New Jersey high school wrestling coach is CEO of $100 million firm that owns one deli

1 month ago 19

Your Hometown Deli successful Paulsboro, N.J.

Google Earth

He's a fable successful New Jersey precocious schoolhouse wrestling – and a enigma successful the banal market.

Paul Morina, the main of Paulsboro, New Jersey, High School, is listed successful fiscal records arsenic the president, CEO, CFO and much astatine a Nevada-incorporated institution whose banal is trading astatine levels that springiness it a valuation much than $100 million.

That's an oddly precocious valuation due to the fact that the company, Hometown International, owns a delicatessen — and lone 1 tiny delicatessen — successful Paulsboro, wherever the Morina-coached precocious schoolhouse wrestling squad often wins authorities championships. The institution has disclosed that it has shareholders based successful China's Macau territory.

The shop, the Hometown Deli, did conscionable $35,000 successful income — combined — implicit the past 2 years, according to Hometown International's yearly report, filed March 26 with the Securities and Exchange Commission.

Hedge money manager David Einhorn mentioned Hometown International successful a missive to clients Thursday, which warned astir the risks to retail investors.

"The pastrami indispensable beryllium amazing," Einhorn cracked of the company, whose banal from precocious March 2020 to aboriginal September roseate to much than $9 per stock from $3.25 per stock contempt the deli — its lone operating concern — being closed owed to the coronavirus pandemic during that clip frame.

Hometown International's yearly study shows the Morina, who is besides the company's treasurer and a director, has 1.5 cardinal shares of communal shares successful the company, with warrants for different 30 cardinal shares. Morina owns 19% of Hometown's outstanding 7.79 cardinal communal shares.

On Thursday, Hometown's stock, which trades thinly connected the over-the-counter market, had a closing terms of $13.50 per share.

That makes Morina's communal banal holdings unsocial worthy $20.5 cardinal — connected paper, astatine least.

FactSet information shows that Hometown seldom has much than a fewer 100 shares alteration hands per day, and often has days erstwhile nary shares are exchanged.

CNBC has reached retired for remark to Morina, whose biography successful the SEC filing says helium has won 25 people authorities championships arsenic a coach, with much than 550 victories.

That biography does not accidental that Morina had anterior acquisition successful the nutrient work industry.

Nonetheless, Hometown International said successful its filing, "We judge that Mr. Morina's in-depth cognition and extended acquisition makes him a invaluable subordinate of our committee of directors."

The filing says that Hometown International, which was incorporated successful 2014, entered into a lease with Mantua Creek Group, of which Morina is simply a member, for its store space.

Hometown's vice president and caput is Christine Lindenmuth — a 46-year-old mathematics teacher astatine Paulsboro High School, according to the SEC filing.

Lindenmuth, who did not instantly respond to requests for comment, besides does not look to person immoderate anterior acquisition successful nutrient service.

But Hometown International said it believes her "in-depth cognition and extended experience" besides marque her a valued institution director.

Lindenmuth holds nary shares successful the company, according to the SEC filing.

The yearly study says, "The Company presently has nary full-time employees isolated from its officers and directors, Paul F. Morina, President, and Christine T. Lindenmuth." It adds: "Both are presently moving for the Company without immoderate compensation."

Hometown's yearly study suggests that the institution was formed with the thought of creating a concatenation of stores with "a caller Delicatessen concept."

"Through our wholly-owned subsidiary, Your Hometown Deli Limited Liability Company ('Your Hometown Deli'), we run a delicatessen store that features 'home-style' sandwiches and different entrees successful a casual and affable atmosphere," the filing says.

"The store is designed to connection section patrons of each ages with a comfy assemblage gathering places. Targeted towards smaller towns and communities, the Company's archetypal portion was built successful Paulsboro, New Jersey."

But that location, a low-slung, boxy gathering located conscionable crossed the Delaware River from Philadelphia, remains the lone store the institution owns aft astir 7 years successful business.

The company's chairman, according to the yearly report, is Peter Coker Jr., who is listed arsenic holding nary Hometown International shares.

Coker's bio successful the company's yearly study says the 1990 postgraduate of Lehigh University has been president of South Shore Holdings Limited, a Hong Kong-listed company, since 2013.

It besides says that Coker was the managing spouse of Pacific Advisers, and was besides a spouse successful a Shenzhen, China-based backstage equity steadfast called TDR Capital Investment Ltd. from 2009 to 2013.

"From 2006 to 2009, Mr. Coker served arsenic Chairman of Global Trading Offshore Pte (Singapore)," the filing says. "From 2002 to 2005, Mr. Coker served arsenic the Chairman of Wellington Securities (New Zealand). Mr. Coker served arsenic an serviceman of the Bridge Companies anterior to joining Wellington Securities (New Zealand) successful 2002."

Coker's father, North Carolina nonmigratory Peter Coker Sr., is listed connected the SEC filing arsenic owning 63,34 shares of communal banal successful Hometown International, with warrants for 1.26 cardinal much shares.

CNBC has reached retired for remark from some Cokers.

Other owners of Hometown shares see Blackwell Partners LLC, Series A, which has an code successful Hong Kong; and 2 different Hong Kong entities, Star V Partners LLC, and Maso Capital Investments Limited.

Four different companies oregon entities listed arsenic Hometown International stock owners are based successful Macau, China.

One of the Macau companies, VCH Limited, successful May 2020 entered into a consulting statement with Hometown International, the filing said.

"Pursuant to this agreement, VCH was engaged arsenic a advisor to the Company, to, among different things, make and physique a beingness with precocious nett worthy and organization investors," Hometown said successful its yearly report.

"The word of the statement is 1 year; provided, however, that each enactment has the close to terminate the statement upon 30 days' anterior written announcement to the other," the study said.

"Pursuant to the agreement, VCH shall person $25,000 per period during the word of the agreement, successful summation to reimbursement of expenses approved successful beforehand by the Company."

Hometown International booked a $624,438 nonaccomplishment for 2020, and a $153,930 nonaccomplishment for 2019, according to the firm's yearly report.

Much of the company's increases successful costs successful 2020 came from $320,000 successful what it called "consulting fees."

The elder Coker has been identified successful different SEC-filed documents arsenic is the laminitis and managing manager of Tryon Capital Ventures, a North Carolina entity that has a consulting statement with Hometown that pays Tryon $15,000 per month.

"We expect extending the word of the Consulting Agreement with Tryon for an further one-year term," the yearly study says.