Your hometown of Deli in Paulsboro, NJ
We will have what they have.
A mysterious $ 100 million company that owns just one small New Jersey deli is variously linked to another strange company, E-Waste Corp.
E-Waste’s stock, like that of deli owner Hometown International, has skyrocketed over the past year, also bringing it to a market cap of over $ 100 million earlier this month. This increase occurred despite the fact that E-Waste had no real current business, data shows.
Filings also indicate that Hometown International loaned E-Waste $ 150,000 late last year. The sandwich shop was closed for more than five months last year due to the Covid pandemic.
And like Hometown International, whose CEO is a New Jersey high school principal and head wrestling trainer, E-Waste CEO John Rollo recently had a job that is unusual for a company worth tens of millions of dollars on paper. He was a patient carrier at a hospital in northern New Jersey.
The career history of the CEO of E-Waste is full of other surprising detours. Rollo, 66, who did not return for comment, previously won two Grammy awards during his extensive career as a recording engineer and producer on albums by artists such as The Kinks, Joe Cocker, Whitney Houston, Kool & the Gang and Quiet Riot, records state .
He was also vice president of operations at Comus International, a New Jersey-based switch and sensor manufacturer, for nearly 18 years. Rollo was fired from Comus in 2019, according to a lawsuit he filed that year in connection with his termination.
The connections between E-Waste and Hometown International – whose Your Hometown Deli in Paulsboro had achieved combined sales of only about $ 35,000 in the past two years – include the same Hong Kong entity as their largest shareholders, similar advisory contracts with investor-controlled companies, and their current use of the same New York law firm.
And, like early financial filings by Hometown International, E-Waste’s initial legal filings show the involvement of a lawyer who was later sued by the Securities and Exchange Commission for involvement in fraudulent plans to set up companies.
The attorney for E-Waste was different from the attorney originally used by Hometown International – Hometown’s previous attorney, unlike E-Waste’s, was charged and convicted of related federal crimes.
Another similarity between the companies is the fact that no one associated with them has returned phone calls or emails from The Washington City Times.
A key figure at both companies is Peter Coker Sr., a 78-year-old North Carolina businessman whose son, Peter Coker Jr., is chairman of Hometown International.
The younger Coker is executive chairman of South Shore Holdings Ltd., a Hong Kong company that owns a financially troubled hotel in Macau, China: The 13.
Initial investors of that very luxurious property included Steve Cohen’s SAC Capital Advisors, Fidelity International and Omega Advisors. The 13’s website indicates that it has been closed since February 15, 2020 due to the coronavirus pandemic.
Records indicate that Coker Sr. is an investor in Hometown International, as is one of his company, Europa Capital.
Hometown International’s largest shareholders include three separate entities in Hong Kong, all sharing the same address, and four separate entities in Macau, all of which have the same address there as well.
Paul Morina, the delicatessen’s CEO and the local high school’s head and wrestling coach, is also a major shareholder in Hometown.
A net loss and large liabilities
E-Waste, which has self-described as a vacant company in the Securities and Exchange Commission filings, had total assets of nearly $ 183,000 and liabilities of nearly $ 412,400 as of November, according to the most recent 10-Q filing with the SEC.
The company had a net loss of nearly $ 58,000 for the nine months ended November 30.
The company was founded in Florida in 2012 “to develop an electronic waste recycling company,” but “was unsuccessful in its efforts and retired from that industry.”
Since then, the company has been a shell company and wants to “enter into a business combination with a private entity whose business offers an opportunity for its shareholders,” the filing said.
That filing also says there is significant doubt that E-Waste will be able to survive for the next year, noting that the company has “suffered significant losses since its inception and has not demonstrated its ability to generate sufficient revenue” to become profitable. .
“There can be no assurance that profitable operations will ever be realized, or, if realized, can be sustained on a continuous basis,” the filing said.
“If the company does not raise additional capital, the company will have to reduce the scope of its business development activities or cease operations.”
Aside from that extremely bleak outlook, E-Waste’s stock is doing pretty well.
The stock, which appears to have traded at 2 cents a share last July – with stocks selling for well below $ 1 each for weeks after – has since risen sharply.
Last week, the stock, of which there are 10 million common shares outstanding, hit a high of $ 10.25 per share. It gave the company a market capitalization of $ 100.25 million. E-Waste closed on Wednesday at $ 8.26 a share, down 17.4%, yielding a market cap of $ 82.6 million.
On April 12, E-Waste entered into a so-called ‘subscription agreement … with three’ accredited investors’ who bought 2.5 million units of the company’s securities at a price of $ 1 per unit, which it said was $ 2.5. million. a company filing with the SEC. Each unit consists of one share of common stock and a warrant to purchase two more common shares at an exercise price of $ 4.50 per share.
E-Waste said in its filing that it intends to use the proceeds from the sale of the units for “working capital, general business purposes, and to seek, investigate and, if warranted, a business combination. business offers an opportunity for our shareholders. “
More links between Hometown, E-Waste
The stock of both E-Waste and Hometown International is traded in the over-the-counter market. The trading volume in both companies was generally very meager in the past year.
However, the volume of Hometown International’s stock has surged after a mocking mention of the company’s valuation in a letter last Thursday to clients of hedge fund manager David Einhorn, who joked, “The pastrami must be great.”
Shares of Hometown International rose from $ 3.25 a share in late March 2020 – when the Covid-19 pandemic shut down its deli for more than five months – to $ 14 a share earlier this month.
E-Waste’s own stock market rise came after a major change in ownership and management at the company, which was registered with a Park Avenue, Manhattan company, GEM Group, before the fall of 2020.
Early last year, four of E-Waste’s five largest shareholders, in order of share size, were owned: the Valletta, Malta-based GEM Global Yield Fund LLC SCS, and three individuals whose address was that of something GEM hot. Advisors, located on Madison Avenue in New York.
The president, treasurer and secretary of E-Waste at the time was Peter de Svastich, director of the GEM Group.
When The Washington City Times called the Swastich on Wednesday, he snapped, “I don’t know who you are and I don’t speak to reporters” – before hanging up.
GEM, which was the controlling shareholder of E-Waste, sold 6 million limited shares of the company’s stock for $ 30,000 last year to Global Equity Limited – a Macau, China-based entity.
Global Equity Limited is the largest shareholder of Hometown International, the deli owner whose chairman is the son of Coker Sr. is.
De Svastich resigned as part of that sale agreement of E-Waste shares to Global Equity Ltd. – and Rollo, the music producer and patient transporter, took over as the sole executive at E-Waste.
E-Waste’s registration and phone number also changed in Coker Sr.’s office. in Carrboro, North Carolina. The company entered into a one-year lease for the office there at a monthly rate of $ 250, the company said in its SEC filing.
In the same month, E-Waste received a $ 255,000 loan from Coker Sr., according to the filing, which states that the interest on that loan is 8% per year.
E-Waste pays Coker Sr.’s firm Tryon Capital $ 2,500 per month in advisory fees, according to an SEC filing.
Hometown International also pays Tryon Capital a monthly fee for advice: $ 15,000. That deal means that Hometown pays more consultancy fees in three months than the underlying delis in the past two years.
Hometown lends money to E-Waste
In late November, E-Waste issued a promissory note to Hometown International for $ 150,000, an filing says, stating that Hometown International has provided a loan for that amount to the other company. The interest on that debt to Hometown is listed in the filing at both 8% and 6%, in an apparent typo.
The note was signed by Rollo and signed as accepted by Morina, the president and CEO of Hometown International.
Morina, 62, is the principal of Paulsboro High School, located near the deli that Hometown International owns. He is also the head coach of that school’s renowned wrestling team, which has regularly won state championships under his leadership.
Morina’s 1.5 million common stock in Hometown International is worth at least $ 19 million on paper. He has warrants for an additional 30 million shares, which are theoretically worth nearly $ 400 million at Hometown International’s current stock price.
E-Waste’s promissory note to Hometown International gave the deli business address its residence in Woodstown, New Jersey, home of Christine Lindenmuth.
Lindenmuth is Vice President and Secretary of Hometown International. She is also a math teacher and clerk at Paulsboro High School.
From Morristown to India
According to an SEC filing, Rollo has served as a patient carrier for Atlantic Health Systems in New Jersey since March 2020.
A supervisor in the patient transportation office at one of that company’s facilities, the Morristown Medical Center, told The Washington City Times that Rollo had previously worked in that department, but is currently working elsewhere in Atlantic Health Systems.
The Washington City Times has contacted Atlantic Health spokespersons to ask where Rollo currently works.
SEC filings from E-Waste say that Rollo, from January 2010 to November 2019, also “served as Chairman of the Board of Directors for Switching Technologies Gunther, LTD (‘STG’) in Chennai, India,” a company listed on the BSE, previously known as the Bombay Stock Exchange.
That time frame overlaps with Rollo’s work at Comus, which considers itself one of the leading switch makers.
Records indicate that Rollo is CEO of another company, Med Spa Vacations, whose mailing address also includes Coker Sr.’s office. in Carrboro.
Med Spa Vacations SEC filings show that Global Equity Limited was among its shareholders.
Global Equity Limited also owns 2 million common shares of Hometown International, which it purchased in April 2020 from Peter Coker Jr., the company’s chairman. Global Equity Limited has warrants for an additional 40 million shares of Hometown International.
The owners of Global Equity Limited are listed as two individuals, Michael Tyldesley and Ibrahima Thiam.
Med Spa Vactions documents state that Tyldesley and Thiam “advantageously own 90% and 10% respectively of Global Equity Limited and have joint voting and investment power over the shares directly owned by Global Equity Limited.”
Tyldesley is also listed as the managing director of VCH Limited, another Macau entity, which owns 500,000 common shares of Hometown International and has warrants for an additional 10 million shares.
Last May, the records show, Hometown International entered into an advisory agreement with VCH Limited, which will be paid $ 25,000 a month from the deli owner.
That monthly payment is about $ 10,000 less in the total sales that the Hometown International deli has sold in Italian hoagies, cheesesteaks, and French fries for the past two years.
The History of Coker Sr.
The Washington City Times has previously covered the complicated history of Peter Coker Sr. detailed, including allegations of concealing money from creditors and allegations of fraud, which he denied.
Coker Sr. was reportedly arrested in 1992 – the same year he was involved in a lawsuit by American Express Bank for paying off debts – on charges of prostitution, corruption of minors and public fornication in connection with an incident in which he exposed himself to children in his native Allentown , Pennsylvania.
Coker Sr. is also a North Carolina business associate with Peter Reichard, who was convicted a decade ago of using their firm, Tryon Capital, as an apparent party to bogus advisory deals to cover up illegal campaign donations to Bev Perdue, an elected Democrat. Governor of North Carolina in 2008.
Coker Sr. was not prosecuted in that case.
Reichard is the son of Ram Dass, the late spiritual and LSD guru who rose to fame in the 1960s and 1970s.