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Vertical Branding Inc.(fka VBDG)

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Last Post: 6/11/2014 9:58:23 AM - Followers: 64 - Board type: Free - Posts Today: 0

Overview
Vertical Branding sells As Seen On TV products directly to consumers via television advertising, and to distributors via their current partner P2F Holdings.

Products
Extreme Beam Flashlight, Hercules Hook, MyPlace Cozy, Steam Buddy, Tool Band-it, Zorbeez Streak-Freez

Relationship with P2F Holdings
Per contractual agreement [sec.gov/Archives/edgar/data/1125532/000135448809000619/vertical8k.htm], Vertical Branding allows P2F Holdings to distribute their As Seen On TV products to big box retailers in exchange for royalties.  These retailers include Bed Bath & Beyond, Macy's, Staples, CVS, Shopko, Bestbuy, Walmart, TrueValue, Bealls, and Anna's Linens.
  P2F Holdings has assigned Milen, a new division, to manage operations as a result of this agreement.

Websites
Vertical Branding:
www.verticalbranding.com
P2F Holdings:
www.p2fholdings.com
Milen:
www.milenasseenontv.com

Contact Information
Vertical Branding, Inc.
12100 Wilshire Blvd
8th Floor
Los Angeles, CA 90025
Phone:
310.806.9297 [Chris Lipp]
Fax: 818.926.4885
Email:
info@verticalbranding.com

Pressing Issues
On October 14th Vertical Branding filed a Form 8-K [
sec.gov/Archives/edgar/data/1125532/000111650209001567/vert_8k.htm], stating that despite the contract with P2F Holdings, attempts to restructure their debt have failed.  As a result, the company's Board is presently reviewing the company's options for reorganization, recapitalization or other methods of deriving value from the company's assets to satisfy the company's liabilities. Because of its working capital shortage, the company has substantially reduced operating expenses by laying off all but three employees and by suspending various operations.  In addition to this news, Nancy Duitch resigned as CEO and Alan Edrick has resigned as Board Director.  No replacement CEO has been named at this point.

    There are currently 4 foreseen paths for the company
    1. As a result of weak sales, poor management, and current debt liabilities, Vertical Branding will be brought to bankruptcy court by Gottbetter Capital Master Ltd., subsequently resulting in a filing of Chapter 11 and a total loss for all shareholders.
    2. As a result of weak sales, poor management, and current debt liabilities, Gottbetter Capital Master Ltd. will hold the option to purchase 3.615M shares of common stock at the exercise price of $0.025 in order to settle the debted amount of $2.26M.

    The previous 2 scenarios are considered the most likely of the 4.  Unless something changes [see path 3 & 4] it can be assumed that Gottbetter Capital Master Ltd. will review these two options at or around December 15th, 2009, and decide which
    is  in their best interest for recovering the debted amount of $2.26M.

    3. As a result of increased sales, reorganized management, and restructured debt payments, Vertical Branding will provide a corporate update stating their increased growth, financial security, and etc., subsequently resulting in a surge in the price of
        common stock due to restored investor confidence and buying.

    4. As a result of weak sales, poor management, and current debt liabilities, Vertical Branding will be purchased outright by an outside entity at a discounted price per share.

    The previous 2 scenarios are considered the least likely of the 4 and are completely unsubstantiated by hard facts.

    Argument supporting survival scenario [highly speculative]
    Vertical Branding is a very small corporation, especially in light of the announcement that only three employees continue to work from this point forward.  Small corporations are able to continue operations even in the most dire of times.  This hibernative
   
state is generally referred to as survival mode.  The company should be able to make debt payments fairly easily just by running this skeleton crew.  While this does not translate to growth, and could even translate into staleness, it does drastically
    reduce the chances of bankruptcy.  Since Vertical Branding is now, primarily, a research / design / promotion company, the need for a large office space has dwindled.  They may even take up the same roof as Milen, of P2F Holdings, in order to
    consolidate efforts and costs.  Additionally, P2F's vested interest in Vertical Branding is immense.  They are, after all, the reason that P2F is able to stock the shelves of hundreds of big box realtors and keep a majority of the profits.  This parasitic
    relationship may prove fruitful for Vertical Branding in ways yet to be realized.

    Moreover, via direct email correspondence with Milen, it has been learned that Vertical Branding's newest product, [as well as Billy Mays' last pitch for Vertical Branding], the Tool Band-it, will soon be advertised on television in a substantial manner in
    anticipation of the holiday season.  The Tool Band-it was featured on the Discovery Channel who in turn forecast up to $700,000 in sales per week.  A link to this video can be found as follows:

    http://www.youtube.com/watch?v=PGIGX-68Rwg [Tool Band-it specific information begins at 2:25]

Update
The following information has been dug up via some investigating
    1. "P2F is negotiating a price to buy out all of their license agreements from VBI."  [source is Mike Shurm, creator of the Tool Band-it, via contact with VBI]
    2. P2F currently has 400,000 Tool Band-it units in their warehouse, as well as several hundred thousand "on water and order", current price for distributors/retailers is $12.50 [source is Michael Freede, President of P2F]
    3.
P2F has bought out the license agreement already for the Tool Band-it, "so we could control it if we were to spend the money and make the commitment while they were in financial trouble" [source is Michael Freede, President of P2F]
    4. P2F has started a 60 day national television commercial campaign, priced at $500,000, for the Tool Band-it [source is Michael Freede, President of P2F]
The following questions remain
    1. When is VBI planning on informing shareholders of this vital information?
    2. What are the details of the sale of the license agreements? [flat fee, continued royalties for both direct sales and retail/distributor sales, etc.]

 

Please Note: some portions of the information found in this iBox are speculative in nature.  Please follow your own due diligence and make decisions based only on your own deductions.  Board moderator and assistants are in no way responsible for losses due to trading based on the aforementioned information.

 

 

PostSubject
#8097   VDBG revoked: Renee 06/11/14 09:58:23 AM
#8096   Latest from the SEC: sidedraft 04/28/14 12:33:49 PM
#8095   VBDG SEC Suspension: Renee 03/27/14 09:36:05 AM
#8094   trading today. does this periodically. Sighwyna 05/02/13 01:57:10 PM
#8093   Market Cap $11,610 according to Google anyone know make it happen 01/26/13 10:13:49 AM
#8092   Vertical Branding, Inc. (VBI), formerly MFC Development Corp., make it happen 01/26/13 10:11:08 AM
#8091   i guess we ran out of steam Sighwyna 12/28/11 02:07:56 PM
#8090   It seems to me that something is definitely Weebro 12/27/11 01:10:38 PM
#8089   what does this mean? Sighwyna 12/27/11 01:07:12 PM
#8088   Website Domain has been updated/accessed recently. Weebro 12/27/11 12:48:15 PM
#8087   only 30MM shares outstanding if they do do Sighwyna 12/27/11 10:24:05 AM
#8086   TECHNICAL BREAKOUT ALL AROUND...LOOKS LIKE A R/M IS onetimepleasegoupppp 12/27/11 08:16:52 AM
#8085   What's up with one demonsmith 12/27/11 12:28:04 AM
#8084   Huge Upswing to Pennies for VBDG this week halbroke1 12/26/11 11:37:54 PM
#8083   LOOKING LIKE THINGS ARE ABOUT TO GO HERE...BIG onetimepleasegoupppp 12/26/11 11:01:18 PM
#8082   somethings up Sighwyna 12/23/11 12:09:50 PM
#8081   bot this soo long ago just to take Sighwyna 12/22/11 10:48:52 AM
#8080   Somethings up... Fishin' Canuck 12/22/11 10:44:21 AM
#8079   signs of life? Sighwyna 12/22/11 10:42:43 AM
#8078   Future Hearings sean41966 11/25/10 10:43:00 PM
#8075   Wow. Did the wakeup alarm finally go off? NotSurprised 04/21/10 09:44:54 PM
#8074   Sold all my shares today- total loss after timhyma 04/21/10 09:41:00 PM
#8073   I have moved on. Class action would be dispoman 04/21/10 01:57:29 PM
#8072   Who cares about a class action? Vertical hingfdiuh 04/21/10 01:32:45 PM
#8071   Wonder if there will be a class action dispoman 04/21/10 01:27:35 PM
#8069   All company assets have been seized by a hingfdiuh 04/15/10 06:43:35 PM
#8068   Nice volume today. Anyone hear anything? Rainer 04/12/10 01:01:12 PM
#8067   Posted by: NotSurprised Date: Wednesday, 3Saints 03/29/10 09:48:59 AM
#8066   Are you suggesting that VBI had employees that hingfdiuh 03/29/10 04:32:02 AM
#8065   Ex-employees. People who showed up daily, doing their NotSurprised 03/29/10 01:37:38 AM
#8064   what employees? hingfdiuh 03/27/10 12:28:59 AM
#8063   Hopefully they'll take care of what they owe NotSurprised 03/25/10 03:52:01 PM
#8062   Mr. ---: hingfdiuh 03/23/10 08:26:42 PM
#8061   I think I'll be using this one as timhyma 03/23/10 06:28:55 AM
#8060   Hmmmm. Looks like we may have found Rainer 03/22/10 09:53:49 PM
#8059   Is it just me or are there many hingfdiuh 03/11/10 10:10:10 PM
#8058   To collect royalties. hingfdiuh 03/09/10 05:13:06 PM
#8057   If you have no product, why do you GWMAN 03/09/10 03:40:33 PM
#8056   So, we have new management. hingfdiuh 03/09/10 12:34:35 PM
#8055   Still annoying to go into the BB&B today GWMAN 03/08/10 07:19:01 PM
#8054   On February 16, 2010, in connection with a timhyma 03/06/10 06:15:59 AM
#8053   Ya? Why don't you fill us in on 'what hingfdiuh 03/06/10 05:25:59 AM
#8052   I get the machine. Don't call me back. P K G 03/06/10 04:09:28 AM
#8051   That's a month old news. Watch what happens now. greenbud 03/05/10 09:53:01 PM
#8050   Hahaha Who's picking up shares at 0.00001 on monday? hingfdiuh 03/05/10 06:24:37 PM
#8049   8-k filed: Pennyfool 03/05/10 04:11:54 PM
#8048   Someone asked this question months ago: NotSurprised 03/05/10 01:11:27 PM
#8047   No, the fact is we don't know the hingfdiuh 03/04/10 06:58:57 PM
#8046   FACT >> Nancy turned out to be worthless...a 3Saints 03/04/10 04:45:20 PM
#8045   1,000,000 to 1 RS comfirmed goose44 03/04/10 03:42:26 PM
PostSubject