The Cortellazzi Consortium

October 29, 2007

The Water Boys

Today’s blog item will focus on the Cortellazzi bottled water ventures and their figureheads, Horace A. Sirois and Allain Barriere, the Water Boys.

The Cortellazzi Consortium’s current bottled water venture Canadian Blue Gold actually has it’s origins well before the first Coastal Holdings bottled water press release in 2007.

Troubled Waters

The story actually begins in 2002 when Parmalat, the Italian dairy company, opened its first bottled water business in Canada under the Eaux Vives Harricana (EVH) in the small community of St-Mathieu-de-l’Harricana which is located about 10 km from Amos in Northern Quebec.

The bottled water was being marketed under the “ESKER “brand name in order to tie into the product’s source.

The business started off badly almost immediately as Parmalat became embroiled in a legal battle with Agrinove, it was all downhill after that with the bottling plant closing it’s doors in 2004.

The bottled water business is highly competitive and Parmalat found out just how competitive it could be after having sunk over 107 million over 3 years in the plant and still owed over 100 million after it closed the doors on the state of the art plant.

Things appeared to brighten for the plant’s survival when in September 2005, a Quebec Court Judge accepted the sale of the plant to a subsidiary of Morgan Stanley for 18 million, a fraction of what Parmalat had invested.

However, this wasn’t easy as the legal restructuring by Eaux Vives Water Inc., (owned by Morgan Stanley Principal Investments, Morgan Stanley’s wholly owned principal investing division) continued well into 2006.

In September 2005, during the restructuring period a very large bottled water contract with China by Eaux Vives Water Bottling (the Morgan Stanley subsidiary) had been touted in the Quebec media during one of the Canadian trade missions with Premier of Quebec, Jean Charest.

Representing Eaux vives Water Bottling on this trade mission was Mr. Horace Alain Sirois (who until recently was a CEO of Mr. Cortellazzi’s Coastal Holdings) :

“Rejoint à Shanghai, le président du Bureau mondial du développement des affaires, Horace Sirois, s’est réjoui de cette entente: « Les Chinois cherchaient une eau de qualité et ils veulent en faire un produit de distinction », dit-il.

L’accord commercial survient au moment même où un nouveau promoteur, Eaux vives Bottling Water, se prépare à relancer l’usine exploitée par le géant italien Parmalat, avant la déconfiture de ce dernier en bourse.”

Les revenus découlant de cette entente pourraient rapidement dépasser les 200 millions de dollars.”

In October 2005, the highly touted Chinese mega deal of 10 million cases of bottled water inked a month previously had been reduced to a very modest 600,000 cases:

“Ce contrat, annoncé à l’occasion de la récente mission économique du premier ministre Jean Charest en Chine, est toutefois beaucoup plus modeste que ce qui a été annoncé, a précisé Ghislain Gauthier. Il porte sur 600 000 caisses par année plutôt que sur 10 millions de caisses.

By January 2006, the Chinese had decided not to honour the contract order.

In 2007, the well known Quebec business magazine, Les Affaires viewed the sale as a complete failure:

Il s’agit d’une modeste reprise de l’activité d’embouteillage dont la production est avant tout destinée au marché régional puisque de prometteuses commandes chinoises ne se sont pas encore concrétisées.

À l’automne 2005, un accord portant sur l’exportation de 10 millions de caisses de 24 bouteilles d’eau québécoise, d’une valeur de 60 M$, avait constitué le haut fait de la mission commerciale en Chine dirigée par le premier ministre, Jean Charest, et suscité l’espoir d’une reprise rapide à l’usine abitibienne.

The Water Boys

The first Water Boy is Mr Horace Alain Sirois.

Mr. Sirois is the CEO of WORLD BUSINESS DEVELOPMENT BUREAU (BMDA) INC. which was incorporated by Federal charter in Canada on 16 February 2004.

Just after the highly touted and failed Chinese “Esker” water deal in 2006, things began to go badly for Mr. Horace A. Sirois.

In January 2007, the Caisse Populaire Desjardins de Joliette (for those unfamiliar with Quebec, the Caisse Populaire is a financial institution akin to a Credit Union) undertook a lawsuit against Mr. Sirois and his company World Business Development Bureau for $32,106.28 (Quebec court docket: 705-22-008212-076) which Mr. Sirois lost by default in May 2007 (a execution writ was later issued on 15 August 2007).

This wasn’t the first time Mr. Sirois had been sued by a bank. In June 2000, another Caisse Populaire (Caisse Populaire Desjardins de la Haute Matawanie, Quebec Court docket: 705-22-003161-005) sued Mr. Sirois and obtained a judgment by default for $26,695.00 in January 2001.

In February 2007, soon after the lawsuit was initiated by the Caisse Populaire Desjardins de Joliette, Coastal Holdings announced it was in the process of a reverse merger with a water distributing company called Aqua Gold International, Inc.

Aqua Gold International’s water supply was located in Mohawk Nation Territory of Akwesasne and it was targeting the Asia-Pacific bottled water market. The press release stated their product was “distributed to superstores such as Wal-Mart, grocery stores, convenience stores and gas stations.” under the “Canadian Indian” brand.

In April 2007, it was announced by Coastal Holdings that the existing Aqua Gold President had been replaced with Mr. Horace A. Sirois, President and CEO of the World Business Development Bureau (WBDB). The press release went on to tout Mr. Sirois in glowing terms adding that he had been hired by Aqua Gold for a 5 year period:

“Aqua Gold has offered Mr. Sirois a 5 year contract and, upon signature of the contract, Mr. Sirois will replace Mr. Da Silva who has served as President since the inception of the Company.”

The same press release went on to glorify the failed September 2005 Chinese mega water deal as a success story:

“Mr. Horace A. Sirois is currently President and CEO of the World Business Development Bureau (WBDB – http://www.wbdb.biz). He is also an active member of the Canada China Network Council (CCNC), and has successfully executed several trading contracts and land development projects in China. In particular the honourable Prime Minister of Quebec Jean Charest, during his economic mission in China, was proud to announce the largest contract in bottled water industry ever made between Canada and China; which was executed by WBDB. Mr Sirois is a highly experienced public servant who has held various senior executive positions in both the public and private sectors. “

As the boldness of the Cortellezzi Consortium knows no bounds, more “mega deals” were announced.

Barely 5 days later, Coastal Holdings released another announcement stating it had completed a two-year distribution contract via the delivery of 5 million cases of its premium bottled water in the Asia-Pacific region.”

Mere days after that, an even larger contract announced: “has signed a one-year distribution contract for the delivery of 15 million cases of its premium bottled water in Beijing, China.”

The month of April had yet to conclude when on 26 April 2007, Coastal Holdings announced a new slate of directors which intimated that Mr. Cortellazzi and Mr. Sirois who had recently signed a 5 year contract with Aqua Gold had resigned (or been ousted) from the Coastal Holdings board : “New Management would like to take this opportunity to thank Coastal Holdings’ previous management for providing Aqua Gold with the opportunity to become publicly trading and wishes them success in their future Endeavour’s.”

However, the Cortellazzi Consortium had another plan in mind. Days after the announcement, Mr. Sirois filed a corporate name reservation (3 May 2007) in Nevada for “Aqua Gold International Inc.”

With the knowledge that Aqua Gold had been moving forward on the contracts, the Cortellazzi Consortium moved in on 11 May 2007 by cancelling the merger and claiming in a press release that Aqua Gold had misrepresented the Asian contracts, going so far as to intimate a law suit was imminent.

The announcement went on state that Mr. Horace A. Sirois had been to restored as CEO of Coastal Holdings and of course the press release reiterated the failed September 2005 Chinese mega deal in glowing terms.

Interestingly, it is on this occasion which Water Boy number 2, Mr. Allain Barriere the current CEO of Canadian Blue Gold appears in his first press release:

“Coastal Holdings, Inc. Announces Cancellation of Reverse Merger with Aqua Gold
Cancellation due to Aqua Gold’s Breach and Misrepresentation of China Water Distribution Contract

HOUSTON, TX, May 11 /PRNewswire-FirstCall/ – Coastal Holdings, Inc. (PINKSHEETS: COHG – News) today announced, pursuant to the approval of a majority of its shareholders, the cancellation of the reverse merger agreement with Aqua Gold. This decision was based on critical information received from WBDB Inc. with respect to the true ownership of the water distribution contract recently disclosed by Aqua Gold. This information exposed a breach and misrepresentation of contract on the part of Aqua Gold International, Inc. Due to the significant negative impact of this misrepresentation, which could be construed as defamation of character, Coastal Holdings’ management is seriously considering taking legal recourse against these actions of Aqua Gold and its principals.

Furthermore as a result of this cancellation and according to majority shareholder consensus, Coastal Holdings has decided to not retain the following three previously announced Board members: (1) Mr. Gerald Enloe, Chairman of the Board; (2) Mr. Paul A. Taillefer, Chief Operating Officer; and (3) Mr. Daniel Sauve, Chief Financial Officer. Effective immediately, Mr. Horace Sirois has been appointed as Chief Executive Officer and Chairman of the Board of Coastal Holdings, Inc.

Pursuant to these extraordinary events, Coastal Holdings in conjunction with Mr. Horace Sirois has agreed to sign a direct licensing agreement concerning WBDB Inc.’s water distribution contracts in China. Further details will be disclosed in short order upon the signing of the agreement. The Company will take all the necessary steps to support the development of Mr. Sirois’ long-term and well-established relationship with China-based companies.

Finally, Coastal Holdings announced that it will take immediate action to terminate the dumping of shares by Aqua Gold’s principals in order to protect the interests of its shareholders.

Mr. Horace A. Sirois is currently President and CEO of the World Business Development Bureau (WBDB – http://www.wbdb.biz). He is also an active member of the Canada China Network Council (CCNC), and has successfully executed several trading contracts and land development projects in China. In particular the honorable Prime Minister of Quebec Jean Charest, during his economic mission in China, was proud to announce the largest contract in bottled water industry ever made between Canada and China; which was executed by WBDB. Mr. Sirois is a highly experienced public servant who has held various senior executive positions in both the public and private sectors.

For more information on Coastal Holdings, Inc. please contact Mr. Alain Barriere at (514) 977-1271.”

Aqua Gold International was taken completely by surprise and resorted to enunciating their position on a message board. The same day, Aqua Gold International Inc. through it’s co-founder and executive vice-president Marc-Olivier Hassoun intimated on the Investors Hub Coastal Holdings message board that Aqua Gold would initiate legal proceedings as well:

“Aqua Gold International Inc. confirms contractual validity with WBDB and legal action against Horace Sirois president and CEO of WBDB.

Legal action will be taken against WBDB for breach and Misrepresentation of China Water Distribution Contract to Coastal Holdings Inc.

May 11, 2007 / In response to Coastal Holdings Inc. press release of today, Aqua Gold International Inc. announces that it will be taking legal action against the WBDB for its misrepresentation of contractual facts. Aqua Gold International will take all necessary legal action to enforce the validity of its subsidiary company’s contractual agreement with WBDB. Aqua Gold International’s subsidiary company has exclusive distribution rights for the fulfillment of WBDB’s contract for 65 millions cases of water and has ownership of 50% of all profits from the fulfilment of this contract. Any alleged agreements pertaining to this specific contract of 65 millions cases water are without legal effect.

Aqua gold International Inc. “

Neither party went to court, neither party expanded on the dispute and the 11 May 2007 post by Aqua Gold International Inc. was the first and only post it ever made.

Enter Canadian Blue Gold

On 21 May 2007, the wheels were set in motion for Mr. Barriere to enter the stage.

bluegoldmanagmt1.jpg

A domain name was registered for Norwa water (a website has yet to appear), Mr. Barriere then reserved the corporate name CANADIAN BLUE GOLD INC. in the State of Nevada on 22 May 2007, mere days after the merger cancellation announcement. The same day a press release was issued installing Mr.Barriere as CFO of Coastal Holdings.

According to the same press release, Mr. Cortellazzi had relinquished his majority shareholder position in Coastal Holdings to “Norwa Water” a Canadian Corporation which according to the press release Allain Barriere (a former Ouranos Resources alumni) is president :

May 22, 2007 – 12:29 PM EDT

Coastal Holdings, Inc. Announces Sale of Control Position to Norwa Water and Appointment of Mr. Allain Barriere as Chief Financial Officer – Company Intends to File Name Change Documents this Week

HOUSTON, TX, May 22 /PRNewswire-FirstCall/ – Coastal Holdings, Inc. (PINKSHEETS: COHG – News) today announced the sale of the control block owned by Andrea Cortellazzi et al. to Norwa Water, a Canadian Corporation specialized in water distribution and bottling; and the appointment of Mr. Allain Barriere as Chief Financial Officer.

Mr. Horace A. Sirois, Coastal Holdings’ recently appointed CEO and acting President and CEO of the ‘World Business Development Bureau’ (WBDB – http://www.wbdb.biz), stated the following: ‘Mr. Barriere and I have been working diligently for the past week, with the involved parties and partners, to reorganize the Company and unify the group under one main banner, in order to achieve our goal to become one of the best-selling brands of bottled water in the Asia-Pacific region.’

Mr. Allain Barriere, President of Norwa Water, indicated the following: ‘I consider my group privileged to have the opportunity to become a partner in Mr. Sirois’ projects in China. Our immediate goal is to structure the Company to allow WBDB, The Chinese Partners and the Water manufacturer to all become partners in the new Venture and to sign partnership agreements to this effect.’

The Company is also pleased to announce that it will file the necessary documents this week in order to file for name change, new CUSIP number and trading symbol.”

Notwithstanding, the assertion in the press release Mr. Cortellazzi did retain a significant amount of shares in Coastal Holdings as this 8 August 2007, SEC filing for M45 Mining reflects (see graphic below).

sec_filing_ac_ownership.jpg

Interestingly, after Mr. Barriere reserved the corporate name on 22 May 2007 as CANADIAN BLUE GOLD INC., two days before the name reservation expired, Coastal Holdings re-emerged on 23 Aug 2007 as CANADIAN BLUE GOLD, INC. , the comma after the word “Gold” summons curiosity because in a 5 September 2007 press release the comma is absent:

HOUSTON, TX–(Marketwire – September 5, 2007) – Coastal Holdings, Inc. (PINKSHEETS: COHG) today announced that it has officially changed its corporate name in the State of Nevada to “Canadian Blue Gold Inc.”

Both Nevada registrations list Mr. Barriere’s home address, 6 rue de St-Ours, St-Jean sur Richelieu from which his wife (also listed as a former Ouranos Resources shareholder) runs a food supplements business.

Prior to his elevation to CFO of Coastal Holdings, Mr. Barriere’s attention was focused on other things in the form of a lawsuit undertaken against him for hidden defects which had begun in January 2007 (Quebec Court docket: 755-32-005936-077). The lawsuit cites Mr. Barriere’s home address (6 rue de St-Ours, St-Jean sur Richelieu) and was settled out of court on 3 May 2007 for $7,000.00 after the plaintiffs refused to mediate.

This type of complaint would not be unusual for Mr. Barriere since he has more than one occupation, he’s a used car salesman as you can see for yourself from a recent online listing (which appears in the graphic below) he was offering a 2001 Audi in August 2007.

carsale_barriere.jpg


Car sales must have been slumping in early 2007 , because Mr. Barriere appears to have been short on cash in January having posted his heating pump for sale online during a very cold Canadian winter.

The cycle of outlandish mega deal press releases began in earnest in May 2007 with Mr. Barriere stating he was travelling to Algeria to promote the distribution of Coastal Holdings, Inc. of “Canadian Indian Spring Water” :

“Mr. Barriere stated: “I am honored to be part of this mission under Coastal’s new banner ‘CANADIAN BLUE GOLD Inc.‘ and to enter this niche market with such a great product as Canadian Indian Spring Water. With the full collaboration and support of WBDB’ s staff and assistance of Canadian Indian’s team,”Not the “Norwa Water” brand which Mr. Barriere mentions in the Coastal Holdings press release of 22 May 2007 , but “Canadian Indian Bottled Water” which bears a striking resemblance to the brand name which was previously stated February 2007 Coastal Holding press releases as Aqua Gold’s brand.

Days later, on 31 May 2007 Coastal Holdings was announcing the first of 2 mega deals by Mr. Horace Sirois:

“CEO Mr. Horace Sirois Completes First Part of Commercial Mission with Signing of Landmark 5-year Contract in Shanghai

HOUSTON, TX, May 31 /PRNewswire-FirstCall/ – Coastal Holdings, Inc. (PINKSHEETS: COHG – News) today announced that CEO Mr. Horace Sirois has signed a 5-year distribution contract with a Shanghai, China-based distributor to sell 65 million cases, composed of 24 500mL bottles per case, of “Canadian Indian Spring Water”.

The second Coastal Holdings announcement on 18 June 2007 appears remarkably similar to the first is for another mega deal with China deal by Mr. Sirois for 65 Million cases

Both are significantly reminiscent of Mr. Sirois’ 2005 Eaux Vives Water Inc deal which never came to fruition, both press releases mention the product brand “Canadian Indian Spring Water.” and the terms of both contracts are nearly identical :

“CEO Mr. Horace Sirois has signed a 5-year distribution contract with a Shanghai, China-based distributor to sell 65 million cases, composed of 24 500mL bottles per case, of “Canadian Indian Spring Water”.

“The 5-year distribution contract was signed with a Beijing, China-based distributor to sell 65 million cases, composed of 24 500mL bottles per case, of “Canadian Indian Spring Water.” The total value of the agreement represents recurring revenues of more than $400 million over a 5-year period. “

The first deal was reported by the Chinese media in the vaguest of terms:

“BEIJING (XFN-ASIA) – Coastal Holdings Inc said it has signed a five-year 400 mln usd deal with a Shanghai-based distributor to sell 65 mln cases of Canadian Indian Spring Water in China.

The Chinese distributor was not named in the company statement.

Houston-based Coastal Holdings also announced it has applied to change its company name to Canadian Blue Gold Inc.

No additional details were provided.”

A consistent point which flows through the 31 May and 18 June 2007, Coastal Holdings press releases in which Mr. Sirois is a central figure and the Aqua Gold 11 May 2007 message board posting which claims belonged to its unnamed subsidiary, is the same quantity of water which is 65 million cases of water.

“Aqua Gold International’s subsidiary company has exclusive distribution rights for the fulfillment of WBDB’s contract for 65 millions cases of water and has ownership of 50% of all profits from the fulfilment of this contract. Any alleged agreements pertaining to this specific contract of 65 millions cases water are without legal effect.

On 18 June 2007, Coastal Holdings announced rather confusing press release stating the delivery process of the first order of 65 million cases,destined for Shanghai had begun for 1,000,000 cases of “Canadian Indian bottled water” but in Beijing, China.

The press release indicates it wasn’t quite a done deal:

“CEO Mr. Horace Sirois has finalized all the labeling design and printing matrix, which constituted one of the last conditions required to be met in order to secure the approval of the Chinese distributor. Pursuant to this approval, the Company will ship 1 container totaling 2,000 cases of bottled water for duties and customs settings and permits.”

The 18 June 2007 press release is the last press release which mentions Mr. Horace Sirois and his company, World Business Development Bureau.

Days before, Caisse Populaire Desjardins de Joliette had obtained judgment for $32,106.28 (Quebec Court docket: 705-22-008212-076) against Mr. Horace Sirois and his company, World Business Development Bureau for which an execution order was later issued against both Mr. Horace Sirois and his company on 15 August 2007.

It’s rather revealing that someone who purportedly had just signed not one, but 2 multi million dollar mega deals in China was unable to secure the confidence of his financial institution for a comparatively modest sum.

The next press release on 28 June 2007 omitted Mr. Sirois all together. On this occasion the “Norwa” brand water is mentioned:

” The Company will shortly launch its new Brand name design ‘Norwa’; the Corporate Web site is in the final stages. Upon approval of name and symbol changes by regulating authorities, investment groups’ outlook is very positive. This will allow ‘Canadian Blue Gold Inc.’ to significantly expand its working capital.

“Furthermore management understands fully that the road to success in today’s market is in acquisitions of numerous water plants and distribution companies in Quebec in order to construct a high quality asset. Today’s market movers are based on takeovers which is exactly what Canadian Blue Gold has in its mind.”

A rather clever idea, since Eaux Vives Water Inc., the company who Mr. Sirois had represented in the failed 2005 Chinese mega deal had started a media campaign blitz in Quebec for it’s brand “ESKA”.

On 20 August 2007, days after the judgment execution writ (Quebec Court docket: 705-22-008212-076) had been issued against against Mr. Horace Sirois and his company, Coastal Holdings announced the nomination of Mr. Allain Barriere as Chief Executive Officer and appointment of new members to board of directors, one them being a lawyer.

A few days later, it was announced that a “branch” office would be opened in Orlando, Florida.

It should have come as no surprise to most Cortellazzi Consortium watchers when on 17 september 2007, it was revealed that a familiar member of previous De Montigny ventures, Michele Minville of Florida was appointed.

The blog will discuss these appointments at a later time.

One of the more telling statements of the 17 September 2007 press release was the correction:

“Correction: On August 20, 2007 the Company announced the appointment of Mr. Luc Bellemare, attorney, as Chairman of the Board. The announcement was not approved by Mr. Bellemare who declined the offer. Management would like to apologize for this error and ensure that this unfortunate misinterpretation is corrected.”

On 24 September 2007, a press release heralds the “new” bottle water brand and it’s origin:

Canadian Blue Gold Inc. Launches New Brand of Bottled Water “NORWA”

HOUSTON, TX–(Marketwire – September 24, 2007) – Canadian Blue Gold Inc. (PINKSHEETS: COHG) today announced the official launching of its new Brand of Bottled Water called “NORWA.” For further information, we invite our shareholders to visit the recently launched corporate website at: www.canadianbluegold.com.

CEO Mr. Allain Barriere stated the following: “We are very proud to release the first brand in our family of water products: ‘NORWA.’ Pure fresh spring water, sourced from Northern Quebec, Canada. The water qualifies among the best in the world for its taste and quality specifications. The current format is 500 mL and we are negotiating a packaging agreement with a manufacturer of recyclable products to provide our clientele with the best product on the market that is also environmentally friendly.”

Remarkably, it appears that” Norwa” is from the same area of Quebec as “Eska” well known to the previous CEO Horace A. Sirois since the highly touted China mega trade deal of 2005.

On Oct 18, 2007 , the Coastal Holdings (COHG) symbol had ceased and Canadian Blue Gold Inc. commenced trading under the new stock ticker symbol CBGC.

The location which Canadian Blue Gold Inc. currently lists on its website (see graphic below) as its corporate HQ in Quebec is 823B St-Jacques Street, St-Jean Sur Richelieu, Quebec.

bluegold-locations.jpg

Canadian Blue Gold Inc. which purports to have signed 2 mega deals for over 130 million cases of bottled water to China has its corporate headquarters located next door to a small neighborhood barber shop (Coiffure Au Masculin, 823 St-Jacques, Saint-Jean-sur-Richelieu– graphic below) in a small Quebec town .

823-st-jacques.jpg

Water Exports

The rosy picture on water exports which paints Canadian Blue Gold and others for that matter doesn’t reflect reality. The beverage industry, in particular the bottled water trade in Canada is a highly competitive and regulated industry as Parmalat discovered to their chagrin.

Moreover, the current prevailing attitudes in Canada concerning water resources as a whole have changed over time, in particular after the contamination crisis which occurred in Walkerton, Ontario in May 2000.

Shortly after the Walkerton crisis, a shift of attitude towards water resources by the Canadian government. In 2001 the Canadian government indicated it would not support bulk water exports.

In 2004 concerns about Canada’s water resources began to receive even more media coverage. Some of the long standing water resource concerns between the United States and Canada were addressed in a international treaty in 2005.

Concerns are began to raise once again in Canada about water resources, this 12 October 2007 media coverage reports the shock and concerns by Lake Superior residents in regards to the rapid loss of water in the largest fresh water lake which straddles the Canadian US border.

Just a few days ago, the Canadian media reported the results of a newly created Canadian think tank:

“Abundance of freshwater ‘a myth’ – Threats to drinking supplies are real and many, new group says in report to be released today.”

In conclusion, the blog wishes to remind everyone of the wise old chinese proverb which appears on the”Eska” website.

“When you drink the water, remember the source”

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