It takes a universally unique company to standout in this market.
Every time the market has gone the way of uncertainty, we have stepped outside the junior resource sector to bring you a company in a league of its own. For those members who have been with Pinnacle for a few years now, you know exactly the types of opportunities we have brought forward. They’re typically companies with unique and patent protected technology or products operating in biotech, alternative energy or in our new Featured Company’s case, agriculture.
You see, in this kind of market environment, every public company is competing for the same investment buck. So in order to capture the investing public’s attention, it requires a story that is grossly unique – a story with a different kind of upside potential and operating outside the usual junior market we have all grown accustom to.
Before we get started explaining the ins and outs of our new Featured Company, a key fact we want you to keep in mind when reading this report is that it currently has a market cap of just $7.1 million. On top of that, management and insiders own roughly 46% of the outstanding 21.6 million shares.
We were introduced to this company a few months ago. It was through a contact we had made from a previous investment two years ago. He had informed us of a recent IPO – a company with a new agriculture technology, which is patent protected, that could provide huge benefits to a booming market which we will explain in detail. Most importantly, the company had finished all necessary development steps and was on the verge of bringing its product to market – the exact point in time we like to get involved.
After listening to our contact explain this company in great detail, including the players that were involved in its startup, we came to the realization that its management had ties to some of the largest agricultural initiatives in the world. The VP of our new Featured Company was responsible for the coordination and implementation of a No-Tillage Agriculture program funded by the Howard Buffett Foundation. He was also a team leader for projects with World Vision, USAID and a local consultant to the World Bank. After learning about the entire background of this company’s management, we went to its headquarters a few days later to see its No-Till farming technology for ourselves.
As you may already know, we have been looking to step into the agriculture sector since July of last year (given the major wealth shift occurring in this industry). Many mining titans and fund managers, not to mention government organizations, are starting to dump billions into the sector and its supporting technologies. The agriculture sector has entered an era where true conservation of the world’s farmlands using sustainable agriculture methods is no longer an option, but a necessity. Global soil degradation has reached dangerous levels.
Industry analysts, governments as well as global food initiative organizations believe No-Till farming is at the heart of farmland preservation.
Our Featured Company’s No-Till planting system, comprised of patented technologies, took 5 years of development and roughly $6 million in R&D to create. This technology was developed by Dr. Noel Lempriere. Dr. Lempriere is an expert in the field of engineering and No-Till farming equipment. His expertise is so respected that he was invited to address the US senate special committee on sustainable agriculture. He is recognized as a pioneer in land restoration initiatives and conservation agriculture.
Without further adieu, our new Featured Company is Clean Seed Capital Group (CSX:TSXV). This company’s story, management, capital structure, price point and patented No-Till planting system, fit the investment opportunity criteria we work so hard to find in this market climate.
Clean Seed Capital has positioned itself within an ecological movement to balance productivity with sustainability in farming. At the core of this is Clean Seed‘s advanced precision No-Till planting system comprised of individually patented technologies. This No-Till planting system combats soil erosion, increases yields, reduces seed and fertilizer use and can penetrate ground that many can NOT…one of its foremost advantages will be in restoring fallow ground.
* Clean Seed Capital is a very connected company. Its VP is Dr. Kwesi Opoku-Debrah, PhD. This man is crucial to our selection of Clean Seed as our new Featured Company. As we’ve always stated, the strength of a junior company’s management is its most valuable asset. And for Clean Seed to get its No-Till planting technology in front of large agriculture organizations, as well as governments in its target market, it needs a connected man like Dr. Kwesi Opoku-Debrah. It’s very important to note that prior to joining Clean Seed Capital, his most recent assignment was Regional Technical Advisor at the Central Africa Region Office for Agriculture and Environment of the Catholic Relief Services. In this role, he was part of an agriculture proposal review team and was responsible for the coordination and implementation of a No-Tillage Agriculture program funded by the Howard Buffett Foundation. Howard Buffet, as you may know, is Warren Buffet’s son. And No-Tillage farming is the focus of Clean Seed Capital. It is very rare to find a $7.1 million company with a VP of Dr. Kwesi Opuku-Debrah’s pedigree.
Among Dr. Opuku-Debrah’s many achievements, career highlights include serving as the Agricultural Team Leader of Evaluations for World Vision and USAID, local consultant to the World Bank and the Rome-based International Fund for Agricultural Development. He worked in similar capacities with a number of other major NGO and governmental institutions that specialize in providing development aid to African nations. This man is the VP of our new Featured Company, and as you will learn shortly, he has already opened doors in Africa for Clean Seed and its patented No-Till planting system.
* Just 6 days ago, thanks to the many connections of its management, Clean Seed Capital announced that it has signed a Memorandum of Understanding to acquire a controlling interest in the 3rd largest Agro-Processing Company in Ghana, Africa. The MOU is in place in order to incorporate commercial No-Till farming, agro-processing (vegetable oil, seed cake, poultry feed and other ancillary products) and the deployment of Clean Seed’s proprietary No-Till farming equipment. Remember that it was Clean Seed‘s VP, Dr. Opoku-Debrah who was responsible for the coordination and implementation of a No-Tillage Agriculture program funded by the Howard Buffett Foundation.
* There has been roughly $6 million spent on R&D alone creating Clean Seed‘s No-Till planting system comprised of individually patented technologies; yet, the company currently has a market cap of $7.1 million. Best of all, the R&D phase of the company’s No-Till planting system is complete. To be precise,Clean Seed has manufactured its machinery and is going to market with its advanced precision No-Till planting system right now – a technology we spent weeks learning about and witnessing its practicality at the company’s headquarters (more on this later).
* Stock Timing: Clean Seed Capital currently trades at $0.33 per share. It operates outside the resource market and despite the major sell-off in the juniors over the last two months, Clean Seed‘s share price has held firmly. Aside from its patented technology going to market, this share price stability could be due to the company’s capital structure. It has a very tight capital structure. There are only 21.6 million shares outstanding with roughly 8.5 million in escrow. And as mentioned, management and insiders own roughly 46% of the outstanding shares. We are always looking to feature companies with a high degree of insider ownership and a low monthly burn-rate.
* Clean Seed Capital went public in September of 2011 at $0.30 per share and since that time, the company has developed at a rapid pace. The general market has yet to learn about its story, which is a key reason for our introduction at this time.
Now that we’ve touched on a few of Clean Seed‘s highlights, let’s explain exactly what No-Till farming is, the dire need for it and exactly what Clean Seed‘s advanced precision No-Till planting system could do for the industry. No-Till planting is a game changing movement.
What is No-Till Farming?
To understand No-Till farming/planting and why it’s desperately needed now more than ever, we must first explain tillage (or tillage farming). This is the way humans have been farming for the last several hundred years i.e. plowing a field. This age-old practice of turning the soil before planting a new crop is a leading cause of farmland degradation. Many farmers have already replaced plowing with No-Till farming. Tillage farming (plowing) has worked for farmers, but isn’t a sustainable way to farm and isn’t the most cost effective. As the industry has become more educated on the subject, a worldwide movement to No-Till farming has developed and is gaining momentum rapidly. The reason for this shift is simple; tillage farming dries the soil before seeding, causes the soil to lose a lot of its nutrients and ability to store water (erodes soil), increases the amount of fertilizer and chemical runoff (a very dangerous problem developing in our environment), reduces organic matter in the soil, destroys soil aggregates, compacts soil, can attract harmful insects to the field and hurts yields for farmers over the long-term. To sum it up, tillage farming is not sustainable and over time yields less food and a lower quality of food.
According to the GMO Quarterly Letter, written by Jeremy Grantham, the Co-Founder and Chief Investment Strategist of Grantham Mayo Van Otterloo, a Boston based investment firm with over $97 billion in assets under management, “global soil is eroding at a rate that is several times that of the natural replacement rate. It is probable, although not certain, that the U.S. is still losing ground. The world as a whole certainly is.”
Jeremy Grantham is a legend in the investing world and has predicted several booms and busts in the past. He went on to state in his 15 page report titled “Resource Limitations 2: Separating the Dangerous from the Merely Serious” that “The one piece of unequivocal good news [in respect to farming and soil] can be found in the growth of no-till farming. In no-till, the residue of the previous crop is left on the ground and new seeds are planted without plowing. This technique reduces erosion by about 80%, reduces fertilizer run-off, preserves moisture, improves the soil (and, quite possibly, the quality of the food), and reduces the emissions of heat trapping gasses.”
Before we go any further in this report, remember that it was Clean Seed‘s Vice President, Dr. Kwesi Opoku-Debrah, who was responsible for the coordination and implementation of a No-Tillage Agriculture program funded by the Howard Buffett Foundation. On top of that, Dr. Lempriere, the developer of Clean Seed‘s No-Till planting system, is an expert in the field of engineering and No-Till farming equipment. He was invited to address the US senate special committee on sustainable agriculture and is recognized as a pioneer in land restoration initiatives and conservation agriculture. It is this No-Till technology, developed by Dr. Lempriere, that Clean Seed is taking to market right now…
In his report, Jeremy Grantham goes on to state “The growth of no-till has been very rapid in South America, rapid in the U.S. (which is now at 35%), and moderate in many other developed countries. But it is used on only about 5% of farms globally.”
What isn’t mentioned in Mr. Grantham’s quotes is the increased regulation coming into the farming industry that has already mandated the use of conservation or No-Tillage practices.
Clean Seed Capital has a patented No-Till planting system that can deliver measurable financial and ecological benefits to the world of agriculture.
Farmers are finding that environmental concerns are leading to legal and legislative impacts on their business activities. This fact was highlighted as long ago as February 11, 1996, in a New York Times article. The article noted “Farmers have received billions of dollars in income annually because of subsidies. Increasingly, though, the Government has sought to control these outlays with a complicated web of restrictions.” Regulation now dictates to farmers what land they can grow crops upon, what acreage must be reduced and even what crops can be produced.
In many countries, Brazil for example, legislation has already been implemented that mandates the use of conservation or no-tillage practices. Similar legislation is expected in Canada and the United States. In fact, legislation is proposed or has passed and is awaiting implementation, in many Provinces and States in Canada and the United States, which will affect a wide range of farming activities. The regulatory approach to improving the environment is a growing trend. It will benefit those farmers who comply with new regulations and will significantly benefit companies that offer the technology that will assist farmers to comply.
The US is a world leader in farming technology, infrastructure and productivity. It has rapidly adopted the No-Till method faster than any nation and for obvious reasons. The rest of the world is taking notice and starting to adopt the No-Till method of farming. This is a movement being endorsed by governments, non-profit organizations and most importantly, the private sector. No-Till farming is on the cusp of a huge global movement, already showing massive growth potential and one our new Featured Company, Clean Seed Capital (CSX:TSXV), is aiming to capitalize on through its patented No-Till Planting System.
Not all No-Till technologies are created equal…
Like any relatively new technology, No-Till farming equipment is still being developed worldwide and the door is wide open for a market leader to improve further on what the basic technologies accomplish. Despite already being miles ahead of tillage farming (plowing) in respect to land preservation, No-Till farming technologies are going to become much more productive both economically and environmentally. Until now, there have been a few economic drawbacks with many No-Till farming methods. It was vitally important that Clean Seed had its technology patent protected because of what it can achieve.
Clean Seed‘s No-Till planting system, comprised of individually patented technologies, took 5 years of development and roughly $6 million in R&D to create. During this time, the company’s technology underwent extensive testing including approximately 5000 hours of bench and shop testing and over 500 hours of in-field testing – representing several thousands of acres under numerous soil, surface residue and weather conditions. These tests confirmed superior agronomic benefits including increases in crop yields, reduced soil erosion, reduced seed and fertilizer usage and increased soil moisture retention. Clean Seed‘s No-Till planting system can also penetrate ground that many can NOT…one of its foremost advantages will be in restoring fallow ground.
From the beginning the team at Clean Seed took into account the massive stresses and strains on the frames of agricultural seeding equipment. Gord Wilson, Clean Seed‘s Chief Technical Officer and Engineering Manager, explains key aspects of the companies commercial equipment.
Graeme Lempriere’s (CEO of Clean Seed Capital) family have been advocates of sustainable agriculture for over 25 years. The company’s technology was developed by his father, Dr. Noel Lempriere. Dr. Lempriere is an expert in the field of engineering and No-Till farming equipment. And as mentioned, he was invited to address the US senate special committee on sustainable agriculture. He is recognized as a pioneer in land restoration initiatives and conservation agriculture.
Clean Seed provided us pages of scientific data on the benefits of its technology and why it has several advantages over the competition. We have summarized our findings from our extensive research and equipment presentations at the company’s headquarters.
What Makes Clean Seed’s Technology Different?
Clean Seed has 3 distinct patents which provide competitive advantages for several reasons. The important in ground components of Clean Seed‘s equipment are incredibly designed and manufactured out of the highest quality cast iron and steel. The patented opener blades can dispense 3 different products at any given time and the design assures optimal product placement, securing strong yields while simultaneously protecting the soil surface. Clean Seed‘s technology is the only known integrated triple-shot seeding technology that places seed and fertilizer in the optimum relative positions whilst leaving over 90% of the soil surface undisturbed. To someone unfamiliar with this industry that may not mean much, but the scientific advantages behind that technology are significant. You have to keep in mind that soil contains thousands of living organisms which promote healthy crop growth. If disturbed, crop growth is hindered and yields for the farmers are shrunken (a major problem with plowing).
Clean Seed‘s modular No-Till system of proprietary technologies is comprised of blade/opener design, opener assemblies, advanced electronic metering system, expandable frame design, advanced electronic control of seed/fertilizer feed, and a unique patented parallelogram system. Design of the opener – the keystone technology, provides for greatly reduced soil disturbance (resulting in elimination of soil erosion and enhanced carbon sequestration), provides for high moisture retention and superior seed and fertilizer placement (resulting in improved yields) and demonstrated increased durability and ease of use.
If the in-ground components represent the heart of the Clean Seed Precision No-Till planting system, then the metering device is clearly the brain. Seeds and fertilizer are accurately fed to the openers throughClean Seed‘s proprietary electronic metering system. The metering system embodies the concepts of gentle product handling through its unique delivery method, avoiding any unnecessary stress on the seeds.
Clean Seed has brought farming and more specifically, No-Till planting into the 21st century.
We wanted to highlight just a few of the key advantages Clean Seed has created for the No-Till Farming industry through its patented equipment. To explain every advantage this technology has on the current market, would be a 16 page report of its own – which Clean Seed has created and we went through thoroughly before management walked us through the technology at company headquarters. The company provides extensive research and material regarding the technology on its website (which you can view at your leisure).
It is worth mentioning that Clean Seed‘s Smallholder / Developing Nations equipment is capable of being towed and operated by tractor or by animal power such as oxen, with an easy to use “Nature Drive” conversion kit.
So What is Clean Seed Doing Right Now With Its Technology?
Last month, Clean Seed‘s CEO, Graeme Lempriere and its V.P, Dr. Kwesi Opuku-Debrah travelled to Ghana to evaluate synergistic agricultural business opportunities in commercial No-Till agriculture and food processing.
The government of Ghana is currently implanting a nationwide Food and Agriculture Sector Development Policy ( FASDEPII-2010-15 ) focusing on six priority themes: Food security growth in increased competitiveness and enhanced integration into domestic and international markets, sustainable management of land and environment, science and technology applied in food and agriculture development and improved institutional co-ordination.
During Clean Seed management’s business trip to Ghana, The World Bank approved a US$100m credit to support the government’s efforts at scaling up the development of commercial agriculture. The commercial agriculture project seeks to facilitate access to land, strengthen Ghana’s investment promotion infrastructure for attracting agri-business investors and promote linkages on the Accra Plains. It’s worth mentioning again that Clean Seed‘s VP, Dr. Kwesi Opuku-Debrah, served as a local consultant to the World Bank.
Just 6 days ago, Clean Seed Capital Group announced that its recent trip to Ghana has resulted in the signing of a Memorandum of Understanding (“MOU”) with 3K&A Industries Limited (“3K&A”), the 3rd largest Agro-Processing Company in the country.
Both Clean Seed and 3K&A wish to collaborate together to achieve their mutual objectives in establishing an integrated sustainable agriculture program in Ghana, incorporating commercial No-Till farming, agro-processing (vegetable oil, seed cake, poultry feed and other ancillary products) and the deployment of the Company’s proprietary No-Till farming equipment.
Under the terms of the MOU, the Company intends to acquire a 60% controlling interest in 3K&A through a combination of equity and debt financing, in the amount of US$1,500,000. 3K&A would then be branded asClean Seed Africa Ghana Ltd (“CSAG”). The funds, in part, will be used to upgrade and expand the existing infrastructure of 3K&A and begin the implementation of commercial No-Till agriculture and land restoration initiatives in Ghana.
Full details of the press release can be viewed by clicking here.
3K&A Industries Ltd. is an agro-processing company that commenced operations in April 2006 and is the 3rd largest producer in the country (Ghana). It currently operates a soy vegetable oil mill with a total designed capacity of 48 metric tonnes of raw material per day. In addition, the company operates an 18tpd (tonnes per day) Soy vegetable oil refinery.
Key Fact: 3K&A Industries Ltd. was invited to The World Business and Development Awards (WBDA) in New York City in 2008. These awards are held to recognize the crucial role of the private sector, large and small, in implementing the Millennium Development Goals (MDGs). 3K&A Industries demonstrated that profitability and sustainability can go hand in hand.
In 2008, at the awards, 3K&A Industries was commended for improving local soybean production and processing capacity while boosting the local economy. The 2008 WBDA chose 10 winners after receiving an unprecedented 104 applications from 44 countries.
For Clean Seed to get involved with a company as established as 3K&A in Ghana, it came down to the advantages its patented technology can provide in No-Till farming and the connections of its management, which we’ve explained in great detail.
(left) Dr. Kwesi Opuku- Debrah (middle) Yaw Poku (right) Graeme Lempriere – at 3K&A facility
Also, during the trip to Ghana, Mr. Lempriere and Dr. Kwesi Opuku-Debrah (CEO and VP of Clean Seed) were invited to present the company’s sustainable agriculture initiatives to The Kwame Nkrumah University of Science and Technology (KNUST) – the most prestigious University in Ghana.
Clean Seed CEO Graeme Lempriere and VP Dr. Kwesi Opuku-Debrah with KNUST Agriculture Faculty
Graeme presenting Clean Seed No-Till technology to faculty at KNUST
Clean Seed Capital‘s VP for International Development, Dr Kwesi Opoku-Debrah, made this statement in respect to the company’s trip to Ghana: “This is a unique opportunity for Ghanaian farmers to change from a subsistence farming attitude to a commercial, business approach to farming. It is my belief that the country’s youth and graduates will take advantage of this opportunity in sustainable commercial agriculture. What is unique about this program is the participation of agro-processors and other participants in the value chain, to ensure a win-win situation for all that results in an increased and stable incomes, while using No- Tillage and other sustainable farming practices.”
On the home front, three weeks ago Clean Seed announced the delivery of the Company‘s final production model of its Smallholder / Developing Nations No-Till seeding equipment to the UBC (University of British Columbia) Farm.
Clean Seed’s Smallholder/ Developing Nations No-Till Planting Machine
The main objective of the analysis is to independently verify the Company‘s patented Mark III opener blade assembly meets or exceeds the conservation tillage standards as outlined in the USDA Natural Resources Conservation Service (NCRS) and is in conformance with the standards outlined in the 2006/2009 NRCS Handbook of Conservation Practices and CCX Offset Project Protocol. Weather dependent, the Companyanticipates preliminary results from this analysis near the end of April, 2012.
Clean Seed’s Smallholder/Developing Nation Planting System on the ground at UBC farm
Clean Seed Capital | The CEO
Graeme Lempriere is a corporate and financial entrepreneur who we’ve gotten to know very well over the course of our due-diligence process. He‘s the type of CEO who gets to the office at 5 am and works late into the night. We know this from first-hand experience. On many occasions during our research process we would receive emails from him answering any questions we had at all hours of the day and night.
Graeme has many years of senior management experience in both the public and private sector. Graemeis the founder and CEO of Marvelle Capital Group, a private business development and venture management company that invests capital and management expertise into innovative early and mid-stage companies. Prior to founding Marvelle, Graeme was responsible for company restructuring, marketing, primary financings and market development for mid-tier companies. He has held senior executive positions and served on the board of several public companies dealing in the international market, including mining, engineering groups, leisure industry and real estate development. This is the man who put the wheels in motion for Clean Seed to get to where it is today. Graeme‘s family have been advocates of sustainable agriculture for over 25 years. The company’s principal technology was developed by his father, Dr. Noel Lempriere, an expert in the field of engineering and No-Till farming equipment.
It’s not every day you come across a $7.1 million market cap company that went public only 8 months ago with the pedigree of Clean Seed‘s management and technology developer. A member of this group was responsible for the coordination and implementation of a No-Tillage Agriculture program funded by theHoward Buffett Foundation, worked for World Vision, USAID and consulted for the World Bank. The man who developed this company’s patented technologies was invited to address the US senate special committee on sustainable agriculture. The company‘s CEO has the robust hands-on operational experience in the formation, financing and running of publicly listed companies. The management and insiders combined own roughly 46% of the 21.6 million outstanding shares. That says a lot in the public market space.
The above mentioned points were a huge reason for our selection of Clean Seed as a client and now Featured Company. Introducing it to our members at this time makes sense to us from a risk/reward standpoint. We are bias when it comes to Clean Seed and will be adding to our equity position in the company following the release of this report.
We see the company‘s technology as innovative precision equipment, raising the bar in sustainable agriculture. The company went through 7 versions of design before perfecting its technology. Combine all the other parts of the puzzle, especially the metering system, and you have the Cadillac of farming equipment. Due to the robust design and patented features, Clean Seed‘s No-Till planting system can penetrate ground that many can NOT…one of its foremost advantages will be in restoring fallow ground. This technology, along with the connections of its management, have already opened doors in one African nation through an MOU with the 3rd largest Agro-Processing Company in Ghana. Making inroads to Africa could be very significant for this new public company considering it’s the most underdeveloped agriculture region on the globe. Africa has ¼ of the world’s entire arable land.
Clean Seed has positioned itself to capitalize on the emerging agriculture sector as No-Till farming continues its worldwide expansion at the behest of billion dollar initiatives.
We are proud to introduce you to Clean Seed Capital (CSX:TSXV) at this time in its growth curve. We will be relaying Clean Seed‘s development to you over the coming weeks. This spring will be a crucial time for this innovative agriculture company.
All the best with your investments,
“Our problem with erosion was very serious and it was very damaging to the environment to the extent that, in these crops, to produce one ton of grain in Brazil, we lost 10 tons of soil per hectare per year. We solved this problem by eliminating tillage,” says Almir Rebelo, grower advisor and president of Friends of the Earth, a Brazilian grower organization influential in the adoption of No-Till farming in Brazil.
Clean Seed Capital has visually documented its recent trip through Ghana and we encourage you to take a moment to watch this video. We feel it does a great job of capturing the opportunity available to the company and its shareholders in Ghana – and potentially in other parts of Africa. Click on image below to begin watching.
OUR VISITS TO CLEAN SEED’S HEADQUARTERS
(images not included above)
Clean Seed Headquarters – 7541 Conway Avenue, Burnaby, BC, Canada
No-till planting system equipment being prepared for commercial use – front view
Side view of Clean Seed’s No-Till planting equiptment for commercial use
Close-up view – bottom of Clean Seed’s no-till planting system where all cast assembly system is attached
Mark Tommasi of Clean Seed explains exactly how patented seed planting technology works using model example
Wrapping up our second visit to Clean Seed’s headquarters with a Q&A with CEO Graeme Lempriere
Disclosure, Risks Involved, and Information on Forward Looking Statements: Please read carefully before proceeding.
Important: Our disclosure for this report on Clean Seed Capital applies to the date this report was released to our subscribers (April 18, 2012) and posted on our website. This disclaimer may never be updated, even after we have sold shares of Clean Seed Capital.
Forward Looking Statements:
All statements in this report, other than statements of historical fact should be considered forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often, but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. Much of this report is comprised of statements of projection. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Risks and uncertainties respecting junior technology companies are generally disclosed in the annual financial or other filing documents of those and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to any particular company, a number of risks relate to any statement of projection or forward statement.
Risks and uncertainties respecting junior technology companies such as Clean Seed Capital are generally disclosed in the annual financial or other filing documents of those and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. Investors are cautioned not to consider investing in any company without looking at said company’s regulatory filings and financial statements. Every reader of this report should review Clean Seed Capital’s regulatory filings and financial statements filed on SEDAR.
PinnacleDigest.com is an online financial newsletter owned by Maximus Strategic Consulting Inc. We are focused on researching and marketing for resource and technology public companies. Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned anywhere in this report (particularly in respect to Clean Seed Capital). This report is intended for informational and entertainment purposes only. The author of this report and its publishers bear no liability for losses and/or damages arising from the use of this report.
Cautionary Note Concerning the Memorandum of Understanding (“MOU”) with Clean Seed Capital and 3K&A Industries Limited:
The proposed transaction with 3K&A and Clean Seed Capital is subject to finalizing a formal agreement, Exchange approval, and the Company raising the necessary financing. Full details of the MOU press release can be found at this url:http://www.cleanseedcapital.com/news%20releases/News%20Release_April_12_…
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Most companies featured in our newsletter, and on our website, are paying clients of ours (including Clean Seed Capital – details in this disclaimer). In many cases we own shares in the companies we feature. For those reasons, please be aware that we are extremely bias in regards to the companies we write about and feature in our newsletter and on our website.
Because our Featured Companies pay fees to us for our online advertising and marketing services and we (Maximus Strategic Consulting Inc. and/or its employees, consultants and affiliates) may own shares in the companies we feature and advertise for, you must recognize the inherent conflict of interest involved that may influence our perspective on these companies (including Clean Seed Capital). This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor and a registered broker-dealer before investing in any securities mentioned in our reports.
Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, its officers, directors, employees, and consultants shall not be liable for any damages, losses, or costs of any kind or type arising out of or in any way connected with the use of its products or services, including this report. Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, its employees, consultants and affiliates are not responsible for any claims made by any of the mentioned companies or third party writers. You should independently investigate and fully understand all risks before investing.
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Set forth below is our disclosure of compensation received from Clean Seed Capital Group Ltd. and details of our stock ownership in the company as of April 18, 2012:
Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, has been paid CAD$45,000 plus hst to provide online advertisement coverage for Clean Seed Capital Group Ltd. for a pre-paid six month online marketing agreement. The company (Clean Seed Capital Group Ltd.) has paid for this service. The service includes, but is not limited to, the creation and distribution of reports authored by PinnacleDigest.com about Clean Seed Capital Group Ltd. (reports such as this one), as well as display advertisements about the company on our website. AT THE TIME THIS REPORT WAS DISTRIBUTED (April 18, 2012), we (Maximus Strategic Consulting Inc.) owned 152,000 shares of Clean Seed Capital Group Ltd. which were purchased on the open market at an average price of roughly $.302 per share. Following the release of this report, we (Maximus Strategic Consulting Inc. and our employees and consultants) intend to buy more shares of Clean Seed Capital Group Ltd. on the open market. Every share we (Maximus Strategic Consulting Inc. and our employees and consultants) own of Clean Seed Capital Group Ltd., or purchase in the future, we intend to sell for our own profit and without further notice to our subscribers. This disclaimer will not be updated, even after we have sold our entire position of Clean Seed Capital Group Ltd. Please recognize that we are extremely biased when it comes to Clean Seed Capital Group Ltd.
Maximus Strategic Consulting Inc. and PinnacleDigest.com (including its employees and consultants) are not chartered business valuators; the methods used by business valuators often cannot justify any trading price for most junior stock exchange listed companies. Clean Seed Capital is considered to be a junior stock exchange listed company.
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