It is a tale of intrigue involving millions in lost shareholder value, radical new technologies and a failed joint venture with alleged links to a member of the Hells Angels.

Key points: LWP's shares are almost worthless

LWP's shares are almost worthless Investors are calling for ASIC to investigate

Investors are calling for ASIC to investigate LWP's market capitalisation has dropped from $40 million in mid-2015 to $6 million today

Disgruntled shareholders have accused Brisbane-based firm LWP Technologies of destroying millions in shareholder value without producing any income.

LWP persuaded investors that its fly ash-based proppant — tiny balls used to keep fissures open when fracking — was a game-changer for the industry.

But now the company's shares are almost worthless and investors are calling for the Australian Securities and Investments Commission (ASIC) to investigate.

'It seemed like a no-brainer'

Perth-based Brad Chapman has worked in drill and blast mining for 20 years. He spent $650,000 on LWP shares, making him one of the ASX-listed firm's biggest investors.

"Fly ash was an abundant resource, cheap, and the technology these guys said they had to be able to turn this into proppants made it much better than what was on the market for the price you could get it at," he recalled.

"It seemed like a no-brainer — it looked very impressive.

"I've come to the conclusion they've not actually produced anything.

"If everything they predicted came true it should have been a real goer."

He sold his shares last year, making a $240,000 loss.

LWP's market capitalisation has dropped from $40 million in mid-2015 to just $6 million today.

The company's shares are almost worthless, fetching just 0.1 cents, down from highs of 30 cents a share in 2009.

ASX confirms complaints from shareholders

The company's chairman, Siegfried Konig, told the ABC he was the second-largest LWP shareholder and had seen the value of his shares drop from $3.8 million to $350,000.

"Therefore, my holding and that of the other directors is 100 per cent aligned with LWP shareholders, and the board is making every effort to restore that value," he said.

The ASX told the ABC it had received many complaints from investors.

"LWP is a company whose issues have exercised a lot of ASX's attention. We have made multiple enquiries and taken a range of actions within the scope of our power," it said in a statement.

The ASX is also concerned about the management of the company, having recently required LWP to appoint independent directors and an independent governance expert.

Company has no obvious source of income

Tony from Brisbane spent $30,000 on shares in 2015, but sold out last year when he became increasingly concerned about a lack of progress and some of the company's investments.

"I was looking for a long-term hold, it had pretty promising technologies, but management — there were too many red flags for me," he said.

LWP has no obvious source of income as it is yet to go into production or sell any product. It has not turned a profit since 2013, when it got a tax rebate, and posted a $7.6 million loss for the half-year to December 2016.

"They've alluded they've had contracts coming up in the works, but nothing has materialised over the last two years," Mr Chapman said.

The company appears to have survived by raising funds through issuing new shares, including $6.6 million in 2015, and a further $6 million from Lanstead Capital in 2016.

Mr Konig said the proppant product is ready for commercialisation, but the drop in the oil price has led oil and gas companies to cut back on capital expenditure.

But now, according to company accounts, the company has just $1.1 million in the bank, and the ASX has estimated LWP has cash outflows of $880,000 for the next quarter alone.

The dismal figures did not affect Mr Konig's wages — he was paid $430,000 last financial year.

"I think they're just milking it out now and they'll just close shop when that money's gone," Mr Chapman said.

With no income, the ASX was concerned the company would fold, so it sent a "please explain" letter in mid-May.

Mr Konig responded to the ASX with a statement saying the company was taking steps to achieve positive cash flow, including halving the pay of senior executives.

Failed venture lands in court

Investors have accused management of making a raft of mistakes, including a failed joint venture with rechargeable battery technology company GraphenEra, which has ended in court.

LWP spent $1.6 million and handed out 30 million shares to acquire 50 per cent of the battery patent.

The scientist behind the invention, GraphenEra director Victor Volkov, planned to set up a laboratory in Thailand to produce the graphene battery, which he claimed would compete with lithium batteries.

LWP is now suing GraphenEra, alleging Mr Volkov mismanaged funds, and is seeking to cancel the joint venture and recover $770,000 and 30 million shares.

Supreme Court documents show LWP sent a representative to Thailand, Bruce Dwyer, who said the laboratory, rented by Mr Volkov, "was in fact at that stage an empty shed, factory that had been rented".

Investors say this photo, leaked to an investor chat site, shows the Thai laboratory. They say they want to see more photos of the lab's progress. ( Supplied )

Mr Chapman said he believed LWP did not have sufficient controls over the running of the joint venture.

"My thinking on it is that the directors were absolutely incompetent to go ahead with it," he said.

But Mr Konig disputed that assessment, saying an independent third party introduced the board to the project, which had the potential to make LWP a very valuable enterprise and that he "personally saw the lab construction in progress".

Joint venture company has alleged links to bikie gang member

Last year Mr Volkov submitted a patent, naming a close relative as an inventor, to the patent office.

Police allege this family member is a patched member of the Hell's Angels.

LWP met with Mr Volkov and his relative as part of its due diligence.

"The principal scientist assured the board that his relative had absolutely nothing to do with GraphenEra," Mr Konig said.

A number of former LWP shareholders have made complaints to the Queensland Police, ASIC and the ASX, and are now considering a class action.

"These guys are downright greedy," Tony from Brisbane said.

"ASIC's done nothing and you complain to them and it's a black hole. Information comes in and nothing goes out."

ASIC declined to comment.

Investors criticise a range of LWP's decisions

Investors have criticised a number of LWP's decisions, including LWP investing $500,000 in a retail chain run by its former CEO Sean Corbin, who resigned from LWP in November 2016.

Mr Konig was also previously listed as a director of this retail company.

While Mr Konig said the company did nothing wrong, the ASX forced LWP to undo the deal.

The ASX also forced Mr Konig and Mr Corbin to sell shares issued to their children, with profits to be donated to a charity.

LWP executives were forced to sell 41 million shares acquired when LWP bought Mr Konig's private company Ecopropp.

Mr Konig conceded "some of our previous company secretarial matters could have been handled better".

The company was also caught out claiming it had independently tested its proppants, but in March was forced to write a retraction, blaming its investor relations team.

The testing had been done by LWP's former chief scientist.

"The accusation that testing was not independent is entirely false and without foundation," Mr Konig said.

Investors have also criticised LWP for making a $300,000 loan to a traffic signalling company Omnet, which went bust soon afterwards.