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by Stockwatch Business Reporter
The TSX Venture Exchange added 1.54 points to 692.16 Thursday. Michael Davidson's halted capital pool shell, Friday Capital Inc. (FYC), expects to complete its acquisition of Hit Technologies Inc. by the end of next week.
The shell will roll back its shares 1:2.2269, leaving it with 3,333,333 postconsolidated shares, after which it will issue 39,436,256 postconsolidated shares to the shareholders of Hit, for a total float of 42,769,589 shares. Friday Capital will then change its name to Hit Technologies Inc.
Ian Wilkinson, a founding director of Hit and a West Vancouver businessman, will become the largest shareholder with 9,224,550 shares, which he will hold through a holding company, Nicola Holdings Ltd. Mr. Wilkinson, 56, is the president of Hothead Games Inc., a privately held app developer that currently has 10 video games available for download at Google Play and iTunes.
Hit's founder, Brooks Bergreen, will become the second-largest shareholder with 6,784,654 shares. Mr. Bergreen, 36, will also become the chief executive officer with an annual salary of $130,000. He is an adventurer who spent six years until 2007 designing and building satellite networks for NATO and the U.S. Army in Kosovo and Afghanistan. He has since established a film company and produced a documentary about the war in Afghanistan and another about landmines in Cambodia. In 2008, the multitalented promoter incorporated Iceberg Commerce Inc., which last year changed its name to Hit Technologies. These days, Hit designs and sells waterproof cases, mounts and lenses for iPhones. The products, sold under the brand name Hitcase, are designed for use by mountain bikers, water skiers, surfers, skateboarders and other extreme sports amateurs and athletes. The company sponsors several athletes, including Ian Walsh, a professional surfer, and Matt Berger, a professional skateboarder. To date, Hitcase has sold more than 25,000 cases, but it is unprofitable. In the quarter ended Dec. 31, 2014, Hit lost $667,778 on revenue of $440,327, compared with the quarter ended Dec. 31, 2013, when it lost $185,273 on revenue of $455,267. Despite these unappealing financial figures, Hit has been able to round up investors in its preparations of going public. Last January, it sold 8,131,266 subscription receipts at 60 cents, and then in April it sold another 730,000 receipts at 60 cents. Subscribers to those financings included Geoffrey Moore, a stock promoter who acquired 166,666 shares, Jeff Wolburgh, a venture capitalist who acquired 116,500 shares, and William Glenn Shyba, a real estate investor now with Origin Merchant Partners in Toronto, who acquired 50,000 shares.
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