Shell Summary for Feb. 27, 2018

by Stockwatch Business Reporter

The TSX Venture Exchange lost 11.67 points to 815.20 Tuesday. Andrew Shapack and Sean Nakamoto have filed a preliminary prospectus to list a capital pool shell called Pine Trail Capital Trust. The shell is a trust, rather than a corporation, because it aims to launch a real estate investment trust for its qualifying transaction. Pine Trail plans to sell a $400,000 initial public offering at 10 cents through Haywood Securities Inc. The shell also has 10 million escrowed units, which it sold at fivecents between December, 2017, and February, 2018. Mr. Shapack and Mr. Nakamoto each hold 2.45 million of the escrowed units.

Mr. Shapack, 46, previously practised law in New York with a focus on real estate finance. He moved to Toronto in 2007, and the following year he listed a capital pool shell called GT Canada Capital Corp. with a $500,000 IPO at 20 cents. In 2010, GT Canada Capital closed a medical real estate deal and launched GT Canada Medical Properties Inc. This resulting issuer traded above the shell IPO investors' break-even price of 20 cents for six months, but it was a thin trader. It did not give the shell IPO investors sufficient opportunity to get out of their investment with a profit, so we consider GT Canada Capital to have been an unsuccessful shell for them. At the end of 2010, GT Canada Medical rolled back 1 for 10. Then in 2015, it was acquired for about $1.95 a share by Northwest Healthcare Properties Real Estate Investment Trust (NWH: $10.55) in an all-share deal. More recently, Mr. Shapack was a trustee of OneREIT from July, 2014, to July, 2017. OneREIT is now a part of SmartCentres Real Estate Investment Trust (SRU: $29.33).

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