This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The TSX Venture Exchange fell 5.75 points to 1,006.48 Monday. Majid Mangalji's first capital pool shell, Westcap Investments Corp. (WI), will acquire a Red Roof Inn near the Baltimore airport for $8.5-million (U.S.) as its qualifying transaction. Following the acquisition, his shell will convert into a real estate investment trust and change its name to R&R REIT. The exchange has already conditionally approved the acquisition, providing Westcap closes the QT by Oct. 14.

The shell will pay $20,000 (U.S.) and issue 51,408,895 units at a deemed 18 cents a unit to the shareholders of the hotel, of which 45,048,384 will go to RRI BWI LLC and the remaining 6,350,511 will go to R-Roof Assets LLC. Both companies are owned by Red Roof Inns Inc., a company of which Mr. Mangalji controls 72 per cent and Michael Klingher controls 18 per cent. Mr. Mangalji is the shell's chairman and Mr. Klingher is the shell's president, so this QT should close without a hitch.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS