Panorama Synergy (PSY.AX) is a listed securities fraud with links to corrupt politicians and convicted share manipulators. After issuing 347m shares at $0.003 in October 2013, bringing total number of outstanding shares to 474m, Panorama Synergy was ramped to $0.46 in sharply delineated steps over the next few months. This 15,000% ramp brought the company's "market" cap to $218m in September 2014. Before raising capital, Panorama Synergy had a net asset deficiency of $400K.
Purportedly a technology company, Panorama has had negative earnings and cash flows for the past ten years. According to its latest annual report, Panorama Synergy's assets comprise of $1.2m in newly raised cash and a licensing agreement with the University of Western Australia (UWA) for certain microelectromechanical devices. Although Panorama regularly uses misleading phrases such "the company's patented technology", Panorama does not actually own these patents, rather UWA does.
The purported basis for Panorama's "market" cap of $218m is a five-year licensing agreement with UWA, entered into in January 2014. Assuming that Panorama is not a blatantly manipulated listed fraud (which it is), the market value of this licensing agreement is therefore close to $218m. The natural question is then how much Panorama paid for this priceless licensing agreement? If UWA did not receive fair compensation for this invaluable licensing agreement, but rather gave it to a related party at lower than its market value, then UWA officials are guilty of fraud.
The Karam family has had previous business dealings with the Obeid crime family, as shown by ICAC hearings, although they later had a falling out over the botched Australian Water Holdings scam. (CORRECTION: This post originally and incorrectly stated that the company secretary of Panorama Synergy testified for ICAC. This is a different Anthony Karam.) Another director, Jeff Braysich, was convicted of share manipulation in 2007. The conviction was later overturned on a technicality. The scheme Braysich was convicted of used wash trades, i.e. sham trades between related parties, to fake market prices. Such wash trades could, for example, be used for ramps.