Aquamamma founder allegedly told investors valuation would double

afr.com:

Robert Bates, the founder of the Aquamamma and Aurum+ wellness empire, allegedly told his wealthy investors that “no one has ever lost money investing with me” and he would buy back their shares if companies that were part of the now-collapsed group failed to reach revenue targets.

Despite repeated promises, however, those companies never provided any financial accounts as required, according to new documents filed with the Supreme Court in NSW by six aggrieved investors who are accusing Mr Bates and others involved in marketing the companies of fraud.

Aquamamma, Aurum+ and its predecessor companies Hi Relief and HR Health variously sold sachets containing electrolytes and vitamins for pregnant women and products to help ease stress and anxiety. The six investors are suing Mr Bates, Ms Gibson and those companies.

Robert Bates and Emma Gibson in 2020. Paul Harris

Mr Bates and his partner Emma Gibson, Aquamamma’s chief executive until last year, had a fortune of $145 million, according to the Financial Review Young Rich List in 2020. Ms Gibson described her company as “a billion-dollar business all day long”, with a revenue target of over $120 million. Mr Bates spoke about playing polo in Argentina with friends of King Charles.

But, the new filings allege, both Mr Bates and Ms Gibson were making baseless claims about the companies’ financial successes. In one 2021 investor presentation, previously revealed by The Australian Financial Review, Mr Bates claimed Aurum+ had a valuation of $US50 million ($77 million) which was expected to increase to $US180 million later that month.

Investors, including Daniel Brechner, Mr Bates’ limousine driver, allege they were told in June last year that Aquamamma would be sold “in 6 months”