Local investors allegedly involved in US deli controversy

Macau investors are allegedly involved in a U.S. based company that has topped USD100 million in market capitalization, despite its eatery earning less than USD36,000 in the past two years.
In a report issued by CNBC, the biggest group of shareholders of Hometown International, owner of a Paulsboro, New Jersey deli, were said to be located in the SAR, comprising four investment entities.
According to securities filings, the company only made USD35,748 in sales in the last two years, raising questions as to how the company can have a market value of USD100 million.
According to the report, the biggest single owner in both over-the-counter traded companies is a Macau entity called Global Equity Limited, which holds 42 million common shares and warrants in Hometown International.
The other three entities registered in the city were VCH Limited, IPC-Trading Company and RTO Limited, of which each hold 10.5 million shares and warrants in the deli owner.
As cited in the Securities and Exchange Commission, VCH Limited, IPC-Trading Company, RTO Limited and Global Equity Limited are based in the same office building in Avenida da Praia Grande.
VCH Limited has a registered address on the fifth floor of C&C Lawyers and Notaries building, while the other firms are located on the first floor, according to their filings in the SAR’s Commercial Registry Office.
None of the Hometown International investors or any of their managers or owners are listed by name on the directory in the building’s lobby.
Meanwhile, Hometown International has three major shareholders based in Hong Kong, one of which has an acquisition company, of which one of its board members is involved in the financially troubled hotel, The 13.
Maso Capital Partners, last year created a Nasdaq-traded special purpose acquisition company whose board members include Hometown International Chairman Coker Jr., who is also based in Hong Kong, according to CNBC.
Maso Capitals’s leaders include Manoj Jain who controls more than 52 million common shares and warrants for Hometown International through the Hong Kong entities.
As cited in a Bloomberg report, “The deli is a shell company that will be used to take an Asian company public in the U.S., sort of like a special purpose acquisition company but sleepier.
Hometown International was delisted from an over-the-counter market platform “for not complying with the rules.”
In late April, Hometown International, in an extraordinary SEC filing, disavowed its market capitalization, saying that neither its revenues nor assets warranted such a high stock price, according to CNBC.

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