A company promoting Water3 vending machines to investors has gone bust

A Brisbane firm that enticed investors with a 12 per cent annual fixed return and a way to do their bit to end the environmental scourge of single-use plastic water bottles has been wound up.

DOWN THE DRAIN

They enticed investors with an attractive 12 per cent annual fixed return and a way to do their bit to end the environmental scourge of single-use plastic water bottles.

But it’s all gone down the drain now.

Brisbane-based Chatstone Pty Ltd managed the purchase and rental agreements for refillable water bottle kiosks across southeast Queensland.

Punters shelled out $25,000 for the vending machines, with the expectation of a $15,000 return in five years via monthly payments of $250 and a possible buyback from the firm.

Consumers could fill up with still, chilled or sparkling spring water for $1 to $2 and even snare a stainless steel bottle for $10.

Leicester Chatfield

But a creditor won orders in the Brisbane Supreme Court this week to wind up the company, which launched in 2012 and was overseen by sole director Leicester Chatfield.

Chatstone secured the kiosks from Water3 Pty Ltd, a still-intact entity on the Gold Coast with Chatfield as the only director. The machines were manufactured in Thailand and then filled up with water at an industrial site in Ormeau.

We had hoped to learn how it all came unstuck but couldn’t reach Chatfield, who lives in Hamilton and formerly worked as an operations manager at Lion Nathan. Sadly, the phone number for Water3 has been disconnected.

But we do know that signs of trouble have been bubbling to the surface for quite a while.

Late last year the company, which aimed to roll out up to 2500 of the machines and expand internationally, suffered a major setback when they were pulled from light rail stations on the Gold Coast.

Kiosks at Pacific Fair and Robina Town Centre were also unplugged.

At the same time, investors alleged they stopped getting paid as the company ceased buying back the machines.

“We were being paid monthly rental but since Covid we have received nothing. They say they are working on generating funds to pay out customers,’’ one punter claimed.

“Some of our funds have been converted to shares with the promise over a year ago that the company would go on the stock exchange and we would be able to sell our shares. Due to recommendations and the condition of the stock market they have not listed. Now they say they have a buyer for the company.’’

Company records show Chatfield remains the lone director of Chatstone Holdings Pty Ltd, which is owned by Vending Machines International in Singapore. VMI owns the intellectual property behind Water3.

He is also still the sole director of Chatstone Direct Pty Ltd, which is controlled by an entity in the British Virgin Islands.

RECORD DIAMOND BUY

A record $2.2m has just been paid for an extremely rare gemstone owned by a Brisbane retiree.

We learned this week that a Di Fitzpatrick’s 2 carat pink diamond with a purplish hue changed hands following a public tender campaign that closed earlier this month.

Di Fitzpatrick

The price for the brilliant rock, which was expected to sell for more than $1.5m, is double the previous record set only in April.

The diamond was the stand out rock owned by Fitzpatrick, who acquired a small collection of the gems starting in the 1980s.

They came from Rio Tinto’s now-closed Argyle mine in Western Australia.