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http://tinyurl.com/634ew
You are here:
FreeEnergyNews.com > Directory > Perendev > March 2004 Solicitation

CAUTION:
Perendev Power Solicits Investment & Licensing Payments

Perendev Power International AG sends letter to individuals who have expressed an interest in their technologies, primarily their all-magnet motor.  Track record gives reason for pause.

Page Contents:
Preface -- a Caution • Email Message from Perendev • Attached Document

Preface -- A Word of Caution

by Sterling D. Allan
with Editorial assistance from Mary-Sue Halliburton
March 12, 2005

I have known Mike Brady since May 2002.  At that time, when I inquired about his magnetic motor, he said, "yes the motor is running and almost ready for the market, only the commercial packaging [is] still to be done."  You will see below, in a letter soliciting licensing and investment funds, that he is still representing himself and his company as being this far along with the magnet motor.

As one who has been intimate to the workings of Perendev (I own Perendev.com and I built a team to spearhead the manufacturing and marketing of his magnet motor in North America), and as one who has stood by Mike through much skepticism and criticism, I feel I need to issue a caution in regard to this most recent development, as it involves the actual solicitation of funds.  Previously this has not been the case.

Since our team was unable to verify what stage of development Mike has really reached with his magnet motor and other technology claims, we cannot vouch for their readiness to be marketed. I do believe he has created something worth while.  However, in the past I have observed him to exhibit a strong tendency to talk far ahead of himself, thinking he’s much farther along than he really is. Therefore it is important to take all statements with a grain of salt, and independently  verify any claims, which can be difficult not only because of the distances involved, but because of the difficulty of pinning Mike down at a time when he actually has a prototype to view.

I do not believe Mike is intentionally running a scam operation.  He believes in what he is doing.  I will say, though, that his integrity quotient is among the lowest I've ever encountered of those I would yet consider friends.  He makes promises readily, but seems to lack a built-in drive to carry through with his promises or explain why he is not able to deliver as promised.

One of the most blatant and significant examples of this, from a business point of view, was his continued promise of patent information (never delivered) as well as a skeptic proof demo video (never arrived).  The one video he did produce showed a walk-around after acceleration, not during.  An in-person demonstration was sought and promised on numerous occasions but never materialized.

The first statement in Appendix A below is problematic, in which the person signing the document for investing or licensing supposedly certifies that he/she "has had a full and complete opportunity to ask all questions concerning Perendev Power International AG and its proposed business operations."  Unless the new people Mike has aboard his company are more forthcoming in cooperating with potential investors by providing answers to important questions, this provision is not likely to be satisfied.

Another red flag here is that the solicitation mentions three new products: "zero-point sparkplugs, friction free lubricants and UV water treatment products."  There is no information at this time on the perendev-power website about these new products that are allegedly ready for market.  The email and attachment give no information about them.  No data, no photos, no patent numbers, no specifics about function or purpose.  You would think that if they really did have patents, they would put patent numbers next to each item claimed.  That's easy enough.  The fact that they don't is a strong indicator that they are bluffing on at least one of the products.

Furthermore, the statement says that there are no other products like these available.  I can say that I've heard a number of claims to related magnet motors
gearing for market.  Mike's might be the furthest developed according to their public pronouncements, but we don't know the details about other groups who might be more discrete in their pre-market development phase.

There are several other anomalies about this solicitation, such as the high price for licensing and for stock shares. 

My personal suggestion would be this.  If you put money into this, be sure it is money you can afford to lose.  Those who take risks in business don’t do so recklessly. Successful venture capitalists read the fine print, check the patents, and attend the product demos; they don’t put cash on the table for wishful thinking or vague promises. The old expression “caveat emptor” (buyer beware) is a good one to keep in mind for all types of investments.

It would seem that in order to get enough information to fulfill the Appendix A provision about having all major questions answered, that one would need to sign a non-disclosure agreement to get access to the information required, and either be able to attend a demonstration in person, or have access to a private website with adequate information provided.

I would hope that Mike's team can pull off a miracle and actually deliver to market one or more of the products they are presenting here.  The ideas sound great.  Maybe some day Perendev-Power will be a tremendously successful company.  Any company at its outset has its weak points, including flaws in personalities and even some thin areas in its individual and group level of integrity. Successful companies are able to weed out those weaknesses, pull together on a proper footing of good business practices, and ultimately offer pre-tested, viable products to investors first and then to customers.

Be sure to do your due diligence such as seeing the relevant patents claimed.  Don't depend on this coming through anytime soon, if at all.  It's not just about whether or not the technology is viable, but it hinges on whether the business team can pull it off.  My hope is that they will, for the sake of the planet.


Nov. 18, 2004 photo of Mike Brady's Perendev Magnetic Motor

 

Email Message

The following is an email message that was mailed to an individual who at one point had sent an inquiry to Perendev Power about possible purchase or investment.  This person had not signed an NDA with Perendev, but was one of possibly thousands that had sent such an inquiry.  The email was addressed to them specifically, with first name in the salutation.  They have forwarded this to us with permission to publish it.   This message was accompanied by one attachment.

This is quoted verbatim, minus the removal of the recipient's name.

From: admin [admin@perendev-power.com]
To: ***
Sent: Friday, March 11, 2005 9:48 AM

Dear ***

thanks for your letter…you obviously have deep concern for the environment. It is important that we all make a concerted effort to change the status quo, and this is a start.

We need to schedule a meeting to seriously discuss your interest or process you as a potential investor.

Whether you buy, invest or act as a distributor for alternative energy and environmental products you are protecting the future for our children.

Re your present interest I have attached some data on our products and a selected client INVESTMENT circular for you to consider your potential involvement or share it with someone you know who also has a keen interest in alternative energy.

The rest of this e mail gives you a little more data about operational matters and the market factors. We are looking to find distributors for all major territories.

                                                            General Outline

Individual situations differ but the general rule is as follows for most average sized countries, population-wise and economic development-wise. Large countries like Russia , India , China etc will follow the USA example and be subdivided into states, or subsidiary regions for territorial coverage.

For instance, Dealerships in USA will be available on a state wide basis, most probably given over to large businesses who can undertake a regional license and then form dealerships. To give an approximate example, a small state like Wyoming would rate a license fee of around $1 million whereas a larger states such Mississipi would come in at five or six times that figure;

In other countries the measure of market size and potential is obviously based on population, GDP per capita etc, future outlook, so the licensing costs are commensurate to those factors.

Any license fee charged would not only cover the magnetic motor, but would be inclusive of the marketing and production rights for the liquid nitrogen motor, and the other environmentally products mentioned. Eg zero-point sparkplugs, friction free lubricants and UVwater treatment products., (all latest technology products, with patents).

Private Investment in the Perendev Power International AG company, is another, less expensive option. Here an investment can be from as little as $3250 for a block of 5 shares. There is no restriction on the number to be taken up, subject to a maximum value of $3.25 million for 5000 shares. Only 10% private investment is currently anticipated.

The anticipated prices are not totally finalized. Our products are normally quoted in Euro (one Euro is approx $1.30) and it would be approximately $13000 for the magnetic motor,$3500 nitrogen motor, and the zero-point spark plugs and friction-free lubricant would be approximately 10% below any existing competitive product. Time scales will depend on the local situation, because we intend to have manufacturing agreements in major territories. Service and maintenance issues are expected to be small and will be dealt with once the roll-out is planned.

Most of the current delays in the roll-out are due to careful elimination of potential problems that could arise in mass production if we were too hasty. The best material/machine combinations are critical to achieving a cost effective product that the market can afford, and the distributor is happy with.

NOTE that all these products are unique and there is no comparable product anywhere yet. So don’t let anyone convince you otherwise.

The UV water system would be around $2000. Margins for all the products will be around 40% GP, and central marketing support will be provided.

The relative weights of the products would be approximately 100 kgs magnetic motor (1mtr cubed), 10 to 20 kgs nitrogen motor (0.5 mtr cubed) and 5kg for the UV system.

The zero-point spark plugs use 30% to 50% less fuel and give better power, and vastly reduced emissions. There is no comparable conventional plug on the market; it is unique cutting edge technology, as are the other products in the range.

Please read the literature and complete Appendix A if you are interested in an investment (or know someone who is) Please pass it on and ask them to return it to the address shown, or e mail it back to this e mail address or our Swiss office.

Thank you for your interest and support.

Brian

 

Attachment

The following was sent as an attachment accompanying the above email message by Perendev.  The file was named "a LETTER re INVESTMENT.doc"

Fonts and typesetting is not exact but close.  Text is verbatim:

Dear Fellow Environmentalist

 Re YOUR VALUED INTEREST in ALTERNATIVE ENERGY and PPI AG

Thank you for your interest and concern for Perendev Power International AG’s activities in Alternative Energy and specifically how you can become more involved with us in the drive to make the earth a more pollution-free environment; a cleaner, better place to live.

Although P.P.I. AG may be considered insignificant, compared to the oil giants, we know that we are making a difference. Shortly, we will be posting future plans explaining this on the Perendev web site. As private individuals, we can all make a difference…..we have a free choice in the products that we buy and how we invest our money. This interest of yours is an investment in our environment. Without it the world is heading for a disaster.

We are based in Switzerland , and PPI AG’s products, represent a very good business opportunity. The world is suffering with dreadful pollution, increasing global warming, toxic greenhouse gases and massive depletion of non-renewable natural resources. It leaves us with very little choice.   We have to find new alternative energy sources. We must stop the debilitating effect of toxic wastes that are poisoning our air and our atmosphere, and we must conserve scarce natural resources for our children’s future.

This is where Perendev, as an environmentally friendly organization; a green company, makes a difference. Already we have products that can help achieve this goal. They are based on cutting edge technology. We are now working hard to bring these, and other environmental products into global mass production so that everyone can benefit.

There are two ways to assist with this drive.

1                     As a private individual you can invest in alternative energy companies and their products through the purchase of shares that are used to develop new products. This is vitally necessary, ongoing Research & Development.

2                     As a business you can also purchase shares via a private placement investment and/or you can negotiate a licensing agreement to market these products. This ensures a widespread benefit from the products application.

For those interested in the business option PPI’s main marketing effort is focused on establishing a global distributor licensing network. We would need to know the products, or territory that you have an interest in, and what support you have there, and the capital that you have available for the project. Small investor groups can also participate.

We have three unique product groupings, all in the final stages of development, nearing market readiness, and all very advanced energy and environmentally friendly concepts.

1          MAGNETIC motor

            2          Liquid NITROGEN motor

3          ENERGY SAVING products e.g. (a) the latest technology Zero-point   sparkplugs for greater petrol savings and low gas emissions, and

(b) Friction Free Lubricants that reduce wear and tear and also save petrol. Another important product in this category is (c) the UV WATER treatment system that totally cleans infected, domestic, or industrial water to make it bacteria-free, clean and odourless.

The first two product groups are totally NEW cutting edge technologies to replace fossil fuel energy sources that continuously pollute our atmosphere. The third group of products will greatly ASSIST with environmental problems by REDUCING Pollution and SAVING valuable natural resources. We want you to share in our success and ensure that our combined efforts do indeed make a difference. Please read and return the attached offer (APPENDIX A) if you wish to join us in this worthy fight against environmental destruction.

Sincerely,  

M J Brady (Chairman of PPI AG)                                                                           March 2005

   Perendev Power International  Development & Company History

1                     Statement of Company Position

PPI AG is a Swiss company involved with cutting edge technology in the area of alternative energy. It has interests in magnetic motors, liquid nitrogen motors, motor industry components and clean water. It has developed several unique prototypes and patents and has the marketing rights for several other world-first patents, formulations and processes. The company has reached a strategic point where it needs to inject further capital for increased momentum to capitalize on 5 years of development and launch several of these products onto the world market. It is offering up to €2.5million ($3million) worth of shares for general investment and also accepting requests from interested businesses to take a manufacturing, or marketing license for certain territories.  

2                     Short History

The company was originally formed as a “green” company in South Africa in 1999 in an effort to look for alternative solutions to the pollution generating, fossil-fuel motors that are threatening our environment. We worked originally on battery assisted motors and then pioneered magnetic motors and later developed a liquid nitrogen motor. As the prototypes were developed further we began to outstrip our internally generated resources and moved to Europe in autumn 2004 and allowed minimal private investment.

3                     Company Legal Structure & Scope

Perendev Power International AG is registered in Switzerland with a nominal capital of 100 00 shares of one Swiss Franc each. It has an operating company in Switzerland and owns Clean Water Products GmbH, a 100% subsidiary company in Austria that developed, manufactured and markets a UV system of cleaning water. It also has relationships and associate marketing agreements with several other groups in UK , Western Europe, Eastern Europe, the Baltic regions, India , Africa, USA , Middle East and the Far East .

4                     Directorate & Management

All six PPI directors form the international management team and they are mainly based and operating from Europe but they also operate out of USA and Africa . The Chairman,  M J Brady and Legal Manager, Hans Badenhorst are South African, the International Business Manager, Brian Richards is British and the remaining three directors are German. They are Dr Hans Huening, economist and international tax advisor, who is partially based in USA , Helmut Huening, accountant and financial advisor, based in North Germany and Kurt Schaller, electrical engineer and CEO, based in Bavaria .   

      5        Products

Very broadly speaking we have three unique product groupings that are being developed and are either market ready, or in the case of the motors, are nearing market readiness.

             They are:

      1    MAGNETIC motor

      2    LIQUID NITROGEN motor (both are advanced Alternative Energy concepts)

                                    and

      3    ENERGY SAVING products such as the latest technology Zero-point sparkplugs for greater petrol savings and low gas emissions, and Friction Free Lubricants that reduce engine wear & tear and also save petrol. Another important product in this category is the UV WATER treatment system that totally cleans infected, domestic, or industrial water to make it bacteria-free, clean and odourless.

The first two products are totally NEW cutting edge technologies to replace fossil fuel energy sources that continually pollute our atmosphere. The third group of products, especially the sparkplugs, will greatly ASSIST with environmental problems by REDUCING Pollution and SAVING valuable natural resources.          

6                     Projected Cash Flow

projected 5 yr revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

E000's

sales

costs

G Profit

GP%

 

 

 

 

 

 

 

 

 

 

 

 

 

yr1

63,260

41,360

21,900

35%

only 5000 magnetic and 5000 nitrogen motors sold

yr2

96,330

59,290

37,040

38%

lower costs, 8000 magnetic & 8000 nitro motors sold

yr3

168,250

101,400

66,850

40%

lower sales prices, 15000 magnetic 15000 nitro sales

yr4

297,540

183,550

113,990

37%

lower sales & cost prices 30000 magn, 20000 nitro

yr5

460,900

269,500

191,400

41%

4 Mio sparkplugs 50000 magnetic, 25000 nitrogen

total

1,086,280

655,100

431,180

40%

 

 

 

 

 

7                      Share structure

The percentage shareholding held by the Directors of Perendev Power International AG is currently 84% with a further 3% held in private hands by minority shareholders. A block of 5 000 non voting shares are available to be taken up by interested investors at €500 each (approximately $650) which will bring the total number of minority shareholders to approximately 8%.  The minimum value of the shares that will be accepted for allotment is 5 shares per individual allotment. There is no maximum amount per request.

If the interest level is such that the requests far exceed the offered number of shares the directors of Perendev Power International will give consideration to releasing more shares, or prorating the requests for allotment.

The shares of Perendev Power International AG are not registered yet on any recognized stock exchange but the company has the intention to get a listing on the London Stock Exchange (A.I.M market or Full Board) or on NASDAQ, New York, (Full Board ) within 18 months.

8                     Offering

The company offers, in a non-brokered, private placement:

Up to 5000 non voting B class shares at an amount of €500 each
(or US$650) per share, to interested parties and businesses
.  

This offer remains open until end of April and all allotments will be on a first come first served basis. The directors reserve the right to pro-rate any oversubscription and to close the offering at any time prior to April 30th at their discretion. Payment to be made in €  Euro currency only.

Details of the share subscription agreement entered into with Perendev Power International AG is attached as Appendix A to be completed by the investor and can either be returned by e mail to admin@perendev-power.com             or mailed to Gotthardstrasse 20, CH 6304 Zug Switzerland together with the appropriate amount (in € Euro) for the requested number of shares.

PRIVATE PLACEMENT SUBSCRIPTION FORM
(APPENDIX A)

Perendev Power International AG

   Gotthardstrasse 20, CH 6304 Zug,
                                
Switzerland

  1. Subscription

I hereby subscribe for                      shares of the Common Stock of Perendev Power International AG for a total investment of                                  EURO and enclose a check, bank draft or express money order payable to the Company.

I understand and agree that the proceeds of my subscription will not be held in escrow, but will be immediately released to the Company upon acceptance of my subscription.

 I further understand and agree that the Company is presently undertaking equity financing and that in the future it may undertake additional equity financing, either public or private, or both, which could have the effect of diluting the percentage of ownership represented by my investment herein.

2. Refusal

The undersigned understands that you reserve the right to reject this subscription, in whole or in part, in your discretion, for any reason whatsoever.

3. Disclosures and Evaluation Acknowledgement

STOCK SUBSCRIPTION AGREEMENT AND INVESTMENT LETTER

for
Perendev Power International AG

The undersigned hereby acknowledges and represents that he/she:

a) has had a full and complete opportunity to ask all questions concerning Perendev Power International AG and its proposed business operations;

b) has received full and complete information to allow for a proper evaluation of the risks and merits of the investment;

c) has been fully informed as to the circumstances under which he is required to take and hold the securities;

d) is an unsophisticated investor who, either individually or with his representatives and advisors, is fully aware of all the speculative aspects of the investment.

4, Common Stock Acquired as Investment

I represent that the shares of Common Stock acquired hereby are being acquired by me for investment and not with a view to, or for resale in connection with any distribution of stock within the meaning of the Securities Act of 1933, as amended (the Act)*.

 By such representation, I mean that I am acquiring the stock for my own account for investment and that no one else has any beneficial interest or ownership in the stock, nor is the stock subject to any pledge or lien.

Further, I understand that the stock will not be registered under the Act by reason of specific exemption provided therein, specifically, Section 504 of Regulation D* promulgated under the Act, the availability of which depends upon the bona fide nature of my investment intent as expressed herein.

5. Shares are Unregistered

I understand that the shares of Common Stock, herein subscribed for, are unregistered under the Act and must be held indefinitely unless the shares of Common Stock are subsequently registered under the Act or an exemption from such registration is available.

I further understand that any routine sales of Common Stock made in reliance upon Rule 144* can be made only in limited amounts in accordance with the terms and conditions of that Rule and that, in the case of securities to which that Rule is not applicable, compliance with Regulation A* or some other exemption or registration under the Act* must be made.

 I further understand that no guarantee is made, or can be made, or implied, that I will ever be able to sell my shares acquired herein pursuant to such Rule or any other exemption provision of the Act*.

 

6. Legend of Certificate

I agree that each certificate representing my Common Stock in the Company will bear on its face, back, or have attached to it, a legend substantially in the following form:

"This shares of stock represented by this certificate have not been registered under the Securities Act of 1933*, as amended, and may not be sold or otherwise transferred unless a compliance with the registration provisions of such Act has been made, or unless availability of an exemption from such registration provisions has been established, or unless sold pursuant to Rule 144 under the Securities Act of 1933*."

7. Start-Up Venture and Inherent Risks

I understand and agree that the Company is a new "start-up" venture and, as such, is subject to all the risks inherent in any new or start-up venture and that I could lose my entire investment.

I further understand and agree that no assurance can be given concerning the future operations or profitability of the company and that any financial projections provided to me are based upon certain specific assumptions, and that such projections are merely management's best estimate of the future operations of the Company, provided that the stated suppositions prove accurate and provided further that no other adverse factors develop.

I further consent that you place a stop transfer order on the books and records of the Company restricting the transfer of the stock except in compliance with the terms of this agreement.

* Refers to legislation in the USA

Date, ……………………………..Signature…………………………

Print or type name:…………………………….

Passport Number……………………………….

Address:………………………………………..
              ………………………………………...
             ………………………………………...
            ………………………………………....

Telephone Number:…………………………. 

E-Mail address …………………………………

Bank account number………………………….
          Account holder………………………….
          Branch name   ………………………….
          Branch Code   …………………………. 

Amount enclosed   …………………………….

           Currency Denomination        (to be in Euro)    

Please e mail this APPENDIX A to admin@perendev-power.com, or mail it to the Perendev Power International AG office, together with total remittance in € covering the total shares requested. The Swiss address is   Gotthardstrasse 20, CH 6304 Zug Switzerland

Subsequent Coverage

  • Magnet Motors > Perendev-Power Website Downgraded - Touting an all-magnet magnet motor near market readiness (for 3 years now), downgraded website now claims they are working in association with the European space agency. PerenTech mothballed. (PESN; April 23, 2005)

See also

 

Page created by Sterling D. Allan March 12, 2005
Last updated November 17, 2006

 

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