Shell Summary for Jan. 24, 2018

by Stockwatch Business Reporter

The TSX Venture Exchange dropped 6.33 points to 893.59 Wednesday. Greg Smith's Canadabis Capital Inc. (CANB) has arranged to acquire Dan Zwirn's Applied Data Finance LLC as its QT. Applied Data is an on-line lender targeting what it calls "underbanked" Americans. It approves loans through its Personify website, as long as the customer has a checking account, a source of income and passes a brief risk assessment. It says it has advanced $90-million (U.S.) to over 23,000 customers so far. Since inception, Applied Data has raised $6.5-million in equity and $95-million in debt with its most recent $20-million debt instalment coming last month from Dallas-based Red Point Capital Group. In connection with the QT, Canadabis hopes to raise $65-million. It will have more information shortly.

Mr. Zwirn is the chief executive officer of investment company Arena Investors LP, a subsidiary of The Westaim Corp. (WED: $3.10). From 2001 to 2009 he ran his own eponymous New York hedge fund, D.B. Zwirn & Co. He had to dismantle the fund in 2009, following a four-year Securities and Exchange Commission investigation. D.B. Zwirm self reported to the SEC in 2005 after noticing some accounting irregularities. The irregularities comprised a former chief financial officer misusing $870-million (U.S.) worth of client money, which included the purchase of an $18-million (U.S.) private jet.All client money was returned, but the firm could not survive.

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