Global Earth Energy, Inc. (OTC:GLER) Tanks Vigorously on the New Joint Venture
09 Dec 2010

Global Earth Energy, Inc. (OTC:GLER) share price seems to be climbing rapidly down from the highs reached since the end of last month. Yesterday, the company announced its next in row joint venture, but the market looks tired of seeing only PRs and no results from the company.

On the released big deal to add a $20 million hard asset to Global Earth’s balance sheet, the share price of GLER stock added another subsequent drop off yesterday. The shares closed the market 9.09% down at $0.009 and the volume was the highest ever for the stock, reaching almost 28 million shares. The recent facts about the company unfortunately do not suggest that this new project will add the missing fundamental value to its business.

The previous broadly advertised joint venture with a Brazilian company came out at the end of November and the joint business opportunities included basically the development and sale of carbon off-set credits related to a property of the JV partner located in Brazil. GLER press release was highly exhilarated, projecting a minimum of $220 million in gross revenues. Though, a related SEC filing revealed an unmentioned in the PR compensation agreement for the JV with an investment fund.

According to that agreement, GLER issued over 62.6 million shares of common stock to that investor, along with a cash payment of $120,000. Moreover, it looks like the company has various other compensation agreements of that kind, resulting in a bunch of “Joint Venture Compensation Stockholders” holding about 40% of GLER outstanding shares.

But not all of GLER former partnerships were that successful. Last Friday GLER filed with the SEC that a previously signed merger agreement has been canceled under unclear circumstances. More interesting is though that the intended merger partner was allowed to keep the issued to him 65 million shares of GLER common stock, again for an unknown reason.

In the meantime, the company filed also that it will not be able to submit on time its annual report. Still, the latest available financial reports show that GLER had in the last three reported quarters zero cash, minimal assets and liabilities of almost $3 million. At least the company’s profile seems to make sense, saying that Global Earth’s main activities are to vigorously pursue joint ventures in the green energy sector.

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