Hometown Deli in Paulsboro, New Jersey
CNBC
The $ 100 million company that owns only one New Jersey deli was withdrawn from the OTCQB over-the-counter market “for not following the rules” and received a warning label for potential buyers Wednesday night, the director general of the company operating this market said in a tweet.
The action came six days after the charcuterie owner, Hometown International, was singled out as a warning to retail securities customers in a letter from customer, David Einhorn, hedge fund manager.
Hometown International’s stock has risen over the past year, allowing it to capitalize on the market for $ 100 million or more, despite sales at its Paulsboro, New Jersey grocery store of just about $ 35,000. dollars combined in the last two years.
The shares, which had traded just $ 4.75 per share last year, closed the OTCQB market on Wednesday at $ 13.07 per share, up 2.51% from the previous day.
Since Einhorn’s letter was issued, CNBC has reported that several people connected to Hometown International or related entities have faced regulatory sanctions, legal issues and criminal proceedings.
Cromwell Coulson, CEO of OTC Markets Group, tweeted on Wednesday afternoon: “$ HWIN withdrew from OTCQB for non-compliance and marked CE for matters of public interest.”
The acronym “CE” means “caveat emptor,” the Latin phrase meaning “beware of the buyer.” OTC Markets Groups operates the OTCQX Best Market, OTCQB Venture Market and Pink Market for about 11,000 US and foreign stocks.
Earlier Wednesday, when the Caveat Emptor tag was announced at Hometown International, the Twitter account of the OTC Markets group related to its explanation of the tag.
Your hometown, deli in Paulsboro, New Jersey
Google Earth
“OTC Markets Group designates certain securities as ‘Caveat Emptor’ and places a skull and crossbones icon next to the stock symbol to inform investors that there may be reasons to exercise extra care and perform due diligence. complete before making an investment decision on this value, “says this policy.
The designation may be assigned, in accordance with the policy of the OTC Markets Group, if such company is aware of a misleading or manipulative securities promotion, an investigation into fraud or other criminal activities, undisclosed corporate actions or if there is “a public interest concern about security “.
Hometown International CEO Paul Morina is the principal and principal wrestling coach at Paulsboro High School, located near Your Hometown Deli, the company. It has ordinary shares and guarantees a total of 30.5 million shares.
Morina, who has not been charged with any misdemeanor, has not repeatedly asked for repeated requests for comment.
Neither the president of the Hong Kong-based company, Peter Coker Jr., nor his father, Peter Coker Sr., a key investor in Hometown International, Tryon Capital has a $ 15,000 monthly consultation agreement with the owner of the charcuterie.
Aside from Morina’s holdings, most of the company’s shares are held by two groups of entities in Hong Kong and Macao, China. Each set of entities shares the same address in their respective cities.