Shell Summary for March 26, 2018

by Stockwatch Business Reporter

The TSX Venture Exchange lost 1.26 points to 816.54 Monday. David Patterson and Colin Watt have listed their seventh capital pool shell, Two Owls Ventures Corp.(OWL), with a $400,000 initial public offering at 10 cents. The stock opened at 13 cents and closed at 20 cents on 26,000 shares.

Mr. Patterson and Mr. Watt, shell-makers and promoters in Vancouver, have each sat on the boards of more than 30 public companies. Currently, they are directors of Emerita Resources Corp. (EMO: $0.11), a mineral explorer in Spain and Brazil. In the shell summaries for Jan. 29, 2015, and June 16, 2017, we discussed Mr. Patterson and Mr. Watt's shell-making record, concluding that their first five capital pool shells yielded two successes and three failures for their IPO investors. We consider a shell to have been a success if its IPO shareholders had sufficient opportunity to get out of their investment with a profit, reasonably soon after the shell closed its qualifying transaction. The duo's two successful shells both launched oil and gas explorers, one in Alberta and the other in Argentina. Neither oil and gas explorer is still in business today, but one of them, Americas Petrogas Inc., traded up to $4.59 in early 2012. Among Mr. Patterson and Mr. Watt's three failures was their first shell, LTT Capital Corp., which closed a pharmaceutical deal in 2007, changed its name to Arura Pharma Inc. and then filed for bankruptcy less than a year later.

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