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by Stockwatch Business Reporter

The TSX Venture Exchange gained 4.29 points to 775.91 Friday, but it ended the week down 15.29 points. David Patterson and Colin Watt have filed a preliminary prospectus to list their sixth capital pool shell, VON Capital Corp. The shell plans to sell a $300,000 initial public offering at 10 cents, through PI Financial Corp.

Vancouver promoter Mr. Patterson, 63, has been a director of more than 50 public companies. These days, he is a director of Emerita Resources Corp. (EMO: $0.125), which is a mineral explorer in Spain and Brazil, and is the chief executive officer of MK2 Ventures Ltd. (MK: $0.135), an NEX shell. Mr. Patterson's shell-making partner, Mr. Watt, 45, is a management consultant who has sat on the boards of more than 30 public companies. He is a director of Emerita, MK2, and an Alberta oil and gas explorer, Front Range Resources Ltd. (FRK: $0.125).

In the Shell Summary for Jan. 29, 2015, we discussed Mr. Patterson and Mr. Watt's shell-making record, concluding that their first four capital pool shells yielded two successes and two failures for their IPO shareholders. We consider a shell to have been a success if its IPO shareholders had sufficient opportunity to get out of their investment with a profit, reasonably soon after the shell closed its qualifying transaction. Also, the shell should not have taken much longer than two or three years to close a QT. The TSX-V gives shells a QT completion deadline of 24 months from listing; beyond this period, a shell may still work on its QT, but it would do so as a demoted shell on the NEX.

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