Barry Sherman’s son raised concerns about Apotex founder’s investment strategy and business competence: Sources | The Star
By
Kevin DonovanChief Investigative Reporter
June 27, 2019
''You were also my business partner,” Jonathon told 7,000 mourners
at the memorial service. “When I entered your office about five or six years ago with my good friend Adam we told you about our plan to start a business together and you were so incredibly supportive and excited. We had the world’s shortest shareholder agreement which basically said, anything, anytime.”
The “Adam” Jonathon referred to is Adam Paulin, a graduate of the Richard Ivey School of Business. The two have been friends since meeting one summer at Camp Winnebagoe. Together, they set up Green Storage in 2014. It is a company that provides self storage lockers in a growing number of sites in the GTA and surrounding towns.
Paulin has not responded to the Star’s request for an interview.''
''By the spring of 2015, according to provincial land title documents, Green Storage had a total of $71 million in loans registered against its properties from a company called Hour Holdings, which used Apotex as its mailing address. The directors of Hour Holdings and the related Hour Investments are Jonathon Sherman and Adam Paulin. Green Storage directors are Sherman and Paulin as well.
Sherman insiders with knowledge of these financial matters say that Hour Holdings was funded by Barry Sherman.
At the same time as the mortgages were registered against Green Storage, it made purchases of existing self storage businesses in Ajax, Newmarket, Aurora and Bolton. According to land title documents, the storage businesses they purchased cost, in total, $22 million. The Star could not determine the extent and cost of the renovations as Green Storage is a private company with no requirement to release information to the public.
The smallest loan to Green Storage from Hour Holdings was in August, 2014, to purchase a small boat storage facility in Apsley, Ontario, north of Peterborough and near a marina and cottage property Jonathon purchased the year before through a holding company he and business partner Paulin own. Land title records show a loan of $500,000 from the Sherman-related company and a purchase of $234,500 for the storage site in Apsley.''
The year 2015 was a difficult financial stretch for Barry Sherman. He confided to close friends and executives at the privately held Apotex that “cash was tight.”