Algae Dynamics Litigation and InvestigationsSince 2013, NoHedge has assisted investors to navigate U.S. Traded Canadian company space (OTCBB) that has proven to be full of companies actively engaged in deceiving investors. As investors read our expos on Algae Dynamics (formerly Carbon Converted Technologies) today they need to realize that our due diligence process employed similar tools, such as background checks, court records, transcripts, and SEDAR and EDGAR filing analysis that led to the halt and trading of numerous frauds. Today's report on Algae Dynamics combines these approaches and allows us to make our strongest impact of fraud to date: limit public investor losses before it can trade. The choice investors are left to make is very simple: Do I buy Algae Dynamics and wait for the rhetoric that its management and its fee collectors will spout or do I sell out prior to what we believe is the inevitable bankruptcy, trusting in our due diligence and track record? The choice is yours and yours alone to make. We have made ours.Three months ago we released an expos about Algae Dynamics, a Canadian company looking to go public in the United States. These report can be viewed by clicking on either Algae Dynamics: A Questionable IPO or part II, Algae Dynamics: IPO Update from Bad to Worse. Today's update on Algae Dynamics is based on a 10K recently filed by Algae Dynamics with numerous material omissions.Summary Highlights1. 10K filed for 2015 is a disaster and tells a story That Algae Dynamics is out of cash after burning another $1,00,000.2. $3,000 in cash remaining3. $1.8 million in losses in the past two years.4. No revenue, sales or operations. No production.5. $450,000+ in professional fees relating to securities regulator investigations and requests. 6. Legacy Cymat Annual Statements proving a long history of poor management are now online here:1999 Annual Report.7. Cymat 2002 Annual Reportabout Mr Rusiniak & Mr Ramsay8. Sandra Elsleys employment is terminated, she was Algae Dynamics former financer and stock promoter in charge of illegal capital raises in Ontario.9. 10K omits all information and exhibits relating to illegal financial raises and material agreements related to the financer, Sandra Elsley.10. S1 investors can't sell their shares: they are worthless.11. Algae Dynamics is prohibited from trading on any exchange.

ALGAE DYNAMICS RED FLAGS - UPDATED July 17, 20151. From the recent 10K (page 27) Algae Dynamics states: There is no assurance that we will ever obtain a trading symbol from FINRA. Therefore, a shareholder may be unable to resell securities in our company.2. Algae Dynamics is controlled by former founders and management of Cymat Technologies (TSX:CYM), who ran the company into the ground for over $13,000,000 ($13 million) in accumulated losses by 2002. Over 4 years, they decreased annual sales of less than $300,000 per year to $0 in 2002 when Mr Ramsay and Mr Rusiniak were retired from Cymat. Click for the 2002 Cymat Annual statement 3. Algae Dynamics cited bankrupt companies as competitors in their S1 filing. The SEC asks the company on page 8 comment 35, why the company Solazyme Roquette Nutritionals dissolved in June 2013 was listed with a EBITDA multiple.4. In the final year of employment at Cymat, two Algae Dynamics Directors lost $7 million in just one year before their employment was terminated.5. 86% of Algae Dynamics is owned by insiders who paid a total of $100 for all of their shares.6. Like Cymat, Richard Rusiniak, Paul Ramsay, and Sandra Elsley bilked investors for $1.8 million over the last two years and the company has $7,000 $3,000 in cash left.7. No registration, offering, prospectus or exemptions are filed for Converted Carbon Technologies or Algae Dynamics with the Ontario Securities Commission.8. No revenue, product or profit.9. Since our report, Algae Dynamics modified their web site to show that one junior staff position is now filled, in any attempt to make the company look as though some money is being used within the company's operations rather than leaving the company to its Officers and Directors personal bank accounts.10. In 2014, a year total of $29,000 was spent in Research and Development - hardly substantial R&D into new technology. $514 was spent in 2013 according to the latest 10Q. The Company exhausted $1.8 million during that period. In total as per 10K (page 30) , By initiating this process extra research and development fees ($43,222), facility occupancy costs ($26,634) were incurred.11. No independent technology review.12. Management has been paid most of the money raised.13. Capital raised and grants exceeding $2.7M - most of which is accounted for as "expenses" as of 10K. However, the company has not included a total loss to date from inception.14. There are no employees or operations in the United States.15. Money is not spent on technology.16. No money to sustain operations or build a plant.17. Nominal equipment : $67,000 (as per Dec 2014 10Q), despite millions being raised.18. There are no operations, their focus is on shares sales and future share price.19. Offering documents spammed by Sandra Elsley to unsophisticated investors in 2013 and 2014 state future value at $250 million; however, the registration S1 statement and recent 10K proves no revenue, assets or profit.20. Algae Dynamics is was primarily funded by a Sandra Elsley's small group of unsophisticated Ontario-based investors. An illegal raise per Ontario Securities Commission rules.21. The company has pushed for accelerated registration despite serious operating concerns and material omissions.22. No Canadian listing sought.23. Future securities litigation likely from regulators and Ontario investors relating to the Company's prior private financing offerings managed by Sandra Elsley.24. Classic pump-and-dump statements from their investor relations/financier.25. Reverse split prior to S1, masking numerous prior raises at different prices.26. Algae Dynamics goes to a new low in boiler-room share sales: Hired a family therapist to manipulate unsophisticated investors into parting with $1.8 million in retirement funds with the promise of high returns and a pump and dump. Our last report covered the illegal capital raises by Algae Dynamics.27. Engaged an external pump and dump group headed by stock promoter Gerard Mooney.28. Sandra Elsley continues to raise money in Ontario, Canada from unsophisticated investors for going public scams for US Markets.29. Algae Dynamics plans to seek Canadian Government grants for $2 million. This grant service lists Sandra Elsley as a client for Grants Canada.

Algae Dynamics is engulfed in investigations and regulatory requests. They recently filed an audited thin 10K proving still no revenue, sales, cash, prohibited from trading, and no operations. A 10K is legally required to include the years audited financials, material agreements, officer compensation, and any meaningful activity as reported in each 10Q. In Algae Dynamics case, theyve purged all references and documentation relating to the illegal financing by Sandra Elsley, the financial foundation and seed investors of this company. A copy of our findings have been submitted to the Securities and Exchange Commission as well as the Ontario Securities Commission.The Companys 10K claims theyve spent $532,000 in professional fees to go public. Only $41,000 was used for the audit (page 72 of 10K), most of the $490,000 is likely legal fees incurred as a result of securities investigations and demands by authorities. 10K filed June 19, 2015 is full of omissions. For some background information on the financing fraud see either Algae Dynamics: A Questionable IPO or part II, Algae Dynamics: IPO Update from Bad to Worse . In summary, Algae Dynamics paid Sandra Elsley, a marriage and family therapist, to manipulate unsophisticated, unaccredited investors into buying shares in Algae Dynamics, based on false financial information authored by her and detailed below. Her tasks included writing investor documentation, finding investors, convincing therapy clients to invest, and manage investor communications. Since our Expos, numerous potential investors have forwarded emails and documents to us soliciting investment in Algae Dynamics (formerly Converted Carbon Technologies).Click below for some of the documents purporting millions to unsuspecting investors:1. Employment Agreement filed with SEC of Sandra Elsley2. Algae Dynamics Proforma Investor Slide Show distributed by Sandra Elsley claiming high profits and hundreds of millions in value3. Algae Dynamics Business Plan provided to potential investors by Sandra Elsley and Paul Ramsay4. Algae Dynamics Opportunity Overview to potential investors by Paul Ramsay and Sandra Elsley5. Algae Dynamics Offering Memorandum to potential investors by Sandra Elsley6. Algae Dynamics subscription agreement illegal capital raise in Ontario by Sandra Elsley7. Termination of Sandra Elsley filed with SEC in February 2015.

FINANCIAL HEALTH OF ALGAE DYNAMICS as of 10K The financial condition of Algae Dynamics has never been worse: $3000 in the bank (page 35 of 10k). Its founders and financing officer are living in luxury from ill-gotten gains. Algae Dynamics has no operations in the United States but is seeking to take hard-earned money from unsophisticated investors in the US through false claims and fantasy pro formas generated and distributed by Paul Ramsay and Sandra Elsley. Algae Officers burned through 1.8 million in two years.Short Summary Just the Facts from the 10k: Liabilities exceed $890,000 Net loss of past year is $1 million Net loss of past two years is $1.8 million Company fails to report total losses from inception Still no filing with the Ontario Securities Commission as required by Law for the illegal 2013 and 2014 Ontario financings. Algae Dynamics has $3,000 in cash remaining No revenue No explanation as to why the company is prohibited from trade on any stock exchange No further successful financing No breakdown of payments made for illegal financing or shares and warrants distributed for illegal finders fees. No Regulation 506 detailing the S1 shareholders of June 6, 2014This financial house of cards is falling down.

TROUBLING BACKGROUND OF THE FOUNDERS OF ALGAE DYNAMICS

(Paul Ramsay, Sandra Elsley, and Richard Rusiniak at Algae Dynamics)Paul Ramsay, CEO and Chairman and Richard Rusiniak, DirectorManagement claims in their S1 that Paul Ramsay is "Co-founder and former CEO and VP Business Development of Cymat Corp, (TSX:CYM) with a market valuation over $150 million upon his resignation in 2002" and Mr Rusiniak's is similar.

Fact Check:We now have all Cymat Technologies Annual Reports online for detailed review. Cymat Technologies 1998-2002 Annual Reports prove the executives ran the company into the ground and the company lost over $13 million, no sales, and significant year-after-year losses:Year (source: annual reports)Net ProfitYTD accumulated losses

1998$490,000 loss(omitted from AS)

1999$1.4 million loss(omitted from AS)

2000$1.2 million loss$3.13 million loss

2001$2.9 million loss$6 million loss

2002$7 million loss$13 million loss

2003Reduced $2.3 million loss (Algae Dynamic Execs no longer employed)

The inflated share value ($150 million) came from the Internet bubble. The stock became a penny share with massive losses shortly thereafter. Yearly losses were cut significantly when Algae Dynamics managements employment was terminated.Mr. Ramsay's and Mr. Rusiniak's conduct in Algae Dynamics is very similar to the performance of Cymat: Little revenue, no profit, massive losses, emphasis on stock sales.Public Companies operated by Ramsay and Rusiniak have never made profit and investors have always lost money.Since receiving emails and documents from individuals solicited for investment, we learned that Paul Ramsay would forward emails to Sandra Elsley between large companies and himself. The discussions were impractical because Algae Dynamics has no production or sales. Paul Ramsay would further salt the emails by advising Sandra Elsley that the company was a large potential client. Sandra Elsley would then forward these emails to unsuspecting investors in an attempt to manipulate an investment. This scheme was used to push investors into believing large companies were interested in buying large volumes of product when in fact they were not and no such production existed.

SANDRA ELSLEY, former VP CommunicationsSandra Elsley S1 Biography (pg 35): "Over 25 years of experience in human relations and the organizational development field as a communications and relationship expert, working in government, corporate and private sectors. Extensive experience developing, marketing and managing peak - performance programs to enhance individual and company dynamics in Canada and internationally. Was involved in the start up of an Ontario based company, was instrumental in raising funds and working as VP Corporate Communications/Investor Relations - share price went from $0.50 to $7.70. Has privately owned and managed a successful psychotherapy and consulting practice since 1991."Fact Check: SEDAR and EDGAR do not reveal Sandra Elsley has ever worked for a public company, much less one that had a share price that went from $0.50 to $7.70. There is one public filing from a non-public company that states Sandra Elsley's employment with the company was terminated with cause. Algae Dynamics, as well, filed a mutual release with Sandra Elsley terminating her employment as the disastrous 10Q was filed, adding to Sandra Elsley's lengthy list of failures.There are numerous cons, lawsuits, judgments and court orders against Sandra Elsley in Canadian, US, both in various courts.A family therapist, Sandra Elsley, was an officer of Algae Dynamics titled as "VP Corporate Communications" until a few weeks ago. According to a contract filed in the S1, in an unusual role for a family therapist, Sandra Elsley's job was to manipulate money from her therapy clients, write investment documentation, and handle investor communications. Most disturbing is that Sandra Elsley convinces vulnerable therapy clients from her therapy practice to invest into her penny stock promotions and schemes. Pacer court records and other public court filings detail numerous prior and current litigations over the past ten years involving Sandra Elsley detailing a history of fraud and misrepresentations. A quick search of the names listed in the S1 reveal related numerous litigations, including a transcript from a Nevada lawsuit naming Sandra Elsley as an interested party. A transcript of Sandra Elsley's deposition demonstrates her reluctantly admitting after first denying that at least one of the S1 investors is a mental health therapy client of Sandra Elsley's and that Sandra Elsley borrowed significant money from her. Sandra Elsley refused to disclose the amount she borrowed; however, she did state that she had not repaid the loan. This raises a serious concern of Algae Dynamics "nominee shareholders" whereby Directors and Officers of Algae Dynamics would benefit directly from an S1 investor selling into the market if the company became public. These monies could be disguised as loans to the insiders as they are in most OTCBB scams.We have since located court rulings against Sandra Elsley on Canlii Law wherein the judge presiding in ruling 2013 ONSC 1210, sanctions Sandra Elsley for numerous false statements and directly comments "she actually stated in her affidavit was misleading at best and untrue at worst." - just the kind of Communications VP any public company would want, right?In SPAM emails to new potential investors, Sandra Elsley claimed the Mr Ramsey and Mr Rusiniak were "smart business men who made $50,000,000 Million about ten years ago and retired" and she goes onto say they "Spent alot of money, got bored, and decided to find the next best product to market." Sandra Elsley failed to disclose to investors material information like the two men enjoyed high compensation, share sales to unsuspecting investors, while driving Cymat to a $13,000,000 loss, never achieving a profit, and little to no revenue in less than 5 years.Sandra Elsley was compensated generously for her services at significant damage to her vulnerable clients.Since our Expos, numerous potential investors sent us copies of boiler-room investment emails and attachments received from Sandra Elsley. FOUNDERS ATTEMPT TO PURGE DAMNING INFORMATION FROM THE INTERNETWell if you were hoping they would file accurate documents with the Ontario Securities Commission then you guessed wrong. Instead of providing investors with accurate information, their emphasis has been to purge Internet Search Engines of detailed proof of litigation, false statements, and accurate reports. The founders have hired experts to purge search engine results. They have contacted Googles legal department, filed DCMA copyright notices for replicated damning information, and hired experts to scrub documents and reports relating to Elsleys prior numerous scams, and to remove our expos despite irrefutable proof. The search engines have opted not to suppress the facts relating to the founders and Algae Dynamics.

OFFERING DOCUMENTS AND PRIOR FINANCING RAISES(click to enlarge)(Figure 1 - financials used in prior financing rounds in 2014)Fact Checking Highlights of Offering Materials vs. Financials in 2015 10KFalse ClaimOffering DocumentActual from latest 1KQ

Revenue 2014$5.5 million$0 nothing

Gross Profit 2014$3.6 million$0 nothing

Plant Equipment 2014$2.6 million$70,000

Net earnings YTD$2.5 million profitIn excess of $1.8 million lost

EBITDA (page 8 of document)$247 million value$0 profit x 15 = $0 value

Click below for offering documents distributed to potential unsuspecting investorsAlgae Dynamics Proforma Investor Slide Show distributed by Sandra Elsley claiming high profits and hundreds of millions in valueAlgae Dynamics Business Plan provided to potential investors by Sandra Elsley and Paul RamsayAlgae Dynamics Opportunity Overview to potential investors by Paul Ramsay and Sandra ElsleyAlgae Dynamics Offering Memorandum to potential investors by Sandra ElsleyAlgae Dynamics subscription agreement illegal capital raise in Ontario by Sandra Elsley

LIKELY RECISSION OF INVESTMENT BY ONTARIO INVESTORSThe Ontario Securities Commission overseas investment and market regulation much like the Securities and Exchange Commission in the United States does. Ontario's RIGHTS OF ACTION FOR DAMAGES OR RESCISSION mean shareholders who purchased shares in Ontario can demand a refund or file an action against the company and individual who sold them the shares illegally or by misrepresenting facts. Due to the statute of limitations, we expect the Ontario S1 investors will soon commence actions against Algae Dynamics and the Officer who handled their share purchase to recover their money. The Ontario Securities Commission can be very helpful in this regard.Boiler-room emails from IR blindly seeking fresh investors and press releases publicly seeking investors will likely draw the intervention of the Ontario Securities Commission.SECURITIES AND EXCHANGE COMMISSION STATUSAt this time, the SEC isnot permittingAlgae Dynamics to trade on any public stock exchange. Future litigation and likely rescission of investment by Ontario investors will pepper Algae Dynamic's filings for years to come.In the unlikely event the company does go public, the only shares registered for sale are the S1 investors - the company did NOT file a shelf registration to sell its own registered shares in the future. If Algae Dynamics trades, the only shares available on the market would be the S1 investors looking to exit as quickly as possible. It has not sought registration for any of its treasury shares for future financing.We view a bankruptcy as inevitable and would not be surprised if the SEC chooses to deny its registration as a public company. Algae Dynamic does not even deserve to trade on the Pink Sheets in our view.We are pleased the Securities and Exchange Commission is protecting US investors by not allowing Algae Dynamics to trade in public US Markets.Please watch for our next expos on another Canadian Biotech IPO attempting to go public in the United States, and in our opinion, exploit US investor money.Disclosure: I will short Algae Dynamics if it is ever allowed to trade on any market. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.Disclosure:The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.