In Part 1 we took a look at some of Tassiopoulos’ early associations with stock promoters. In Part 2 we’ll dig into his first executive experience, taking control of a publicly traded shell company with several colleagues, and working as CEO of a privately held health care devices company.
In 2000, Tassiopoulos, Steve Garner (President of Playandwin, see Part 1) and several others bought control of dormant shell company Koda Resources. They bought a 3 million share block (total outstanding was 4.5m) at an undisclosed price with the stock trading at $.75 at the time.
Intravest Capital, a company controlled by Peter Tassiopoulos and another individual, were then awarded 90k options at $0.60/sh for its “consulting services in locating one or more business opportunities to be vended into the company…”
Soon after, on November 30, Koda Resources announced it had signed a non-binding letter of intent to merge with SDL Technologies, a “specialist contract supplier of electronic circuit board assemblies…”.
n April 2001, Koda announced that it was advancing $40k to SDL to “help offset unforeseen expenses.” Later filings suggest this amount grew to $140k.
On May 21, 2003, 18 months after announcing the transaction with SDL Technologies, Koda announced that it was no longer proceeding with the business combination owing to SDL’s filing for bankruptcy on April 23, 2003.
Also announced on May 21 was the fact that the Company had begun negotiations with African Gold Group toward a business combination.
Sometime following the African Gold Group announcement, Peter Tassiopoulos joined Koda’s board of directors and became president, replacing Stewart Garner.
On October 1, 2003, Koda announced it had entered into an agreement with African Gold Group. The deal would see Koda acquiring all 14.3mm African Gold Group shares with the issuance of 48.9mm shares of Koda on a 3 for 1 basis. Following the deal a 1 for 3.5 share consolidation would be undertaken.
Later that month African Gold Group announced it would issue 2mm special warrants at $0.60/sh via a financing with Sprott Securities. Given the 3 for 1 exchange ratio, this financing implied a value per Koda share of $0.20/sh – significantly below the price at which Koda shares closed following its change of control.
On February 5, 2004, the deal closed. Initial trading of African Gold Group following its merger and share rollback was around $3/sh or roughly 86c per adjusted Koda share. However, African Gold Group would fall to about $1.20 by the end of 2004 or about 35c per Koda share. Today African Gold Group trades for about 18c or roughly 5c per Koda share.
It is clear that Tassiopoulos was intimately involved in Koda Resources beginning with his ownership group taking control of the Company in April 2000. He and his partner were paid consulting fees in common shares and his former compatriot at Playandwin, Stewart Garner, became President. Through this time the Company pursued a merger (and advanced $140K that was likely never repaid) over 18 months with a company that eventually went bankrupt, negotiated a merger with an African gold company which would fall about 65% in less than a year from its initial print. The investors which hopped on board following Tassiopoulos and Garner’s takeover of the shell company would eventually lose most of their money depending on when they got out.
But, judging by Tassiopoulos’ LinkedIn page, he came to the rescue of Koda Resources:
We’ll let you be the judge.
Igeacare Systems 2004 – 2008
IgeaCare was and is a private company so we will have to take Tassiopoulos’ on his word that he was CEO of Igeacare for 4 years and grew its sales and staff by the amount he claims. But we can dig a little deeper into what actually took place there.
According to this November 12, 2009 court filing, IgeaCare Systems actually went bankrupt sometime in 2009 (shortly after Tassiopoulos departed).
The suit details how 6484093 Canada Inc. (Schwartzco) was not paid $820k commissions owed to it by IgeaCare on IgeaCare’s sales of EMU and SLU devices (small two way communications devices designed for patients and nurses).
IgeaCare was restructured later that year with IgeaCare Solutions acquiring the former IgeaCare Systems assets as detailed in this press release.
We don’t imagine that IgeaCare Systems investors were pleased with their former CEO Peter Tassiopoulos regardless of how many employees he hired or sales he made.
Tassiopoulos materially misrepresented his role with Koda Resources, and his next executive appointment ended in bankruptcy soon after his departure. Both cases suggest that Tassiopoulos’ was not a successful dealmaker or executive, in stark contrast to how he portrays his past.
Stay tuned for Part 3.