Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ E-Waste Rejects Stock Price Days After $ 100 Million New Jersey Delicatessen Does the Same

E-Waste Rejects Stock Price Days After $ 100 Million New Jersey Delicatessen Does the Same



Hometown Deli, Paulsboro, NJ

Mike Calia | CNBC

Shell company E-Waste Corp on Monday rejected its own soaring stock market value of $ 106 million, three days after an identical move by the mysterious company, which owns only a single small New Jersey deli.

The deli company, Hometown International, has several connections to E-Waste, which has no actual business operations.

Both companies are traded at best in the over-the-counter market.

Back-to-back rejections of their respective market values ​​in Securities and Exchange Commission archives came after more than two weeks of articles from CNBC describing legal and regulatory issues surrounding people and entities associated with Hometown International and E-Waste.

They also come as a Hong Kong-based firm, Maso Capital, continues to try to position both companies as vehicles for the acquisition of privately owned companies in order to be listed on US stock markets.

In its submission to the SEC on Monday, the management of E-Waste said it “rejects the price of the listed stock on the OTC markets under the trading symbol ̵

6;EWST’.”

“Management is not aware of any basis for supporting the company’s share price, based on its revenue or assets,” the filing said in a language that reflected Hometown International’s filing last Friday.

Last week, both Hometown International and E-Waste on the same day killed consultation agreements with a North Carolina company controlled by the father of Hometown’s chairman.

The movements, citing “recent negative press”, were praised by Maso Capital founder, Manoj Jain, who said: “We look forward to both public companies making their stated takeover plans.”

E-Waste raised $ 2.5 million last month from several institutional investors in a range of private placements, according to Monday’s filing.

“Management revealed that the proceeds from this private placement would be used for working capital and general business purposes and to seek, investigate and, if such an investigation warrants, enter into a business combination with a private entity whose business represents an opportunity for the company’s shareholders, “said the archivist.

The filing was signed by E-Waste President John Rollo, whose company in November declared a net loss of nearly $ 58,000 over the previous nine months.

A Grammy Award-winning recording engineer, 66-year-old Rollo last year worked as a patient transporter at a hospital in New Jersey, according to another recent E-Waste economics.

E-Waste’s share price closed at $ 8.50 per share. Stock Monday without any trades registered on the pink market according to the OTC Markets Group.

With 12.5 million outstanding shares, E-Waste has a market value of $ 106.25 million.

Hometown International stock, which also trades on the pink market, closed at $ 13.40 per share. Stock where only 2,866 out of the nearly 7.8 million ordinary shares outstanding changed hands in trading.

This stock price gives the company a market capitalization of $ 97.85 million. That’s many times greater than just $ 35,000 in sales of its Hometown Deli in Paulsboro, New Jersey, in the last two years combined.

On April 21, the OTC Markets Group downgraded Hometown International to its pink market from the more prestigious OTCQB platform due to “irregularities” in its public announcements. The stock also had a “buyer’s pass” mark that was struck on it by OTC Markets, which at the time told CNBC that it was also investigating the financial filing of E-Waste.

It remains unclear why anyone – whether close to both companies or not – would have paid much for both shares in the past year, much less bid them up in value at their current valuation given their lack of any significant business.

Both companies in their public disclosures have directly stated that there is no guarantee that they will be able to survive in their current state.

E-waste was apparently set up to develop an e-waste recycling business in 2012, but it ceased this effort and has not declared any revenue for years.

A key figure associated with both companies is Peter Coker Sr., father of Hometown International President Peter Coker Jr. The older Coker is an investor in Hometown International.

Last year, after a Macao, China-based entity called Global Equity Limited bought 6 million limited shares in E-Waste, a controlling stake, E-Waste’s registration and telephone number were changed to Coker Sr.’s office in Carrboro, North Carolina. , and began paying $ 250 per. month for a one year lease there.

Global Equity is also the largest shareholder in Hometown International.

E-Waste also began paying Coker Sr.’s Tryon Capital $ 2,500 a year last year. Month according to a consulting agreement.

And Coker Sr. personally borrowed $ 255,000 from E-Waste at an annual interest rate of 8%, according to financial records. Tryon Capital also raised an additional $ 15,000 per share. Month from a consulting agreement with Hometown International.

These consulting deals were terminated last week after CNBC’s review of the events.

In late November, E-Waste issued a cash letter to Hometown International for $ 150,000 at an interest rate of at least 6% annually, according to an SEC filing. This note indicates that Hometown International lent the shell company that amount.

The money letter was recognized by Hometown International CEO Paul Morina, who is the principal of Paulsboro High School, whose famous wrestling team he also coaches.

Hometown Deli, Paulsboro, NJ

Mike Calia | CNBC


Source link