Shell Sum­mary for Oct. 12, 2018

Stockwatch Daily - - SHELLS - By Stock­watch Busi­ness Re­porter

THE TSX Ven­ture Ex­change closed up 7.14 points to 698.60 Fri­day, but it ended the week down 7.09 points. Ivan Spec­tor has listed his first cap­i­tal pool shell, Me­te­orite Cap­i­tal Inc. (MTR: $0.15), with a $750,000 ini­tial pub­lic of­fer­ing at 15 cents. Its IPO agent was Leede Jones Gable Inc. The stock be­gan trad­ing to­day, reach­ing an in­tra­day high of 25 cents be­fore clos­ing at 15 cents on 8,400 shares.

Mr. Spec­tor, 61, is the pres­i­dent of Sen­tinel Alarm Co., a se­cu­rity and sur­veil­lance com­pany in Mon­treal. He founded Sen­tinel in 1981. Me­te­orite Cap­i­tal is his first pub­lic com­pany di­rec­tor­ship. Join­ing him on the shell’s board are three more direc­tors: his brother Charles Spec­tor, Mitchell Green­spoon and Rich ard Yanof­sky. Charles, 60, is a part­ner at Den­tons Canada LLP in Mon­treal. In the 2000s, he was a di­rec­tor of Mitec Tele­com Inc. and an ex­change-traded fund called Mon­tr­usco Bolton In­come and Growth Fund. The next shell di­rec­tor, Mr. Green­spoon, is the pres­i­dent of GI Sportz Inc., a Mon­treal com­pany that man­u­fac­tures paint­balls and paint­ball-re­lated prod­ucts (such as gog­gles, el­bow and knee pads, and har­nesses). Be­fore join­ing GI Sportz in 2011, he worked at the Mac­quarie Group for 13 years in po­si­tions in­clud­ing head of Que­bec in­vest­ment bank­ing. The fi­nal shell di­rec­tor, Mr. Yanof­sky, is the chief ex­ec­u­tive of­fi­cer of toy­maker WowWee Canada Inc. He co-founded the WowWee Group with his brother in the 1980s. The group is now based in Hong Kong. Among its most pop­u­lar toys are lit­tle robot an­i­mals called Finger­lings. Me­te­orite Cap­i­tal has not said what type of qual­i­fy­ing trans­ac­tion it plans to seek. Stephen Shef­sky has filed a fi­nal prospec­tus to list his first cap­i­tal pool shell, BB1 Ac­qui­si­tion Corp., with a $500,000 IPO at 10 cents. Its IPO agent is Canac­cord Ge­nu­ity Corp. Mr. Shef­sky, 63, is a re­source penny stock pro­moter with noth­ing spec­tac­u­larly good or spec­tac­u­larly bad in his pro­mo­tional record. He is the pres­i­dent and CEO of James Bay Re­sources Ltd. (JBR: $0.255), which does not have a prop­erty at the mo­ment but has plenty of cash. He listed James Bay in 2008 with a $9.3-mil­lion IPO at $1.25. James Bay’s IPO share­hold­ers have never had an op­por­tu­nity, to this day, to get out of their in­vest­ment with a profit. In 2011 the com­pany shifted from Cana­dian min­ing to Nige­rian oil and gas, but then in 2015 it lost its oil and gas as­set to the Nige­rian govern­ment. It took one of its part­ners to court in Eng­land, claimed $20.5-mil­lion (U.S.) and ended up set­tling for $10.5-mil­lion (U.S.) plus in­ter­est and le­gal costs. Af­ter re­ceiv­ing the money and pay­ing off its debts, James Bay’s work­ing cap­i­tal on June 30, 2018, was $8.4-mil­lion. It has not yet said what it plans to do now. Mr. Shef­sky has had other pro­mo­tions, in­clud­ing Cas­tle Re­sources Inc., which peaked at a modest 95 cents, and Ver­ena Min­er­als Corp., which traded up to $3.10 in its first two months but had falen to about 20 cents a year later. These days, Mr. Shef­sky runs a pri­vate Brazil­ian oil and gas com­pany, Bra­soil do Brasil Ex­plo­racao Petro­lif­era SA. At his cap­i­tal pool shell, he holds 1.6 mil­lion es­crow shares. BB1 Ac­qui­si­tion sold its 10 mil­lion es­crow shares at five cents in July.

Mr. Shef­sky has four fel­low direc­tors at BB1: Mark Bren­nan, Dr. Sam Pillers­dorf, Eric Szus­tak and Wayne Egan. Mr. Bren­nan, 55, holds 1.5 mil­lion es­crow shares. He co-founded Bra­soil do Brasil with Mr. Shef­sky and is a di­rec­tor of James Bay. He is a rea­son­ably ef­fec­tive re­source pro­moter, in­clud­ing CEO of Ad­mi­ral Bay Re­sources Inc., which traded up to $2.30. From 2005 to 2015, he was the CEO of Largo Re­sources Ltd. (LGO: $3.52), which un­der his watch peaked at $1.58. (This $1.58 price does not take into ac­count a 1-for-10 roll­back com­pleted un­der Mr. Bren­nan.) More re­cently, from April, 2015, to

April, 2018, Mr. Bren­nan was the CEO of Sierra Met­als Inc. (SMT: $3.26). Now, he is the ex­ec­u­tive chair­man of As­cen­dant Re­sources Inc. (ASND: $0.74), a Hon­duran zinc ex­plorer.

Dr. Pillers­dorf, 62, is a re­tired rheuma­tol­o­gist (one who deals with the mus­cu­loskele­tal and im­mune sys­tems). He has in­vested in more than a dozen pub­lic min­ing and oil and gas com­pa­nies, and he sits on the board of a min­ing ju­nior called Griz­zly Dis­cov­er­ies Inc. (GZD: $0.11). He holds 850,000 es­crow shares of BB1. His in­vest­ment com­pany, La Prima In­vest­ments Ltd., holds an­other 750,000. The next shell di­rec­tor, Mr. Szus­tak, 58, is an ac­coun­tant and the chief fi­nan­cial of­fi­cer of James Bay. He is also the chair­man of an in­vest­ment com­pany, Quin­sam Cap­i­tal Corp. (QCA: $0.37). Pre­vi­ously, he was the CFO of Cas­tle and As­cen­dant. He holds 500,000 es­crow shares of BB1. The fi­nal shell di­rec­tor, Mr. Egan, 56, is a part­ner at WeirFoulds LLP. He is the chair­man of James Bay. He holds 500,000 es­crow shares of BB1.

Among the shell’s other es­crow share­hold­ers is Willy Kruh, the chair­man of KPMG’s con­sumer goods and re­tail prac­tice, with 1.6 mil­lion es­crow shares. Con­stan­tine Karayannopou­los, an en­gi­neer, holds one mil­lion. He is the chair­man of Neo Lithium Corp. (NLC: $1.02) and of chem­i­cal man­u­fac­turer Neo Per­for­mance Ma­te­ri­als Inc. (NEO: $17.52). Garth Butcher, a former de­fence­man with the Van­cou­ver Canucks and Toronto Maple Leafs, holds one mil­lion es­crow shares. Af­ter re­tir­ing from hockey, he in­vested in restaurants in Toronto, a liquor store and pub in Kam­loops, ren­tal prop­er­ties in Kelowna and Bellingham, and a mort­gage busi­ness in Lan­g­ley. How well these ven­tures are do­ing now, as­sum­ing they are still around, is un­known.

Chris Bun­cic, an an­a­lyst and the pres­i­dent and CEO of As­cen­dant, holds 500,000 es­crow shares of BB1. Fi­nally, Jen­nifer Ta, the shell’s CFO and sec­re­tary, holds the re­main­ing 200,000 es­crow shares. BB1 Ac­qui­si­tion plans to seek a min­ing, in­dus­trial, tech or life sci­ences deal for its QT. Given its direc­tors’ min­ing ex­pe­ri­ence, a min­ing QT might be good enough for the shell’s po­ten­tial IPO in­vestors, un­less the shell rolls them back.



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