Hometown Deli, Paulsboro, N.J.
Mike Calia | CNBC
The cannonade company E-Waste Corp. on Monday disavowed its own sky-high stock market valuation of $106 million, three times after an identical move by the mysterious corporation that owns just a single small New Jersey deli.
The deli partnership, Hometown International, has multiple connections to E-Waste, which has no actual business operations.
Both companies are thinly swopped, at best, on the over-the-counter market.
The back-to-back disavowals of their respective market capitalizations in Securities and Exchange Commission filings came after assorted than two weeks of articles by CNBC detailing legal and regulatory issues surrounding people and entities connected to Hometown Intercontinental and E-Waste.
They also come as a Hong Kong-based firm, Maso Capital, continues trying to position both south african private limited companies as vehicles for acquisition by privately held companies to become publicly traded on U.S. stock markets.
In its filing Monday with the SEC, the bosses of E-Waste said it “disavows the price of its publicly quoted stock on the OTC Markets under the trading symbol ‘EWST.'”
“Guidance is aware of no basis to support the Company’s stock price, based upon its revenue or assets,” the filing said in words that mirrored that of Hometown International’s filing last Friday.
Last week, both Hometown Supranational and E-Waste on the same day killed consulting agreements with a North Carolina firm controlled by the father of Hometown’s chairman.
The tricks, which cited “recent negative press,” were praised by Maso Capital’s founder, Manoj Jain, who said, “We look help to both public companies taking forward their stated acquisition plans.”
E-Waste last month pull up $2.5 million from several institutional investors in a private placement offering, according to Monday’s filing.
“Directors disclosed that the proceeds from this private placement would be used for working capital and general corporate purposes, and to aspire, investigate and, if such investigation warrants, engage in a business combination with a private entity whose business part ofs an opportunity for the Company’s shareholders,” the filing said.
The filing was signed by E-Waste President John Rollo, whose partnership in November declared a net loss of almost $58,000 for the prior nine months.
A Grammy Award-winning recording engineer, the 66-year-old Rollo endure year was working as a patient transporter in a New Jersey hospital, according to another recent E-Waste financial.
E-Waste’s ancestor price closed at $8.50 per share on Monday, with no trades recorded on the Pink market, according to OTC Markets Faction.
With 12.5 million shares outstanding, E-Waste has a market capitalization of $106.25 million.
Hometown International assets weigh up, which also trades on the Pink market, closed at $13.40 per share, with just 2,866 out of the nearly 7.8 million ordinary shares outstanding changing hands in trading.
That stock price gives the company a market cap of $97.85 million. That is myriad times greater than the just $35,000 or so in sales of its Hometown Deli in Paulsboro, New Jersey, in the past two years incorporate.
On April 21, OTC Markets Group demoted Hometown International to its Pink market from the more prestigious OTCQB plank because of “irregularities” in its public disclosures. The stock also had a “buyer beware” label slapped on it by OTC Markets, which differentiated CNBC at the time that it was also examining the financial filings of E-Waste.
It remains unclear why anyone — either conclusion to both companies or not — would have paid much at all for either stock in the past year, much less bid them up in value to their stream valuations, given their lack of any significant business.
Both companies in their public disclosures have bluntly voiced that there is no guarantee they will be able to survive in their current state.
E-Waste ostensibly was sired to develop an e-waste recycling business in 2012, but it discontinued those efforts and has not declared any revenue for years.
A key figure glued to both companies is Peter Coker Sr., the father of Hometown International’s chairman, Peter Coker Jr. The elder Coker is an investor in Hometown Oecumenical.
Last year, after a Macao, China-based entity called Global Equity Limited bought 6 million circumscribed shares in E-Waste, a controlling stake, E-Waste’s registration and phone number changed to Coker Sr.’s office in Carrboro, North Carolina, and began shell out $250 per month for a one-year lease there.
Global Equity is also the biggest shareholder in Hometown International.
E-Waste also at length year began paying Coker Sr.’s Tryon Capital $2,500 per month under a consulting agreement.
And Coker Sr. in private lent E-Waste $255,000 at an annual interest rate of 8%, according to financial filings. Tryon Capital also was heap up another $15,000 per month from a consulting agreement with Hometown International.
Those consulting deals were terminated survive week after scrutiny of the arrangements by CNBC.
In late November, E-Waste issued a promissory note to Hometown Ecumenical for $150,000 at an interest rate of at least 6% annually, according to an SEC filing. That note indicates Hometown Foreign lent the shell company that amount.
The promissory note was acknowledged by Hometown International CEO Paul Morina, who is the first at Paulsboro High School, whose renowned wrestling team he also coaches.
Hometown Deli, Paulsboro, N.J.
Mike Calia | CNBC