Alternative Energy Partners Inc (OTCBB:AEGY) Is turning Into An Adventure

Until about a week ago, few people were interested in Alternative Energy Partners Inc (OTCBB:AEGY). Then, on May 21, AEGY announced their entrance into the medical marijuana business and the ticker literally exploded into life. The press release itself came online minutes before the end of last Tuesday’s trading session and the next day saw AEGY make a huge run gaining as much as 116% in value. After that they lost 35% in just eight hours, but they still managed to finish the week on a positive note closing Friday’s session 16% in the green.

The volume was absolutely massive as well and all the excitement urged us to write an article about them back on May 23. If you have a quick look at it, you will see that we commented on the inherent volatility of AEGY‘s shares, we talked about their financial situation, the ambitious task they have set themselves and, of course on their partnership with a company that is well-known to us – SK3 Group, Inc. (OTCMKTS:SKTO).

Recently SKTO filed their latest financial report in which they list revenues amounting to $5 million and an almost unheard of (at least in Pennyland) net income figure of around $4.9 million. With that in mind you will probably think that the agreement announced on May 21 will turn AEGY into a solid investment option. Before you go jumping in on the excitement, however, you should probably bear some things in mind.

When you dig around, you will see that the partnership between AEGY and SKTO is not that much of a surprise, really. Open AEGY‘s OTC Markets profile and you will see that a certain Mr. John Burke is listed as the company CFO. When you take a look through AEGY‘s older financial report, you can see that he was indeed part of their management team. At one point, however, Mr. Burke resigned from his position at AEGY and focused on his other job – Consultant at SKTO. Of course, there is absolutely nothing wrong with that, but you should probably keep in mind that the partnership was, most likely, not the result of long and hard negotiations.

But who replaced Mr. Burke as AEGY‘s CFO? It was a person by the name of Michael Gelmon who took on the role of sole officer. While he was at the helm of AEGY, there was a change in the controlling interest of the company and another publicly traded venture – Novation Holdings Inc (OTCMKTS:NOHO) f/k/a Allezoe Medical Holdings, Inc. (ALZM) – received a total of 40 million shares of common stock as well as 5 million shares of convertible preferred stock which gave them 64% of voting rights.

Can you guess who the CEO of NOHO is? That’s right, it’s Mr. Michael Gelmon. Shortly after NOHO gained control over AEGY, Mr. Gelmon resigned as sole officer but not before he increased the number of authorized shares to a whopping 2.5 billion. And even though he is no longer connected to AEGY as an officer, he still has control over the company through the massive amount of shares that NOHO own.

Here’s another thing to consider. When you open NOHO‘s profile on the OTC Markets, you will see that a person by the name of Michael Choo is listed as director. Search for SKTO‘s profile, and you will see that the same person is quoted as the Chief of Operations.

All these things beg the question: “Are these people really that good at multitasking?”. Whatever the answer, we feel that the coincidences are getting far too many for our liking.

Of course, you might think differently, but whatever your opinion on AEGY is, be sure to perform an extensive research and don’t forget to consider the risks of losing your investment carefully before you make any quick decisions.