Marani Brands Inc. (MRIB)

[Matthew Berg]

Spec, it's all in the reports. All you have to do is look at the annual and it's all there. Whether they are getting new money or paying down old money for new stock MRIB is diluting shareholders and the deals they're doing looking at the reports are not good ones especially for shareholders given the nature of the convertible agreements. The fact is they've issued new shares in the amount of what is getting very close to 100% of the total outstand shares at just over a year ago for cash and/or to reduce debt. That's dilution. And I'll reiterate, it doesn't matter whether it's cash or debt reduction, it's financing any way you cut it. I think you may not view debt reduction as financing but there's no difference in taking cash to pay down debt versus a straight cash deal. Both are positive on the balance sheet and negative on the SS.

What's worse is how bad the deals are for MRIB as they are heavily discounted in favor of the debt holder and/or cash lender. It's a vicious cycle but with no credit, not a bank in the world that would lend them a dime, default on a million dollar line and current financials they either must cut costs dramatically, increase sales and get their house in order which they are doing a terrible job at. Their only choice is to turn to "evil" lenders and outrageously expensive investment dollars.