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Shell Summary for Dec. 11, 2014

2014-12-11 19:38 ET - Market Summary

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by Stockwatch Business Reporter

The TSX Venture Exchange fell 4.41 points to 663.50 Thursday. Larry Phillips's capital pool shell, Niagara Ventures Corp. (NIA), completed its qualifying transaction yesterday by acquiring Kevin Stratton's Blu-Dot Beverage Corp., which sells bottled Protein Tea drinks in various grocery stores across Canada, and badly needs to sell more. Niagara resumed trading today but the market has not yet developed a taste for the company's tea deal or, for that matter, its shares. The stock did not trade, closing with no bids and a 17-cent ask. Niagara's QT means one less capital pool shell in the sector. There are now 149 capital pool shells on the TSX-V and the NEX, of which 38 are suspended, 44 are halted, and 67 are trading, many of which are available for a QT.

There are more shells on the way. Jason Krueger recently filed a preliminary prospectus to list a new capital pool shell, Vier Capital Corp. The Calgary office of PI Financial Corp. will sell a $350,000 initial public offering of 3.5 million shares at 10 cents. Last September, the shell sold 3.85 million escrow shares at five cents. Mr. Krueger, the shell's 45-year-old founder and president, owns 550,000 escrow shares. He has been a founding director of four previous capital pool shells but the president of only one. That was Summus Capital Corp., which went public at 20 cents in October, 2008, probably one of the worst times to list a capital pool shell. Despite the poor timing, Mr. Krueger managed to sell Summus to a group that wanted to invest in, of all things, Mongolian real estate. In February, 2011, Summus rolled back 1:2 and became Mongolia Growth Group Ltd. (YAK: $1.19). The stock resumed trading at 60 cents and marched up to a high of $6.04 by July of that year, after which it quickly fell to around $4.80, and then slowly declined to today's $1.19. This miracle was a big success for Mr. Krueger's IPO shareholders, who could have earned a profit of up to 15 times their original investment. If for some unfathomable reason an IPO shareholder has not yet sold, he could still sell today at a profit.

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