Recently, the name Northsight Capital (OTCPK:NCAP) crossed my desk. While I normally won’t commit time to review such a small company, this one caused me to pause. Mostly because of the spiderweb of this company’s filings, and a good reminder for investors to stop and read these filings before ever committing any money — even if the shares are priced at less than 10 cents.
First, a brief description of Northsight Capital. It’s a media company that owns 7,500 domain names centered on the cannabis industry. The main platform is called The Marijuana Marketing Network and its biggest concept is WeedDepot.com. Other names include 420Careers and RateMyStrain for a total of nine launched websites. In summary, the company has lost $20 million to date and is in a legal battle with its former investor, all while paying itself thousands of dollars. There’s only $199 in cash in the bank, and there is only an interim CEO.
In an all-stock transaction in May, the company acquired Crush Mobile Apps, whose CEO Sonya Kreizman was listed as taking over as the interim CEO. However, on the OTC Markets website, John Hollister is listed as the interim CEO. The company didn’t respond to a request to clarify who is the acting ,CEO among other questions. The Crush deal, though, is contingent on them raising $500,000 prior to the closing, and that looks unlikely.
The original company, Kuboo — also known as Safe Communications, also known as Suggestion Box, Inc. (OTCPK:SGTB) — bought the domain names from Kae Yong Park, wife of Kuboo’s founder Howard Baer, with a promissory note of $500,000. She is a majority shareholder. Kuboo owns 80% of NCAP. John Venners is the president and CEO of Kuboo. As of March, Park’s husband Howard Baer has received $315,500 in consulting fees,