Shell firm E-Waste rejects a $ 106 million market cap after the mysterious New Jersey delicatessen firm did the identical
Hometown Deli, Paulsboro, N.J.
Mike Calia | CNBC
Shell company E-Waste Corp. rejected its own sky-high market valuation of $ 106 million on Monday, three days after an identical move by the mysterious company, which owns only a single delicatessen in New Jersey.
The deli company Hometown International has multiple links with E-Waste, which has no actual business operations. Both companies have a market capitalization of around $ 100 million.
The successive denials of their respective market capitalizations in filings with the Securities and Exchange Commission came after more than two-week articles from CNBC setting out legal and regulatory issues pertaining to individuals and organizations related to Hometown International and E-Waste.
Maso Capital, a Hong Kong-based company, continues to seek to position both companies as vehicles for acquisition by privately held companies in order to be publicly traded in the US stock markets.
Last week, both Hometown International and E-Waste entered into advisory agreements on the same day with a North Carolina company controlled by the Hometown chairman's father. These steps were praised by Maso Capital's founder, Manoj Jain.
In its filing with the SEC on Monday, E-Waste's management stated that it "is opposed to the price of its publicly listed shares in the OTC markets under the symbol" EWST "."
"Management has no knowledge of a basis to prop the company's stock price based on its earnings or assets," the filing states.
The filing was signed by E-Waste President John Rollo, whose company reported a net loss of nearly $ 58,000 for the past nine months in November.
Rollo, 66, a Grammy-winning audio engineer, worked as a patient truck in a New Jersey hospital last year.
According to OTC Markets Group, E-Waste's share price closed at $ 8.50 per share on Monday with no business in the pink market. With 12.5 million shares outstanding, E-Waste has a market capitalization of $ 106.25 million.
Hometown International's stock, also traded on the Pink Market, closed at $ 13.40 per share with just 2,866 of the nearly 7.8 million outstanding common shares trading in trading.
That stock price gives the company a market cap of $ 97.85 million, which is many times higher than the combined sales of its Hometown Deli in Paulsboro, New Jersey, over the past two years.
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