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Shell Summary for Sept. 16, 2014

2014-09-16 19:25 ET - Market Summary

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by Stockwatch Business Reporter

The TSX Venture Exchange fell 5.81 points to 975.70 Tuesday. Michael Thomson's new capital pool shell, Rodeo Capital III Corp. (ROP), will list on the TSX-V Wednesday. It is the second capital pool shell to list this month and the 13th to list this year, down from 29 that had already listed by this time last year. Darrin Hopkins, a Calgary broker at Richardson GMP Ltd., sold the shell's $200,000 initial public offering of two million shares at 10 cents. Richardson GMP also sold the IPO of this month's first new capital pool shell, Benoit Chotard's Orletto Capital Inc. (OLE: $0.10).

Rodeo Capital III sold three million escrow shares last June at five cents. Mr. Thomson, 57, is the shell's founder, president and largest shareholder with 1.9 million escrow shares. He is a lawyer who listed his first shell 20 years ago on the Alberta Stock Exchange, which then operated the junior capital pool program. The shell, Adventure Capital Corp., went public at 10 cents in March, 1994. Later that year, in October, it acquired a collection of hearing and speech clinics in British Columbia, and changed its name to HealthCare Capital Corp. The stock opened at 18 cents and steadily climbed to its $4 peak in April, 1996. IPO buyers had plenty of time to sell at a profit, making Mr. Thomson's first shell a big success. He then went on a 10-year shell hiatus of sorts, working in the brokerage business at C.M. Oliver & Co. Ltd. and then at Research Capital Corp. From 2001 to 2004, his CV is blank. Then in September, 2004, he listed his second capital pool shell, Bonita Capital Corp. It sold IPO shares at 20 cents. In April, 2005, Bonita became Palmarejo Gold Corp., a Mexican gold explorer that opened at $2. It was taken over in December, 2007, at $12.20 a share by Coeur D'Alene Mines Corp. This was an even bigger success for Mr. Thomson, making it two successes and no failures. Now, with a win like Palmarejo Gold, any experienced promoter knows what to do: get on with doing it again because a hot hand should always be used again, and quickly, before it fades. As it happens, Mr. Thomson knows all about stock promoters -- how they work, what makes a good one and what makes a bad one etc. In the early 1990s, before joining the brokerage business, he worked in the corporate finance and listings department of the Vancouver Stock Exchange where he would have worked with promoters, their lawyers and more than a few brokers, learning all about speculative companies, how they are structured and the people who make the stocks go up and down.

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