The $100 million company that owns only a single New Jersey deli was delisted from the OTCQB over-the counter market “for not complying with the rules” and slapped with a warning label for would-be buyers on Wednesday night, the CEO of the company that operates that market said in a tweet.
The action came six days after the deli owner, Hometown International, was flagged as a warning to retail stock customers in a client letter by hedge fund manager David Einhorn.
Hometown International’s stock has soared over the past year, giving it a market capitalization of a $100 million or more — despite sales at its Paulsboro, N.J., deli of only about $35,000 combined in the past two years.
The stock, which had traded as low as $4.75 per share last year, closed Wednesday on the OTCQB market at $13.07 per share, up 2.51% from the prior day.
Since Einhorn’s letter was issued, CNBC has reported that multiple people connected to Hometown International or related entities have faced regulatory sanctions, legal issues and criminal prosecutions.