This post first appeared on Micro Cap Daily
Discovery Gold Corp (OTCMKTS: DCGD) has seen a spectacular rise in recent days from a start point of $0.0016 to recent highs of $0.1293. DCGD has quickly attracted a large fast growing shareholder base that transformed this one into a volume leader.
DCGD is a reverse merger play which have a long history as some of the most explosive situations in small caps. Incorporated in Nevada in 2010 as Norman Cay Development, Inc. this is a clean shell with no debt on the books.
Discovery Gold Corp (OTCMKTS: DCGD) bills itself as a publicly quoted shell company seeking to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders.
On July 1 DCGD issued an 8k stating:
“(a) On June 20, 2019, GRN Funds, LLC, a Washington limited liability company, and its manager and Chief Executive Officer, Justin Costello, purchased a total of 139 million shares of the Registrant’s common stock representing 55.65% of this issued and outstanding shares, in a private transaction with Stephen Flechner and David Cutler. As a result of the closing of the transaction on June 25, 2019, GRN Funds, LLC and Mr. Costello acquired a majority of the issued shares eligible to vote. The total purchase price of $300,000 was paid in cash by GRN Funds, LLC. As a condition to the closing of the transaction, the Registrant’s Directors Mr. Stephen Flechner and Mr. Ralph Shearing resigned, and Mr. Flechner resigned as Chief Executive Officer and President, and Mr. Justin Costello was concurrently named Director of the Registrant, President and Chief Executive Officer. The Registrant is a business combination related shell company, as that terms is defined in Rule 12b-2 under the Exchange Act.
The 8k went on to state that all previous management had resigned and Justin Costello was appointed as President and Chief Executive Officer. Mr. Costello is a graduate of the University of Minnesota in Public Business Administration and a graduate of the Harvard Business School. Mr. Costello manages and is the Chief Executive Officer of GRN Funds, LLC, a private equity and hedge fund.
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According to his Linkedin page Justin Costello, age 37, is the CEO and Chairman of GRN Funds, private equity and hedge fund investor. Mr. Costello is CEO of Pacific Merchant Processing, Inc. (PMP), that handles financial transactions for high risk industries. Mr. Costello also serves as council member of the Gerson Lehrman Group (GLG) in its industrial and trade division. He has consulted clients such as Goldman Sachs, Boston Consulting Group, Bain Capital, Caterpillar, Pepsi-Co, Bosch, Samsung, Phillips, and numerous global companies and investment banks.
Previously he served as CEO of Spectrum Energy, Inc., an energy contracting firm and partner in Spectrum Holdings LTD. Mr. Costello is the past President at Fastenal Europe, The Netherlands (a subsidiary of Fastenal USA). Fastenal is an industrial and building materials company servicing the Middle East and European Union with clients such as The Department of Defense, Halliburton, Bechtel, Raytheon along with military and non-military global companies. Mr. Costello is a specialist in international supply chain management design and trade. He has a solid background in logistical design for construction and industrial products and has experience in successfully setting up supply chains in The European Union, Dubai, UAE, Oman, and Saudi Arabia. He has extensive experience in international markets and traveled to Asia, Russia, The Middle East, and Europe. Mr. Costello has assisted in M&A for private equity companies and LBO firms. He specialized in the underwriting process of materials and supply chain for raw and finished materials in the industrial’s section. Mr. Costello also has assisted companies in the procurement and logistics for international and global shipping (LTL, maritime, air freight). Mr. Costello resides in the Seattle Washington area.
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Currently trading at a $19 million market valuation DCGD is a clean shell with no debt on the books which puts it miles ahead of most that trade on this exchange. Reverse merger plays have a long history as some of the most explosive situations in small caps and DCGD has been no exception. while nobody knows for sure it certainly looks as if DCGD will be entering the cannabis business; the new address for DCGD listed on OTCMarkets belongs to Tad Mailander’s law firm Cultiva Law which represents Cannabis Strategic Ventures and American Cannabis Co., Inc and new CEO Justin Costello is linked to over 20 cannabis companies. We will be updating on DSGD when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with DSGD.
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Disclosure: we hold no position in DSGD either long or short and we have not been compensated for this article.
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This post first appeared on Micro Cap Daily