusing on IoT, AI and Mobile Technologies
NEW YORK, June 25, 2018 (GLOBE NEWSWIRE) — Mobiquity Technologies, Inc.
(OTCQB:MOBQ), a leading mobile location data intelligence company, is pleased
to announce a strategic investment by Glen Eagles Acquisitions LP. GEA is a company focused on building and acquiring businesses within the
Internet of Things (IoT), Artificial Intelligence (AI) and Mobile Technologies
Quite a description of Glen Eagles. If it sounds familiar, that might be because the description of GOPH is almost exactly the same.
Now, what is this “strategic investment” that the Eagles are making into MOBQ?
Mobiquity will receive approximately $9 million in a combination of cash and Gopher Protocol stock (OTCBB:GOPH), a GEA portfolio company.
MOBQ is receiving an investment that consists of stock in Gopher, along with cash. We need to examine the 8-K to see the real details.
Item 3.02 Unregistered Sale of Equity Securities
On June 21, 2018, Mobiquity Technologies, Inc. (the “Company”) entered into a strategic investment transaction with Glen Eagles Acquisitions LP (“GEA”). As part of the strategic investment, the Company received 4,500,000 shares of Gopher Protocol Inc. common stock (traded in the OTC Market under the symbol “GOPH”) and cash in exchange for 150,000,000 shares of its restricted common stock. There was also an origination fee of 15,000,000 shares of its restricted common stock paid to GEA by the Company in connection with this transaction. There were no commissions or finder’s fees paid by the Company in connection with this transaction.
It seems this isn’t really much of an investment at all. It is a share swap. GEA gets rid of 4.5mm shares of GOPH and some cash, and in return gets not 150mm shares of MOBQ, but 165mm shares. What are these worth?
On the date of the transaction, 21 June 2018, GOPH shares closed at $1.48. The 4.5mm shares were worth $6.66mm and thus GEA should have paid $2.34mm in cash to MOBQ, to get to the stated deal value of $9mm.
In return, MOBQ issued 165mm shares, that traded at $0.083 to GEA. This is an insane amount of shares when you consider that at the end of March 2018, MOBQ only had 207mm shares outstanding, effectively giving near control to GEA. How much were these shares worth? 165mm x 0.083 = 13.69mm.
For an “investment” of $9mm, GEA immediately gets shares worth $13.69mm. An instant 52% profit on the books.
If one examines the MOBQ June quarter 10Q, the Balance Sheet does not show anywhere close to $2.34mm in cash, although the GOPH shares are there under “Investment in Corporate Stock”, and the share count has ballooned to 378mm.
Wonder where that cash went? Did MOBQ even receive it? We’ll save that question for another day. Right now, lets find out who is behind GEA? The press release offers a clue:
Glen Eagles Acquisitions Managing Member, Darren Dunckel, said, “We are
excited to add Mobiquity to our portfolio of companies. In addition to the
strong management team, we believe that the ability to create synergies
between our portfolio/prospective client companies creates additional value
for us as an investor.”
And just who is Darren Dunckel?
He used to be the CEO of a company called Forex International Trading Corp (FXIT).
FXIT just so happens to have changed it’s name to Gopher Protocol (GOPH) on February 25th 2015.
Before FXIT/GOPH Darren used to be an executive at a Russian mob connected stock promotion that went through multiple name changes including Eco Trade, Ya-Sheng Eco Trade, Vortex Resources, EmVelco, Euroweb, and Hungarian Tele-Construction, since it went public in 1993. Here’s the first sighting of Darren, in early 2007:
Euroweb International Corp. Announces the Creation of a Diversified International Real Estate Development Group
LOS ANGELES–(BUSINESS WIRE)–January 05, 2007
Today, Euroweb International Corp. (Nasdaq Capital Market – EWEB), announced an exchange of shares in its subsidiary, Emvelco RE Corp. (f/k/a Euroweb RE Corp.) for all of the shares of stock of Verge Living Corporation, the resulting company is 43.33% owned by Euroweb and 57.67% owned by Verge Living Corporation’s shareholders. The combined resources of these companies will result in an extraordinary synergy said Yossi Attia, Chief Executive Officer of ERC and Darren Dunckel President of Verge Living Corporation.
And who else pops up at Euroweb? Dr. Danny Rittman.
Euroweb Makes Announcement
BEVERLY HILLS, Calif.–(BUSINESS WIRE)–Sept. 5, 2006
Micrologic, Inc. a Nevada corporation and Electronic Design Automation (EDA) startup, a proposed joint venture to be partially owned by Euroweb International Corp. (NASDAQ: EWEB) today announced the beginning of its official operation. Euroweb and Dr. Danny Rittman are presently finalizing the definitive agreements pursuant to which Euroweb provides funding of up to $1m to Micrologic and Dr. Rittman licenses the use of certain technology owned by Dr. Rittman to Micrologic.
Gopher guts seem to stink. More to come…