Some Advice Needed Please

Savvy_Player

They have gone from a Trading Halt to Suspended over 2 days, what does this mean exactly?

Kaiser74

Looks like things have moved on..

Thargor

Kaiser74 wrote: »

Looks like things have moved on..

Why whats happening?

winnie3236

There is still no volume of shares on the index, no web page still under construction and the directors are tied into to the deal for only four years while investors are in for fifteen years.A quick deal for them me thinks.

winnie3236

There web page is still under construction .The way it works they look for stressed property and approach( well meant to months ago )The Banks re negotiate a price for your property less is best,then float the actual value of your property on the exchange.Then you are now a lessee of your property you can never sell it it is now bound in a contract for 15 years.So they actually own it. Here's the catch you are swallowed in by the mortgage free for fifteen years!!! but you pay from your shares (that have not had any volume yet so no trade) €20.000 first year €15.000 second year and €10.000 for the next 13 years.So although your Mortgage free you have to pay them rent of your property which is higher per year than you would be paying your mortgage.This so called money you pay is meant to come out of your shares.So after 15 years they have got from you €165,000 prob more than your mortgage.So if your still alive in 15 years you can buy back your property but at the full market at that time so they gain another couple of thousands.Now this is subject to capital gains tax and other taxes you will have to pay.So what happens if you don,t make €20.000 in the first year you will have to pay interest on late fees.And if there is not enough investment companies to keep adding to the pile well it collapses.So new investors have to keep coming in to pay old investors. So no Web page still and if you google any companies that are the 20 first investors it is very interesting t see who has the most shares.

Sebastian Dangerfield

So what do "investors" have to gain? You give them control over your home for 15 years, you pay extortionate rent, and you can't sell. What do you get in return? Others do the same, and the profits from that, less healthy salaries for management / directors, flow down to you?

Im struggling to follow this one. It went from putting in 1k in return for 4k, in return getting access to a 100k loan at 5%, to mention of peoples houses. Did I miss something in between?

Savvy_Player

winnie3236 wrote: »

There web page is still under construction .The way it works they look for stressed property and approach( well meant to months ago )The Banks re negotiate a price for your property less is best,then float the actual value of your property on the exchange.Then you are now a lessee of your property you can never sell it it is now bound in a contract for 15 years.So they actually own it. Here's the catch you are swallowed in by the mortgage free for fifteen years!!! but you pay from your shares (that have not had any volume yet so no trade) €20.000 first year €15.000 second year and €10.000 for the next 13 years.So although your Mortgage free you have to pay them rent of your property which is higher per year than you would be paying your mortgage.This so called money you pay is meant to come out of your shares.So after 15 years they have got from you €165,000 prob more than your mortgage.So if your still alive in 15 years you can buy back your property but at the full market at that time so they gain another couple of thousands.Now this is subject to capital gains tax and other taxes you will have to pay.So what happens if you don,t make €20.000 in the first year you will have to pay interest on late fees.And if there is not enough investment companies to keep adding to the pile well it collapses.So new investors have to keep coming in to pay old investors. So no Web page still and if you google any companies that are the 20 first investors it is very interesting t see who has the most shares.

It looks more like a economic bubble to me.

MuppetZ

Hi,

New website here, https:// moralltachglobal (dot) com/
but it doesn't look like any new information, in fact a lot less than the previous one.

750,000 shares up for sale for quite a while, but who is going to buy them based on the website info? If you knew nothing of the company and looked at that website and all the information on this board, would you risk it?

Still, some people I know did, and won't be told it's a scam. They've been told to hang onto their shares as they are under-valued.

And what happened to the post from someone saying that he was promised a legal team? was it deleted by mods or by the user? Very strange goings on.

I'm not very clued up on all the share dealing thing, but doesn't the company only make money from the IPO? and any share trading afterwards only benefit the shareholders?

So the company floats, makes money, tells the punters not to sell their shares whilst the directors share out the IPO, and run with it? Oh, and they also have your house you can't buy back because you can't sell your shares because no one wants them.

Sounds legit to me.

Savvy_Player

Looks like they might be moving in to the Pink Open Market, for anyone who doesn't know what that is:
"The Pink Open Market offers trading in a wide spectrum of securities through any broker. With no minimum financial standards, this market includes foreign companies that limit their disclosure, penny stocks and shells, as well as distressed, delinquent, and dark companies not willing or able to provide adequate information to investors. As Pink requires the least in terms of company disclosure, investors are strongly advised to proceed with caution and thoroughly research companies before making any investment decisions."

Gaillimh1976

Savvy_Player wrote: »

Looks like they might be moving in to the Pink Open Market, for anyone who doesn't know what that is:
"The Pink Open Market offers trading in a wide spectrum of securities through any broker. With no minimum financial standards, this market includes foreign companies that limit their disclosure, penny stocks and shells, as well as distressed, delinquent, and dark companies not willing or able to provide adequate information to investors. As Pink requires the least in terms of company disclosure, investors are strongly advised to proceed with caution and thoroughly research companies before making any investment decisions."

Is that also an Australian market?

I don't get what the Australian connection is - or is it just the easiest/cheapest place to get listed without having to do much paperwork ?

nuac

Anyone thinking of investing in that outfit should go for a healthy walk

michaelp97

Hi looking to start investing with a fund of 10k and just seeking advice as to what would be the best stock brokerage I could use and is 10k too small to invest in a hedge fund? Or venture capital worthwhile?

Kaiser74

I see moralltach is listed on the aus stock exchange when many said it would never happen.. Anyhow if your lease with them is to be paid with shares that are given in return for the property then no cash needed. And if shares rise then happy days.. I wonder could your property be purchased sooner than the 15 years if shares were to double..

michaelp97

Just looking for a bit of advice, I'm a college student with an interest in investments and business, just wondering what's a good way to research companies to invest in like learning which company to select and what to research within the company or how to find companies to research that ate not the hugely known companies. Thanks

Gaillimh1976

Kaiser74 wrote: »

I see moralltach is listed on the aus stock exchange when many said it would never happen.. Anyhow if your lease with them is to be paid with shares that are given in return for the property then no cash needed. And if shares rise then happy days.. I wonder could your property be purchased sooner than the 15 years if shares were to double..

They have been quoted for just over 4 months and there has not been one single trade.

More likely to halve than double.

Kaiser74

I would imagine that they need to start trading soon to keep momentum in attracting new business.. I would expect trading soon

Prezatch

Why is this still even being discussed? It's beyond me. How many times do people need to read the word 'scam' before they believe it? I should just upload a pdf which asks people to send free money to my little bank account in Moate like this 'company' does if people are this gullible.

Kaiser74

Scam???

shironinja

Anybody able to find info on Directors?CFO is an accountant with a small practice in Westmeath.Can't seem to find anything on others.

Accountant Nick Linnane is the subject of a regulatory decision made by the charter accountants of Ireland withdrawal of firms investment of clients money.And a question of 1.2 million of clients money according to NSE of Australia. Address ivy House Moath

shironinja

Hey Bubba

Where did you come across this info?

Cute Hoor

From The Sunday Times

Intriguing world of Moralltach
A low-key Irish investment company registered in Malta and listed in Australia may not be able to fly under the radar for much longer

Niall Brady
May 6 2018, 12:01am,
The Sunday Times

Harry’s of Kinnegad in Co Westmeath has long been a stopping-off point for travellers between Dublin and the west of Ireland. What few visitors to the bar, restaurant and 45-bedroom hotel would realise, however, is that, for the past 18 months, the property has been part of a portfolio of assets assembled by Moralltach Global plc, a little-known investment group.

Based in Bunclody, Co Wexford, registered in Malta and listed in Australia, Moralltach has generated some big numbers since it was founded in 2012. It was valued at €1.4bn when it floated on the NSX stock exchange in Sydney last year, on a par with well-known Irish companies such as ferry operator Irish Continental and hotel group Dalata.

Moralltach’s investment portfolio of 38 projects dotted around Ireland have been independently valued at €650m, according to the company. They include Harry’s of Kinnegad, described in a share prospectus issued by Moralltach in late 2016 as “an iconic hotel located on the edge of the capital city”, and valued at €3m.

Most of Moralltach’s holdings are less well-known ventures, however, involved in everything from residential property development and the leisure sector to agriculture and green energy. They range from a Kerry equestrian centre that Moralltach has valued at €17.3m to a potato farm in Co Wexford valued at €15.3m and a B&B in Co Kildare valued at €5.5m.

The company is the brainchild of its chief executive, Wexford-based John Kieran (JK) Brennan. Described in the Moralltach prospectus as a “well respected and highly regarded property developer and entrepreneur”, he was among the lucky few when the Irish economy crashed in 2008, emerging unscathed despite a large personal exposure to property.

Many others were not so lucky. Brennan helped them hold on to their properties, businesses and homes, according to Moralltach, by negotiating debt settlements on their behalf with the banks.

“He saw an opportunity in freeing businesses from historic debt and capitalising future expansion plans,” Moralltach chairman Bob Bryniak wrote in the prospectus.

The Moralltach business model involved acquiring distressed properties that the company says were swapped by their former owners in exchange for Moralltach shares. According to its website: “Moralltach completed the acquisition of all projects in the portfolio on 7 November, 2016, through the issue of shares to the original owners of the projects.”

The company claims the arrangement got the banks off the owners’ backs while allowing them to remain in business by leasing their assets back from Moralltach. The leases are typically for 15-year terms and the original owners have an option to buy back the property at the end of the lease term “at market value”.

An added attraction is the chance to profit from any appreciation in the value of the Moralltach shares, which the company valued at €2 apiece in its flotation in February 2017. The business raised just €500,000 in the flotation but was valued at €1.4bn.

“Moralltach is a good news story,” Bryniak told The Sunday Times. “Moralltach brings significant added value to the Irish economy in general and specifically to Irish landowners who were adversely affected by the last financial meltdown and the collapse of the Celtic tiger.

“One of the main reasons I joined the company as chairman is because the rest of the board and management is totally committed to making a difference in helping those affected by these terrible circumstances help themselves.”

Attempts by The Sunday Times to contact business owners whose properties are listed among Moralltach’s investment projects were unsuccessful, however. Some of the properties appear to be the subject of ongoing receiverships or repossession applications, according to filings from the Courts Service of Ireland and the Companies Registration Office.

Bryniak declined to discuss individual transactions. “Our policy is not to disclose or comment on customer-specific related information,” he said. “We are also bound by confidentiality clauses with our business partners.”

Some of Brennan’s previous ventures have been unsuccessful, however. He had a solicitor’s practice in Bunclody but was struck off by the Law Society of Ireland in 1995. Moralltach’s finance director Nick Linnane has also come under regulatory scrutiny. In 2017, Chartered Accountants Ireland barred his accountancy practice, Nick Linnane & Co in Moate, Co Westmeath, from holding clients’ money or offering investment advice for five years.

While Moralltach claims a portfolio worth €650m, its accounts show land and investment properties at cost of €218m and a fair value of €280m. In explaining the discrepancy, Bryniak suggested that the figure of €650m relates to what the portfolio might be worth in the future rather than its current value.

“The €650m represents the value of all projects and reflects the value taking into consideration future income,” according to Bryniak. “The €280m represents the value of the assets we have on our balance sheet based on international accounting rules and where we have a claim on ownership.”

The shares-for-property deals on which the portfolio has been built are based on independent valuation, according to Moralltach. It provided the NSX with a list of 25 estate agents that it said undertook the work.

They include well-known names such as Sherry FitzGerald, which was unable to confirm whether it had done any work for Moralltach. Savills, another estate agent on the Moralltach list, told The Sunday Times: “Savills Ireland hasn’t undertaken any work for a company by the name of Moralltach Global.”

Bryniak did not respond to requests for an explanation. Moralltach’s progress has also been slower than expected since last year’s flotation. When it was finalised in November 2016, the company’s prospectus forecast revenues of €6.3m and profits of €1.5m for 2017 before interest, tax and depreciation.

Accounts recently filed with the NSX, however, show revenues of €1.7m for 2017 and profits of just over €400,000 after tax. The directors reported that the company remained in an “establishment phase”. Apart from Bryniak, who was paid a salary of almost €60,000, none of the other directors received payment in 2017, according to the accounts.

The company’s Australian auditors drew attention to “material uncertainties that may cast significant doubt on the group’s ability to continue as a going concern”, although they did not qualify their opinion.

The auditors’ concerns included the rapid depletion of Moralltach’s cash pile, which fell from almost €600,000 to just under €23,000 during 2017. None of the reported revenues of €1.7m for 2017 — comprising payments due from the businesses that have leaseback arrangements with Moralltach — had been collected by the time that the accounts were signed off on March 15 this year.

Of the €500,000 raised by floating on the NSX — all of which came from “unconnected third-party investors”, according to Bryniak — almost €364,000 was eaten up by the costs associated with the listing. Another €280,000 was spent on acquiring a head office building in Bunclody.

The company has loans from its directors to help pay its way, with the bulk coming from Brennan. He advanced more than €900,000 during 2017, bringing the amount owed to him by Moralltach to €1.9m. He has provided the company with an interest-free credit facility of up to €5m for 10 years.

The company is now aiming at moving beyond the crash to invest in greenfield ventures. Most of the €650m value in its portfolio, for example, is made up of green energy projects that aim to convert farm waste into energy that will be sold to the national grid.

More than €50m is comprised of what Moralltach terms “blue sky projects”: higher-risk investments with the potential to generate returns of 15%-25% a year. According to recent filings with the NSX, it plans to construct five waste-to-energy facilities this year.

Locations will be sourced from farmers in exchange for Moralltach shares. The farmers will lease and operate the facilities after Moralltach has paid for their construction.

The company said it is working on plans to tap investors in America for up to $40m (€33.4m) in convertible debt to fund the waste-to-energy projects. The Moralltach prospectus states that 15-year energy supply agreements for these projects have been agreed with the ESB.

Bryniak told The Sunday Times this referred to “preliminary supply agreements”. He added that final contracts would be agreed only when “commercial operation dates are known and all purchase agreements are in place”.

Replying to recent queries from the NSX, Moralltach referred to only one project with a signed agreement from the ESB — Sandford Energy in Co Kerry. It is valued at €33.8m in the company prospectus, which reported that Moralltach is set to receive €750,000 a year in lease payments and profit shares when this facility is in full operation.

ESB told The Sunday Times it “was not in a position to confirm or verify contractual information as requested, on the grounds of commercial sensitivity”.

In the long term, Moralltach has ambitious plans for expansion. According to its website, it aims to raise €300m by listing its shares on stock markets in Frankfurt, Toronto and New York.

The directors can look forward to rich rewards for their efforts. Brennan is entitled to an annual salary of €500,000, according to the prospectus prepared for NSX flotation.

The other executive directors, including Brennan’s 28-year-old son Tomás — who is “a talented football player”, according to the Moralltach prospectus — are in line for €400,000 each. Bryniak, a Canadian who has run utilities businesses in Canada and Oman, would be paid €250,000 a year.

The €1.4bn valuation achieved by the Moralltach listing placed a paper value of more than €700m on Brennan’s personal stake of 51% in the company. It should also have provided a liquid market for a group of about 300 shareholders who invested in the company before the flotation at less than 1c a share.

The only trading since then, however, was a small parcel of shares that changed hands last March at A$2.60 (€1.63). One shareholder is currently looking for a buyer for their shares at A$2.30, according to the NSX website, but has yet to get an offer.

On its corporate website, Moralltach pledges “great value to the investor in the short term and a safe haven for wealth in the longer term”. Its days of flying under the radar seem numbered, however.

The J Stands for Jay

Was that a press release, but with the newspaper having a sudden outbreak of morality causing them to change tone halfway through and tell the truth of the poor prospects for investors?

el diablo

So what happened with the OP and his neighbours? Did he dissuade them from falling for this scam or...?

el diablo

el diablo wrote: »

So what happened with the OP and his neighbours? Did he dissuade them from falling for this scam or...?

Being honest, I can't say for sure if they didn't invest or not. I did have a talk with them and showed them the suggestions that were made here regarding the website, email address and the logic of the return of investment and how ridiculous it sounded.

I've not heard anything about it anyway.....

Trading has been suspended indefinitely in the shares of investment company Moralltach as stock exchange investigations get under way in Australia into issues raised by The Sunday Times about the directors and the ownership of a property portfolio that Moralltach values at €650m.

The suspension is a blow for the company’s 400 shareholders, some of whom accepted shares in payment for properties that were transferred to Moralltach under sale-and-leaseback arrangements.

The National Stock Exchange of Australia (NSX), where Moralltach raised €500,000 in a share sale in 2017, said last week that it was making inquiries regarding “ownership of assets in its portfolio, as well as the conduct of two of the directors, some of which appears to be historical in nature”. Trading in the shares has been suspended “until further notice”.

Interim results issued last week show that Moralltach lost almost €2.3m in the first half of 2018 after writing off income of €1.7m arising from the sale-and-leaseback transactions. The company relies increasingly on its directors for support, including a €2m loan from founder and chief executive John Kieran Brennan.

The NSX has queried why Moralltach did not disclose that Brennan was struck off as a solicitor in 1995. It also wants to know why the company failed to disclose that an accountancy firm owned by finance director Nick Linnane was barred in 2017 from holding clients’ money or offering investment advice for five years.


Moralltach has confirmed to the Sydney-based NSX that the ban relates to €1.2m raised from clients of Nick Linnane & Co in Moate, Co Westmeath, for investment in Moralltach prior to its flotation in Australia.

The company defended its failure to disclose the ban by Chartered Accountants Ireland to the NSX.

“Nick Linnane was of the view that the regulatory decision had no bearing on Moralltach’s activities since the event occurred prior to the company being listed on the NSX, and Nick Linnane & Co’s business licence was in good standing,” it said.

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Veritas26

Looks like this bunch of charlatans are attempting another stock market listing this time in Germany! What could possibly go wrong!

CEO Brennan struck off by the Irish law society (per NSX)
CFO Linnane banned by the Chartered Accountants Institute in Ireland from holding client monies (per NSX)
Legal advisor Lohan named as a tax defaulter with the Irish revenue (per the Phoenix)

Keltictiger

Company is registered in Malta.
Looking on the Maltese Business Registry website they have never submitted an audited set of accounts in Malta. 5 years of unaudited accounts.
The only audit ever done appears to be in Australia 4 years ago (at the time of the failed NSX listing) when going concern was mentioned in the opinion.
How has this company not been struck off in Malta?

Veritas26

Moralltach Holdings Limited struck off by the Companies Registration Office in Ireland in March 2020.

Caveat Emptor.

littlevillage

This thread gave me a good laugh today :-)