NJ Wrestling Coach's $100M Company That Owns Deli Delisted

PAULSBORO, NJ — The company that owns a small South Jersey deli and saw its value increase by $100 million during the coronavirus pandemic has been delisted, the over-the-counter financial market that trades its stock announced.

“OTC Markets Group has determined that Hometown International Inc. does not meet the requirements of our OTCQB Market,” the financial group said in a statement. “HWIN has been removed from OTCQB effective immediately and may not reapply for a period of at least 90 days.”

OTC Markets is a D.C.-based watchdog that evaluates compliance, stock promotion and other public interest concerns. It has also added the Caveat Emptor designation for Hometown International, which will remain until they believe there is no longer a public interest concern.

The label serves as a “buyer beware” for those who may be interested in the stock, warning that “there is a public interest concern associated with the company, which may include a spam campaign, questionable stock promotion, known investigation of fraudulent activity committed by the company or insiders, regulatory suspensions, or disruptive corporate actions.”

Hometown International owns Your Hometown Deli in Paulsboro. Paulsboro High School Principal and wrestling legend Paul Morina is listed as the CEO/CFO/Treasurer and a Director for the company, which watched its value soar despite having only $21,772 in sales in 2019 and $13,76 in sales last year, according to the company's filing with the Securities and Exchange Commission (SEC). Read more here: Value Of NJ Wrestling Coach’s Company That Owns Deli Hits $100M

It’s not clear how Hometown International gained so much wealth so quickly, but it has not been accused of any wrongdoing as of Monday morning. Morina wasn’t immediately available for comment Monday morning.

Hometown is a Nevada-based company that incorporated in 2014, according to the filing. It opened its first and only deli in Paulsboro on Oct. 14, 2015.

The year it opened, the Securities and Exchange Commission (SEC) told them in a public letter that they needed to register as a shell company, saying they engaged in only "nominal operations."

Hometown disputed that claim, stating that "Because renovation and building work is a necessary part of our operation prior to our grand opening, and we have completed much of the necessary work to achieve our goal of opening the deli, Company does not have only nominal operation and therefore should not be deemed as a shell company."

“The activities described in your response do not appear to constitute more than nominal operations, and the leasehold improvements recorded on your balance sheet do not appear to constitute more than nominal assets,” the SEC responded. “In this regard, we note that you have leased the storefront from a related party and that the operating lease agreement has not been fully executed. We also note that you have not yet entered into supply contracts. Please revise the disclosure throughout your filing to state that you are a shell company and to disclose the consequences of that status.”

The SEC also questioned the company about its auditors' statement that there is a “going concern surrounding the business,” and questioned the disclosure of their “principle stockholders,” including Morina and Paulsboro High School Math Teacher Christine Lindenmuth, the company's vice president, secretary and director.

“It appears the number of shares held by Mr. Morina and Ms. Lindenmuth have declined over the past year such that they no longer have control over the company,” the SEC wrote.

While Hometown wrote that Morina would remain in charge, they couldn’t offer a guarantee that they would remain in business.

The company’s chairman is listed as Peter L. Corker Jr., who is also the chairman of a company based in Hong Kong. Four other owners are listed as being based in Macau, China.