4 ms·

The Mystery of the $113M Deli

16 points by jbegley 5y ago

pscoutou 5y ago
Matt Levine has covered this deli as well: https://www.bloomberg.com/opinion/articles/2021-04-19/everyone-loves-the-100-million-new-jersey-deli-except-david-einhorn-knottrmb https://www.bloomberg.com/opinion/articles/2021-04-19/everyo... https://www.bloomberg.com/opinion/articles/2021-04-20/hometown-international-new-jersey-deli-is-actually-worth-2-billion https://www.bloomberg.com/opinion/articles/2021-04-20/hometo... https://www.bloomberg.com/opinion/articles/2021-04-30/hometown-international-the-100-million-deli-is-a-weird-spac https://www.bloomberg.com/opinion/articles/2021-04-30/hometo...
Jarwain 5y ago
TLDR: it's a vehicle for companies who want to go public without going through traditional routes like an IPO
rapjr9 5y ago
From the article: "...without having to undergo the regulatory scrutiny that usually precedes an I.P.O." I suspect this could be where a scam is hiding. What is the purpose of the "regulatory scrutiny" that these SPAC's are bypassing? Why do they want to bypass it? Seems like it is more than a hatred of paperwork and wanting to reduce costs and more likely the scrutiny being bypassed is meant as a check on illegal behavior. Anyone know more about what that regulatory scrutiny involves?
- Analemma_ 5y ago
  The WeWork scam imploded when they had to file an S-1 which detailed that it was a totally unsustainable business, led by a maniac to boot. The regulatory requirements forced reality to pierce the hype bubble. Successive WeWorks running the same scam want to avoid that.
  - rapjr9 5y ago
    From: https://sec.report/Form/S-1 https://sec.report/Form/S-1 "SEC Form S-1 is a registration filing form for companies to complete registration of securities offering under the Securities Act of 1933 [pdf] (see also, 15 USC Ch. 2A, Part 77. This act, also known as the Truth in Securites Act was inacted to bring greater transparency to securities. Through form S-1, companies offering securites are required to disclose a description of the company’s properties and business; a description of the security being offered; information about management running the company and financial statements that have been certified by independent accountants." I would guess that the "certified by independent accountants" part is what would cause scammers problems. So how many decades will it take the USA government to close this SPAC loophole? Our government is so slow! (but it has a long memory, and judging by the above it can't spell).

16 points by jbegley 5y ago

Matt Levine has covered this deli as well: https://www.bloomberg.com/opinion/articles/2021-04-19/everyone-loves-the-100-million-new-jersey-deli-except-david-einhorn-knottrmb https://www.bloomberg.com/opinion/articles/2021-04-19/everyo... https://www.bloomberg.com/opinion/articles/2021-04-20/hometown-international-new-jersey-deli-is-actually-worth-2-billion https://www.bloomberg.com/opinion/articles/2021-04-20/hometo... https://www.bloomberg.com/opinion/articles/2021-04-30/hometown-international-the-100-million-deli-is-a-weird-spac https://www.bloomberg.com/opinion/articles/2021-04-30/hometo...

Jarwain 5y ago

TLDR: it's a vehicle for companies who want to go public without going through traditional routes like an IPO

rapjr9 5y ago

From the article: "...without having to undergo the regulatory scrutiny that usually precedes an I.P.O." I suspect this could be where a scam is hiding. What is the purpose of the "regulatory scrutiny" that these SPAC's are bypassing? Why do they want to bypass it? Seems like it is more than a hatred of paperwork and wanting to reduce costs and more likely the scrutiny being bypassed is meant as a check on illegal behavior. Anyone know more about what that regulatory scrutiny involves?

Analemma_ 5y ago
The WeWork scam imploded when they had to file an S-1 which detailed that it was a totally unsustainable business, led by a maniac to boot. The regulatory requirements forced reality to pierce the hype bubble. Successive WeWorks running the same scam want to avoid that.
- rapjr9 5y ago
  From: https://sec.report/Form/S-1 https://sec.report/Form/S-1 "SEC Form S-1 is a registration filing form for companies to complete registration of securities offering under the Securities Act of 1933 [pdf] (see also, 15 USC Ch. 2A, Part 77. This act, also known as the Truth in Securites Act was inacted to bring greater transparency to securities. Through form S-1, companies offering securites are required to disclose a description of the company’s properties and business; a description of the security being offered; information about management running the company and financial statements that have been certified by independent accountants." I would guess that the "certified by independent accountants" part is what would cause scammers problems. So how many decades will it take the USA government to close this SPAC loophole? Our government is so slow! (but it has a long memory, and judging by the above it can't spell).