Shell Summary for Oct. 12, 2018
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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