12-223MR ASIC issues warning about promotion of Cycclone Magnetic Engines, Inc. and Roadships Holdings, Inc.
Tuesday 11 September 2012
ASIC has issued a warning to consumers about the activities of Robert George McClelland (McClelland) regarding his promotion of investments and share placements in Roadships Holdings, Inc. of Delaware USA (Roadships) and Cycclone Magnetic Engines, Inc formerly of Nevada USA (Cycclone).
ASIC is concerned that McClelland, of Goonellabah, NSW, has influenced investors to buy shares in the companies by suggesting that Roadships and Cycclone were to list on the US NASDAQ stock exchange or the German DAX index and that as a result of this, the price of the shares in Cycclone and Roadships would increase substantially. ASIC believes that there was no reasonable basis for the statements.
ASIC believes that McClelland has promoted investments and share placements in Roadships and Cycclone by suggesting that the companies have developed revolutionary technology in circumstances where he should have known that such statements were false or misleading.
In 2009 the Queensland Supreme Court found that Cycclone had engaged in misleading and deceptive conduct in relation to the promotion of the Cycclone magnetic engine on the Cycclone website. (refer: 09-134AD)
ASIC Commissioner Peter Kell said investors need to be cautious when dealing with overseas registered corporations.
‘Because the fundraising has been undertaken on behalf of overseas registered corporations it limits the protective measures that ASIC has available to assist consumers. Once your money leaves this jurisdiction there is little or no hope of getting it back,’ Mr Kell said.
The misleading and deceptive conduct identified by the Queensland Supreme Court related to the representation on the Cycclone website that the Cycclone magnetic engine worked when the court found that such an engine could not work.
Investors have been told since 2005 that the ships to be used in the Roadships transport concept "were on their way" but this has proved to be untrue. Shares in Roadships, currently listed on the "Over The Counter Bulletin Board" in the US are shown as being worth around one cent.