American Graphite Technologies (AGIN)
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With 3D printing and graphene both seen as disruptive technologies, a company that intends to do both may sound very appealing to investors. In a previous article titled “The Dangers of Investing in Over The Counter (OTC) Stocks“, we provided a number of examples where companies used the word nanotechnology to promote themselves and consequently lost investors all their money. One OTC company that recently announced their intent to move into the 3D printing of graphene is American Graphite Technologies.
About American Graphite Technologies
American Graphite Technologies (OTCBB:AGIN) was incorporated in the State of Nevada on June 1, 2010. Originally AGIN started out as a development stage company intending to create a portfolio of products and services controlling heating, ventilation and air conditioning making them less time consuming, easy to manage and leveraging the quality of life of every member of a family. They could not raise capital for this business plan so in July 2012 approached a private US company for an option to participate in a 100% interest in certain property rights but were unable to close that acquisition. In January 2013, AGIN undertook the staking of certain mining claims in Canada in an active area of graphite exploration. AGIN had intended to undertake an exploration program on the claims during 2013 but was delayed in getting a proposal underway by a qualified geologist and by a lack of adequate funding. Given the fact the company has never generated revenues and seems to have difficulties raising funding, the share price performance reflects this having lost 77% of its value since it floated:
The company’s current assets total $286 thousand consisting of cash and prepaid expenses yet AGIN’s market cap is currently $16 million. Rick Walchuk is the appointed President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Treasurer, Secretary the sole member of AGIN’s board of directors and their only officer. Bloomberg Businessweek has a bio on Rick Walchuk which claims at one point in time he was also President, Chief Executive Officer, Chief Financial Officer, Treasurer and Secretary of a company called Viosolar Inc. According to Google Finance, Viosolar would have lost investors 96% of their investment and the Company no longer trades.
Conclusion
In addition to mineral exploration, the company has also entered into a non-exclusive technology License agreement for patent and trade secret technology in the field of graphene oxide or “Bucky” paper with Cheap Tubes, Inc. An individual named Mike Foley is stated as the only shareholder of Cheap Tubes. Relating to this agreement, AGIN gave Mike Foley $170 thousand and listed this under assets as prepaid expenses. Just last month Azonano published an article discussing “Project P-600” which is a project initiated by AGIN to be administered by The Science and Technology Center in Ukraine (STCU). This project involves a scientific team consisting of 10 scientists who will examine graphene as a working material for 3D printing. With AGIN being a $16 million company with one person as the sole officer and $286 thousand in assets, investors should ask themselves just what exactly they are purchasing if they buy shares in AGIN.
Share
AGIN is basically an otc exchange traded startup, so let a young company be a young company until it grows. They just raised $600k to fund research at Kharkov. The stock hasn’t come back from the low-priced share issue yet, due to obscurity, volume & people flipping their shares for a quick payoff. That doesn’t mean it won’t.
AGIN secured patent rights of what that Kharkov research yields. 3DP is hot. So is graphene. As startups go, they all have risk; they don’t all have a reason to expect reward. This one does… in spades.
Don’t blame the CEO for something which isn’t here and now. He has a track record of trying. He’s persistent. This one could pay off. The research team will have alot to do with what happens next. They are PhD’s and weapons researchers being paid with American dollars in an eastern block country, where the money is efficient… don’t underestimate them.
You categorically omitted everything good, I see. Are you short? If so, I recommend you cover at any price, because AGIN has the potential to grow …mushroom, really… it’s coming off the floor of an all time low, and might never drop to those levels again. That is a disaster scenario for you. So just cover.
Sam should I still invest in AGIN
Sam,
Thank you very much for your feedback. As noted in the “About Us” section, you will see we never short any stock discussed on this site. In referencing our previous article on OTC stocks:
https://nanalyze.com/2013/08/the-dangers-of-over-the-counter-otc-stocks/
we give just a few examples of the many, many, OTC companies that have lost investors money over time. Most investors would agree that OTC stocks need to be heavily scrutinized for red flags and extreme levels of due diligence should be performed prior to investing. Note that most OTC companies cannot be sold short and any sort of scrutiny is often met with suggestions of a short conspiracy.
In this case we took a company that was featured on the news site Azonano recently and pulled info from the latest 10-K filing for this article along with the bio of the CEO from Bloomberg Business week. You will find everything factual and if you would like to append everything good that you believe was omitted in a comment it would be welcomed.
Hi Nanalyze,
Thank you.
Nanalyze Said: “if you would like to append everything good that you believe was omitted in a comment it would be welcomed.”
In response to that,
http://seekingalpha.com/instablog/14354072-herbert-samuel-jennings/2374332-american-graphite-stealth-3d-printing-startup
–Sam
How do I invest in AGIN without being an institutional investor.
Hi Marcos. AGIN is publicly traded under the ticker AGIN.
American Graphite Technologies (OTCBB:AGIN)
Graphene will and is being used in cell phones and its chips as well as the cases and foundation of the cell phones for Apple and Samsung.
Vehicles are now using Graphene and the increase will be over 40,000% over the next year because its cheaper than steel and will last much longer and will not rote either. 1000% stronger than steel.
Graphene AGIN is going to become the best Graphene stock of the century to own, you will see shortly in 2017 or sooner…
Hi Jeffrey,
Our readers know not to invest in any OTC stocks EVER and that includes AGIN. You should read the below articles to see why:
https://nanalyze.com/2013/08/the-dangers-of-over-the-counter-otc-stocks/
https://nanalyze.com/2016/04/18-reasons-not-to-invest-in-penny-stocks/