Take physic, pomp

Jemi Fibre (JFI.v): Balance sheet concerto in Bobby G minor for violin

Bobby Genovese’s latest scam’s been fiddling its books. Here’s the originally filed balance sheet for Jemi Fibre (JFI.v) for the quarter ended October 2014:

And here’s the amended filing for the same quarter that was re-filed at SEDAR last Friday:

Oh we love this one, Bobby.

And how, you ask, did the re-filed balance sheet manage to move from negative to positive equity? Simple, all it did was to assign a new value to its newly purchased assets, namely WoodEx Industries, Kootenay Wood Preservers (KWP), and Prairie Holdings Inc (PHI). And to make the transaction nice and clear, we’re going to do it by bullet point:

  • When JFI.v bought WoodEx, KWP and PHI it paid the vendors in shares of JFI.v
  • It paid 12m shares for the three properties, to be exact.
  • Those shares were valued at $2.25m
  • It just so happens that two of the directors of JFI.v are Mike Jenks and Georgina Martin, who also happen to be 50% owners of the three properties sold to JFI.v (WoodEx, KWP, PHI)
  • The transaction happened on June 5th 2014
  • Then suddenly, just four and a half months later, in a re-filing of its company quarterly financials, the three properties bought with $2.25m worth of shares have boosted JFI’s asset value by over $14m.

The magic of accountancy.

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