Hometown Deli in Paulsboro, NJ
CNBC
The $ 100 million company, which owns just one New Jersey delicacy, was removed from the OTCQB price off the counter for failing to comply with the rules, and hit a warning label for prospective buyers on Wednesday night. operating the market, said in a tweet.
The action came six days after the delicate owner, Hometown International, was branded as a warning to retailers in a customer letter by hedge fund manager David Einhorn.
Hometown International’s share has soared in the past year, giving it a market capitalization of $ 100 million or more – despite sales in Paulsboro, NJ, a deli of only $ 35,000 in the past two years.
The stock, which traded as low as $ 4.75 per share last year, closed on the OTCQB market on Wednesday at $ 13.07 per share, 2.51% higher than the previous day.
Since Einhorn’s letter was issued, CNBC has reported that multiple people affiliated with Hometown International or related entities have faced regulatory sanctions, legal issues and criminal prosecution.
Cromwell Coulson, CEO of OTC Markets Group, tweeted late Wednesday: “$ HWIN Discarded from OTCQB because it does not comply with the rules and considers CE to be a public interest.”
The acronym “CE” stands for “caveat emptor”, the Latin phrase meaning “copper beware”. OTC Markets Groups operates the OTCQX Best Market, OTCQB Venture Market and Pink Market for approximately 11,000 US and foreign securities.
Earlier Wednesday, when it announced the Caveat Emptor label on Hometown International, the OTC Markets Group’s Twitter account linked to its explanation of the label.
Your Thuisdorp Deli in Paulsboro, NJ
Google Earth
“OTC Markets Group designates certain securities as’ Caveat Emptor ‘and places a skull and crossbones icon next to the stock symbol to notify investors that there may be reason to exercise extra caution and exercise due diligence before’ an investment decision is made in that security, ‘that policy says.
According to the policy of OTC Markets Group, the designation may be granted if the company becomes aware of a misleading or manipulative stock, an investigation into fraud or other criminal activity, unknown corporate conduct, or if there is a “public interest in connection”. with the security. ‘
Hometown International CEO Paul Morina is the principal and head wrestling coach of Paulsboro High School, located near the company Your Hometown Deli. He holds ordinary shares and warrants totaling 30.5 million shares.
Morina, who is not accused of any offense, did not return repeated requests for comment.
The chairman of the company, Peter Coker Jr. in Hong Kong, or his father, Peter Coker Sr., a major investor in Hometown International, whose firm Tryon Capital has a $ 15,000-a-month consulting agreement with the deli owner.
In addition to Morina, most shares are owned in two sets of companies in Hong Kong and Macao, China. Each set of entities has the same address in their respective cities.