Jammin Java Corp (JAMN)

[Brophtron]

They can't afford any more loans! Did you look at the last quarterly statement? Their gross profit was about $1 million; and the amount they owed for interest for $500K. They cannot afford any more debt - they can't afford the interest that they're paying now, let alone any new debt.

And equity? That's not going to work either.

1) Anyone giving them money for equity is just going to have the money go to pay off the debt they have; it won't grow the company.

2) The stock price is 1/4 of what MP paid. Let's say that a new company gives them $2.5 million (which is a lot less than what they need). That means that the new company would own 4 times what MP has; MP is the company that spearheaded distribution and gave them RealCups and EcoCups; how do you think MP is going to feel like that, especially since JAMN is already 4 months behind on their payables to MP?

3) JAMN doesn't want anyone owning more than 10% of the company; 10% is $1 million; they need a lot more than that in order to continue operations.

4) The Marley name is the draw; Rohan has now left the company and they have a chance of losing the licensed name in a matter of 6 months. Without the Marley Coffee name, this company literally has nothing.