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by Stockwatch Business Reporter

The TSX Venture Exchange increased a fraction to 678.75 Tuesday. Michael Davidson's capital pool shell, Friday Capital Corp., completed its qualifying transaction yesterday, launching Hit Technologies Inc. (HIT). The stock opened today at 65 cents but declined to 50 cents within an hour, after which it fell further, closing at 39 cents on 837,000 shares.

The shell rolled back 1:2.2269, leaving it with 3,333,328 postconsolidated shares, and then issued 39,436,256 postconsolidated shares to the shareholders of Hit, after which Friday Capital changed its name to Hit Technologies Inc. Ian Wilkinson's Nicola Holdings Ltd. is the largest shareholder with 8,999,999 shares. Mr. Wilkinson, who describes himself as an entrepreneur, lives in West Vancouver and is the chairman of Hit. He is also the president of Hothead Games Inc., an app developer that makes video games for download at Google Play and iTunes.

Joining Mr. Wilkinson on the board is Brooks Bergreen, the founder of Hit and the second-largest shareholder with 6,784,654 shares, which he holds through his Vert Holdings ULC. Mr. Bergreen, 36, is also Hit's president, drawing an annual salary of $130,000 plus an option to buy two million shares at 25 cents. He founded the company in 2008, and it is his first time managing a public listing. Hit designs and sells durable, waterproof cases, mounts and lenses for iPhones under the brand name Hitcase. The company targets extreme sports amateurs and athletes for its products, and it also sponsors various extreme sports athletes and events for better coverage. The company says it has sold 25,000 cases so far, but despite that figure it is an unprofitable operation that lost $1.09-million on revenue of $716,235 in the six-month period ended Dec. 31, 2014. Even with those unappealing financials, Dundee Securities Ltd., Mackie Research Capital Corp. and Canaccord Genuity Corp. were able to round up 71 investors who subscribed to a going-public private placement of 8,861,266 Hit shares at 60 cents. Subscribers included Jeff Wolburgh, a venture capitalist who acquired 116,500 shares, Yoel Altman, a consultant and investor in Toronto who acquired 85,000 shares, and Varshney Capital Corp., which acquired 50,000. It is hard to imagine that any of the placees at 60 cents are happy with today's first day of trading.

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