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by Stockwatch Business Reporter

The TSX Venture Exchange gained 1.14 points to 837.30 Monday. Doug Bailey and Frank Muller's shell graduate, Razor Energy Corp. (RZE: $0.30), listed on the TSX-V today. It did not trade. Razor Energy owns a 90-per-cent-interest in an oil and gas project in the Swan Hills area in central Alberta. The company has money to spend on exploration, having arranged a $30-million loan from Alberta Investment Management Corp. (AIMCo). Razor Energy went public through Darryl Levitt's capital pool shell, Vector Resources Inc. For its qualifying transaction, Vector rolled back 1 for 20, which left it with 186,811 postconsolidated shares issued, then it issued 8,976,295 postconsolidated shares to Razor's shareholders. The shell also issued 1,024,128 postconsolidated shares to AIMCo, and now AIMCo holds 10 per cent of Razor.

Calgary accountant Mr. Bailey, the chief executive officer of Razor, currently holds 9 per cent of the company's shares. Calgary geoscientist Mr. Muller, Razor's chief operating officer, holds 10 per cent. First-time shell-maker Mr. Levitt, a Toronto lawyer, resigned when Vector closed its QT. He is no longer a director of any public company. He listed Vector in November, 2011, with a $500,000 initial public offering of shares at 20 cents. Considering the 1-for-20 rollback, the shell's IPO shareholders would need $4 a share to break even. They should also get a bit of a premium to compensate for being made to wait five years for a QT (which a shell should take just a couple of years to complete).

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