Shane Whittle: Canadian Rude Boy? (JAMN, BGBR, etc.)

Jammin Java Corp (JAMN):

Market Cap as of May 2, 2011:       207mm
Last 12 months sales:               0
Sales since inception:              0
Cash as of last filing:             0

So what does a member of the Marley family, a notorious Canadian stock promoter, a company that is little more than a shell, a late 10K, and a string of unusual transactions all have in common? Jammin Java (JAMN), which closed today at $3.00.

JAMN has been an amazingly popular stock recently, having zoomed from 10c in June of 2010 to today’s $3.00. But what has really changed from when it was an overpriced piece of reverse merger junk at only 10c?

JAMN started life in 2004 as a Nevada based shell called Global Electronic Recovery Corp (GERV). In February 2008 the GERV shell merged with a private company called Marley Coffee, Inc. to become Marley Coffee and the ticker was changed to MYCF. From the moment of the merger until the last reported quarter total revenues have been an astonishing zero. In September 2009 the name of the company changed yet again to Jammin Java (JAMN). Signing the merger forms submitted to the State of Nevada to create this monstrosity was Canadian stock promoter Shane Whittle.

Shane is probably best known as one of the prime movers behind Big Bear Mining (BGBR). Big Bear, which had been virtually dormant since first gaining a listing in 2006, had a stunning rise, quite reminiscent of JAMN, in late April and early May of last year. BGBR went from 3/10ths of a cent (yes, .003) in February, 2010 to $1.75 at its peak in early April, 2010. BGBR shares trade for a whopping $0.075 today.

Read more about Big Bear in the these pieces by Melissa Davis here, here, and here. Read more about Shane in this great piece by David Baines, here. In addition to being a Marley fan, Shane might also be a fan of 80s hair metal act White Lion. When not busy as the CEO of JAMN he runs a Vancouver outfit called White Lion Capital.

As Davis and Baines point out, JAMN shares more than just Shane with BGBR. Both firms are run out of offices in Los Angeles, and both have the same auditor, LBB & Associates, LLP. LBB is not ashamed to trumpet its speciality in Reverse Mergers right on its home page. Another Shane venture, the now delisted, Southern California based, Interactive Television Networks (ITTV) also used LBB & AssociatesHere is what the PCAOB had to say about LBB during a routine inspection. Perhaps the most interesting part of the report is this tidbit:

The inspection team identified what it considered to be audit deficiencies. The deficiencies identified in one of the audits reviewed included a deficiency of such significance that it appeared to the inspection team that the Firm did not obtain sufficient competent evidential matter to support its opinion on the issuer’s financial statements. That deficiency was the failure to perform sufficient procedures to determine the appropriateness of an issuer’s accounting for a participation right granted to a lender in a financing arrangement.

Shane is also on the board of Canadian shell Big North Capital, Inc. (NRT/P) which, at a recent 12c per share, sports  a mighty market cap of just about $500k Canadian.

Though no longer an officer nor on the board of Global Industries (GBLS), a Wilshire Blvd, LA based 30c pink sheet special, Shane holds 23.2% of the shares. Jack and Helen Whittle of North Vancouver, BC, presumably Shane’s parents, hold an additional 11%. GBLS‘s auditor? You guessed it, LBB & Associates.

The Whittle family, including Nicole Whittle, all show up as selling shareholders in Black Hawk Explorations (BHWX) SB-2 from 2006. BHWX, another LA based pink sheet piece of junk, now trades for 9c a share. With a market cap under $6mm, what firm could you get to audit such a fine company like BHWX? Assuming J Crane & Co. was too busy, why LBB & Associates of course.

Another time we can dive further into the ridiculousness of the JAMN promotion, and explore the common lawyer and transfer agent used by the Whittle stable of firms, but for now, it is safe to say that not only is coffee not generally considered ITAL by strict Rastafari, but JAMN shares sure don’t seem IRIE.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

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