Kleangas Energy Technologies Inc (OTCMKTS:KGET) Remains Surprisingly Steady

From the triple zero levels all the way to more than $0.02 per share in just over two months. That’s what Kleangas Energy Technologies Inc (OTCMKTS:KGET)’s stock has done since the beginning of December and we have to note that this is quite an achievement, especially when you have in mind the pump that the ticker went through a couple of weeks ago.

Even now, when there’s no promotional coverage for KGET, it’s managing to remain incredibly consistent. Having read through all the news that has come out of the company headquarters, however, we can see that this isn’t really that much of a surprise.

KGET announced the acquisition of a private enterprise called Green Day Technologies, Inc at the beginning of December and this gave the ticker the initial push. Twelve more press releases have hit the wire since then and, as we mentioned in our previous articles, they all sound mightily optimistic. The number of outstanding shares was dramatically reduced, Bo Linton (KGET‘s CEO) made several updates on the company’s situation, and three orders worth tens of millions of dollars were received and accepted by the new subsidiary.

It looks like the acquisition from December was just what was needed to get the company off the ground. With millions of dollars in revenues coming, it’s just a matter of time to see some truly incredible growth in the share price. But are things really so simple?

If the press releases are to be believed, KGET‘s new subsidiary will need to produce and ship huge amounts of pellets and at this point we simply can’t be sure if they will be able to keep up with the demand. The reason for this is very simple – we have absolutely no idea what their financial situation is. Normally, when similar acquisitions are made, the publicly traded enterprise publishes a pro-forma financial statement of the new daughter company, but with KGET, this is simply not the case.

We did some digging around, however, and we found out that Green Day Technologies, Inc. has been around for quite some time. As you can see from this document, it was previously known as GDT Tek, Inc. and was publicly traded under the symbol GDTK. They stopped filing their financial reports in 2012 and the stock was revoked July 2013, but not before it underwent several promotional campaigns.

As you can see from our articles on GDTK, the company was in a pretty sorry state back in 2012 but we should note that things might have changed since then. After all, KGET filed the 8-K forms about the huge pellet orders which should mean that the deals are legitimate. Is that really the case though?

We would like to draw your attention to one of the first agreements that was signed on December 31. As you can see from the 8-K, it was with a company called Peniel Trading Korea who were going to distribute KGET‘s products in South Korea. Two weeks later, the agreement was mysteriously terminated and all subsequent contracts reported by KGET are with unnamed entities. What could be the reason for this?

We can’t be sure, but we do know from January 7’s 8-K that Peniel Trading Korea is led by a person called Bryan Sangwook Kang. We found his LinkedIn profile and, as you can see from this screenshot, he has a few things to say about Bo Linton and KGET.

Of course, it might be a case of a simple misunderstanding. There is also a chance that Mr. Kang’s profile is fake, but it’s clear that some of the discrepancies certainly warrant a lot of extra caution.

In any case, we reckon that an enterprise that is closing deals worth tens of millions of dollars should not be using a virtual office as the location of their company headquarters. The same suite, by the way, is also occupied by On The Move Systems Corp (OTCMKTS:OMVS).