The $ 100 million New Jersey deli company Hometown International has been excluded from an over-the-counter market
Hometown deli in Paulsboro, NJ
The $ 100 million company, which owns only a single delicatessen in New Jersey, was delisted from the OTCQB over-the-counter market “for non-compliance with the rules” and posted a warning on Wednesday night for potential buyers, the company’s CEO that operates it Market said in a tweet.
The action came six days after the deli owner Hometown International was warned in a customer letter from hedge fund manager David Einhorn as a warning to private customers.
Hometown International’s shares have soared over the past year, reaching a market cap of $ 100 million or more – despite sales in Paulsboro, New Jersey of only about $ 35,000 in the past two years.
The stock, which traded just $ 4.75 per share last year, closed Wednesday at $ 13.07 per share on the OTCQB market, up 2.51% from the previous day.
Since the publication of Einhorn’s letter, CNBC has reported that several individuals associated with Hometown International or related companies have faced regulatory sanctions, legal issues and criminal prosecutions.
Cromwell Coulson, the CEO of OTC Markets Group, tweeted late Wednesday, “$ HWIN has been delisted from OTCQB for non-compliance and has been marked as CE for reasons of public interest.”
The acronym “CE” stands for “reservation”, the Latin phrase that means “buyers beware”. OTC Markets Groups operates the OTCQX Best Market, the OTCQB Venture Market and the Pink Market for approximately 11,000 US and foreign stocks.
When the Caveat Emptor label was announced on Hometown International on Wednesday, the OTC Markets Group’s Twitter account was linked to the explanation of the label.
Your deli in your hometown in Paulsboro, NJ
“OTC Markets Group has referred to certain securities as” Caveat Emptor “and has placed a skull symbol next to the stock symbol to inform investors that there may be a need for additional care and thorough due diligence before making any investment decision in this security.” this policy says.
The designation may be issued in accordance with the guidelines of the OTC Markets Group if the company is aware of a misleading or manipulative stock promotion, a fraud investigation or other criminal activity, undisclosed corporate actions, or if there are concerns about the public interest security. “
Paul Morina, CEO of Hometown International, is the Principal and Head Wrestling Coach at Paulsboro High School, which is located near the company’s Your Hometown Deli. He holds common shares and warrants totaling 30.5 million shares.
Morina, who was not accused of wrongdoing, has not returned repeated requests for comments.
Neither the company’s chairman, Peter Coker Jr., of Hong Kong, nor his father, Peter Coker Sr., a major investor in Hometown International, whose company Tryon Capital has a $ 15,000 monthly consultancy agreement with the deli owner.
Aside from Morina’s holdings, most of the company’s shares are held by two groups of companies in Hong Kong and Macau, China. Each group of entities has the same address in their respective cities.