Friday, May 9, 2014

Partners Real Estate Investment Trust - PAR.un.t

Very interesting state of affairs at Partners Real Estate Investment Trust, fully worthy of being included with the worst the Venture bordello has to offer.
"On May 1, 2014, Orange Capital publicly raised very serious concerns regarding Partners REIT's recently closed Ontario property acquisition and requested an immediate independent forensic investigation. Within days of Orange Capital's public statements, the REIT announced it had obtained material "new" information with respect to the Ontario property acquisition that persuaded the trustees to believe that Ron McCowan and Laura Philp, the owner of Holyrood, do indeed have a "close business relationship" and "should be considered to be acting together under applicable regulation."

Meanwhile, Orange Capital believes the material "new" information that the trustees obtained: (a) was at all times, readily accessible in the public domain; (b) was the subject matter of discussion in the press and by analysts; and (c) should have been considered before the transaction was concluded, had there been any reasonable due diligence."
Yet another example of what happens in a securities vacuum when horrid crooked basterds have free reign to do as they please ... which usually entails ripping off shareholders stupid.

The senior exchange, in and by itself, once again proves it offers no more protection than the krap Venture exchange.

"The vendor is named in Partners securities filings as Holyrood Holdings Limited. It is unclear how that company is related to Ron McCowan, who bought the City Centre in 2011 for about $25 million. A numbered Ontario company that lists McCowan as its president is one of two companies behind a $110-million mortgage charged against the City Centre last June.

McCowan bought $27 million worth of shares in Partners last November.

A previous management agreement with McCowan was terminated (with a termination fee of $1.5 million) in order to internalize management in the REIT. He was then named interim CEO. Under that plan, Partners' head office will relocate from Victoria, B.C. to Barrie, Ont., where McCowan's business is located. The name Holyrood Holdings Limited was reserved by an Ontario corporation on Jan. 27, 2013."