June 29, 2022

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New Jersey deli owner Hometown International to do Makamer merger

2 min read

Your Hometown Deli in Paulsboro, N.J.

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Hometown International — that odd, publicly traded company with a market capitalization of more than $100 million despite owning just one small New Jersey deli — has announced plans to merge with Makamer, a private bioplastics start-up firm.

The money-losing Your Hometown Deli in Paulsboro, N.J., which is owned by Hometown International, will not be operated by the company that will result from the merger with the Los Angeles-based Makamer.

But a woman who answered the phone at the deli on Friday said, “We’re still going to be open” after the merger is completed.

The announcement of the tie-up of Makamer and Hometown International comes nearly a year after hedge fund manager David Einhorn in a client letter noted the bizarre disparity between the deli’s extremely modest sales, which were $25,004 for all of 2021, and Hometown’s sky-high stock market valuation.

“The pastrami must be amazing,” Einhorn quipped in the most-quoted line from that April 2021 letter.

On the heels of that letter, CNBC detailed the tangled business relationships and controversial history of a number of people connected to Hometown International, whose CEO at the time was Paul Morina, the high school principal and head wrestling coach in Paulsboro.

Morina, who was removed as CEO in May after those reports, is still listed as owning 31.5 million shares of Hometown International.

In its annual report, filed with the Securities and Exchange Commission on March 18, Hometown International disclosed that “the Company has identified a potential target company and is currently engaged in discussions regarding a possible business combination.”

Makamer CEO talks to CNBC

Alex Mond, the head of Makamer, told CNBC in an interview Friday that he expects the merger with Hometown International, which was disclosed in an SEC filing on the eve of April Fool’s Day, to be completed “in a few weeks.”

After that, Mond said, he plans to soon after transfer what will be…

2022-04-01 19:14:03

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