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Re: Pugilista post# 76805

Saturday, 10/08/2016 9:51:41 AM

Saturday, October 08, 2016 9:51:41 AM

Post# of 100754
How do I know how long deals like this take? Yes, I have worked on more complex deals than this one. I've done them in one day, two days tops if I can't reach everyone day one. I've never, ever had something take more than 3-4 days even with 7-8 parties involved.

Let me state that I hope I am WRONG WRONG WRONG about this entire post. I hope the Li Group pours millions of dollars into RMHB.

But nothing indicates that is happening.

Moving on....

The dollar amount doesn't make it complex. All the variables are what determines the complexity level and this one isn't that complex.

I've written more complex LOIs, purchase offers, and negotiated deals with more parties involved in less than 5 weeks (Sept. 2 to now) with far larger dollar amounts.

I will admit, Jerry isn't the slickest businessman so I'll say a 1-2 day deal might take him a week.

Let's go with what you wrote, that you will go on what the company has done in the past.....

RMHB does PRs for any little step they take (it's a chance for Jerry to dump shares) so for him to not say a peep about this deal all week after all the pumping of this LOI is out of the ordinary even for him (again, using your logic).

So, this means there is no deal. Why would he pass up a PR and more money in his pocket from the dumping?

Also, why would he hide the biggest event to happen to this company? Check his history. He's no stranger to LOIs that come and go poof!

At the very least...he would have issued a PR after the LOI expired with the current status of the negotiations. But absolutely nothing.

It's dead. It was the last chance to keep this company from heading down the bankruptcy path. They cannot pay out more than they take in for sales forever. There is no big box deal. The 7-11 test is stuck in neutral. That 10-K was awful!

So, with your wording, there is nothing they have done to show there is a deal when they usually would do something for far smaller events.

Additionally, why would this Li group pay $3.5 million to buy $20 million in debt and only $89,000 a month in gross sales minus cost of sales (at 105%) and do the math, you have a company that loses less money if they just closed the doors and sold nothing.

There is only one way any group buys RMHB at this stage. They buy it for the least amount possible, get the formulas and all the IP, then send it into bankruptcy. They erase the debt and shareholder equity and start over from scratch with zero debt or shareholders.

If I consulted them on this deal, that is how I would advise them. Plus they get rid of upper management's crazy compensations too. They would all get terminated once the transition was complete.

All the numbers above I took from the 10-K.

Truth in Numbers! They don't lie.

Ok. Deals like this are complex and take a while. How do you know how long something like this takes? Are you saying the Li group doesn't exist or the deal won't go thru? I say it will based on what I have seen Rmhb brands do in the past.