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by Stockwatch Business Reporter
The TSX Venture Exchange fell 4.16 points to 758.57 Thursday. David Mitchell has filed a preliminary prospectus to list a capital pool shell called Commerce Acquisition Corp. The shell plans to sell a $500,000 to $1-million initial public offering at 20 cents, through Echelon Wealth Partners Inc.
Mr. Mitchell, 53, is a shell-maker in Mississauga. He runs a corporate consulting firm called Stillbridge Ventures Inc. Between November, 2006, and July, 2014, Mr. Mitchell listed five capital pool shells: Kingsmill Capital Ventures Inc., Kingsmill Capital Ventures II Inc., Whiteknight Acquisitions Inc., Whiteknight Acquisitions II Inc. and Whiteknight Acquisitions III Inc. The two Kingsmill shells merged in 2009 and launched the grandly named Innovative Composites International Inc., a manufacturer of composite panels. Innovative Composites is now defunct, but in its first two years, it gave the Kingsmill shells' IPO shareholders plenty of opportunities to get out of their investment with a substantial profit. We therefore consider the Kingsmill shells to have been successes. Mr. Mitchell's three Whiteknight shells launched the following: Smart Employee Benefits Inc. (SEB: $0.17), which designs software for processing benefits and claims; Diamond Estates Wines and Spirits Inc. (DWS: $0.275), which operates wineries in Ontario; and Delivra Corp. (DVA: $0.37), which sells skin cream. The IPO shareholders of the first Whiteknight had sufficient opportunity to get out of their investment with a profit after the shell closed its qualifying transaction, but the same was not true for the IPO shareholders of the second and third Whiteknight shells. Based on our measure, Mr. Mitchell's shell-making record for his first five shells is three successes, two failures.
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