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by Stockwatch Business Reporter

The TSX Venture Exchange gained 3.62 points to 795.60 Monday. Praveen Varshney has filed a preliminary prospectus to list his third capital pool shell, AAJ Capital 1 Corp. The shell plans to sell a $250,000 initial public offering at 10 cents, through Canaccord Genuity Corp.

Mr. Varshney, 53, is part of the Varshney family of promoters and shell-makers in Vancouver. His first capital pool shell that completed a qualifying transaction, Searchlight Capital Corp., completed its QT in 2011 by launching a medical device promotion, LED Medical Diagnostics Inc. (LMD: $0.07). Searchlight was a success for its IPO shareholders, who had sufficient opportunity to get out of their investment with a profit after the QT closed. (LED Medical peaked at 65 cents in 2011.) Mr. Varshney's other capital pool shell, Genview Capital Corp. (originally called Spring & Mercer Capital Corp.), launched a hemp products distributor called Hempco Food and Fiber Inc. (HEMP: $0.86) in April, 2016. The shell took eight years to close a QT, an extraordinarily long time. The shell's IPO shareholders likely appreciate the opportunity to finally get out of their investment with a profit, but we consider this shell to have been a failure.

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