Having reviewed tens of thousands of SEC filings over the years searching for the next hot penny stock, we may have found it with Green Innovations Ltd. (GNIN). The Company just created a subsidiary, Green Hygienics Inc., to sell bamboo-based paper products in the U.S. just prior to their reverse merger with Winecom Inc. (WNCM) and subsequent 20-for-1 forward stock split. Since the insiders and legal team have a history of producing some awesome penny stocks, it would be in your best interest to pay close attention to GNIN stock for its initial trading date when the $5 price drops and the new penny shares begin trading.
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GNIN Stock Structure
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While reviewing the share structure for GNIN, one material item caught our attention immediately on the S-1:
William L. MacDonald
Macdonald Tuskey Corporate & Securities Lawyers
Suite #1210, 777 Hornby Street, Vancouver, B.C., V6Z 1S4, Canada
For those that are unaware, MacDonald is linked to several successful penny stocks in the past such as Lithium Exploration Group (LEXG), Respect Your Universe (RYUN) and Pristine Solutions (PRTN) as well as a couple of not-so successful ones such as New America Energy Corp. (NECA) and Obscene Jeans Corp. (OBJE).
Despite the not-so successful connected penny stocks of Green Innovations legal team, their sole director, Bruce Harmon has some very successful connections, one of which we alerted on in March for 441% gains:
- Accelerated Building Concepts Corporation (ABCC)
- Alternative Construction Technologies, Inc. (ACCY)
- Organa Technologies Group, Inc. (OGTG)
- Winwheel Bullion, Inc. (WWBU)
- eLayaway, Inc. (ELAY)
- Omni Ventures, Inc. (OMVE)
- Immunovative, Inc. (IMUN)
Another factor which shows promise for GNIN is that, although Green Innovations created its wholly owned subsidiary, Green Hygienics, solely for the purpose of the reverse merger, somehow, according to the 10-Q filed on October 29, 2012, just one month after the merger, ”through its sales efforts, Green Hygienics was in the process of finalizing several orders for its products with major retailers and distributors in the United States.”
Here’s the meat and potatoes of the business plan GNIN will promo on:
On August 1, 2012, Green Hygienics entered into a Licensing Agreement with American Hygienics Corporation (“AHC”), the world’s largest manufacturer of bamboo-based wet wipes, is internationally certified and a member of the world Private Label Manufacturers Association, whereby the Company acquired the exclusive right to import and distribute AHC’s proprietary bamboo pulp-based hygiene products for a period of 5 years . The Licensing Agreement calls for the planned distribution of generic, private label, and Green Hygienics branded products such as:
- Biodegradable diapers of 100% bamboo pulp;
- Chlorine Free bamboo pulp based plates and cups;
- Produce platters and absorbents made from bamboo pulp;
- Nursing Pads made from bamboo pulp;
- Dryer sheet pads made from bamboo viscous fiber;
- Under arm absorbing pads made from bamboo pulp;
- Various stationary made from 100% tree free bamboo pulp;
- Female Sanitary Pads made from bamboo pulp; and
- Panty Liners made from bamboo pulp
Note that all of these products are 100% “Recession Proof” whereby because the economy sucks, you’re not gonna flow red longer, change less diapers, or wipe less.
Green Hygienics’ Agreement also calls for the non-exclusive North American distribution rights (for retail and institutional distribution only) for AHC products, such as toilet paper and facial tissues.
The Company can renew the exclusive distribution license for another 5 years as long as they can hit certain sales target such as:
• $150,000 in sales of absorbent pad based products, including diapers, panty liners and sanitary pads during the first year followed by a 25% increase during each subsequent year;
• $100,000 in sales of plates and cups, produce platters, dryer sheets, and stationary during the first year followed by a 25% increase during each subsequent year; and
• $150,000 in sales of miscellaneous branded products, followed by a 25% increase during each subsequent year. Branded products include products marketed under the Green Hygienics brand and related marks, including “Premium Formulation,” Clearly Herbal and Green & Soft
AHC already exports to nearly 50 countries, supplying a number of Multi-National brands and retailers around the globe including customers such as 3M, Carrefour, Tesco, Walmart, and Goodyear.
The real deal, as always is in for the pre-IPO investors and the convertible notes. Already calculated in the 100 million shares outstanding are convertible notes convertible into 7,723,603 common shares, most at a per share cost of $0.01. Most all the convertible notes are from Kachess Financial Corporation of which an additional note was issued on October 4, 2012 which bears interest at the rate of 12% per annum which accrues and can be converted at the lower of $0.01 per share or 70% of the average of the closing prices of GNIN stock for the preceding three trading days. Which do you think will be the conversion price?
Beyond the insider, attorney and favorable note payable conversions, its well worth noting that between Wednesday, November 7 and the time of this posting, Green Innovations spruced up their website and changed their logo. We think this can really have a solid run, especially since they are hitting two major arteries: Green and Staple Products. Saving the earth with recession proof products already distributed to some of North America’s largest retailers like Walmart is cause for alerts.
About GNIN Stock
Green Innovations Ltd., and their wholly owned subsidiary Green Hygienics, Inc., is in the importation, sale, and distribution of hygienic and household products made of bamboo-based paper.
Click here to view the SEC filings for GNIN.
Bottom Line: GNIN is a new penny stock that has yet to trade a single share. With the agreement they have with AHC to sell “recession-proof” green items into the largest economy in the world, it’s worth having GNIN stock somewhere on your watch list. Be on the lookout for the first day volume appears as an indicator as to a timeline for a possible promotion. LEXG and RYUN wasted no time at all from when they began trading to when they began running.
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