Kona Gold Beverage Inc (KGKG)

[hbhmb]

needless to say many, many companies have missed their forecast
as you know it is just that a forecast.. Amazon FB and lot of others missed it beause the fiscal scentary changed. However , to me , as you pointed out a 100% increase in this enviroment is pretty spectacular and i am guessing that does not include
what was just sold to Wal-mart so i am expecting ( and hoping ) the next quarter will look really good. lI mean 100% increase, outstanding

[justhefax]

The current filing indicated a top in range of 1/1500.

The co would not go to all trouble of RS for a flip. More protection on their end. This , if occurs, will simply be to allow the co to fund itself.

Imho

[cuggegrosse]

Sorry to say but this company is all done,sell and save whatever u can,,,mho

[TucsonPhil]

I believe the RS split ratio will be closer to 2500:1, so that they can place the opening price farther above the minimum delisting threshold. Insiders will sell on any subsequent spike after listing on NASDAQ, and bagholders will be left with shares that would continue to drift lower, until delisting or another RS.

[justhefax]

I am suggesting that the company is now funded by shares as it has no earnings.

If they do a 1500/1 two likely follow ups.

The $5.x price will drop immediately and they will issue more shares immediately to continue to fund operations …. Dilute from a new starting point

To cover personal hits mgt can issue itself more shares at any time

That said I think there may be other angles with respect to Gold Leaf which itself may be close to profitable and mergers

But the last Q was a big negative - way way off annual targets. So they will need $
In 2023

All my opinion only

[TucsonPhil]

So, are you saying that the 650M shares that RC is owed will not RS and become a mere 650M/1500 = 433,333 shares @ the new price of approximately 0.0036 x 1500 = $5 40 each, for a value of 2,339,998?

[justhefax]

No one is going to buy this as is. Mgt will not sell in this structure.

A RS resets the value landscape and leverage. The terms now have 1500 to 1 as upper end. They do this and then begin to dilute again with better profile and current holders shares become mostly worthless but new buyers and mgt who are able to convert at protected ratios do well.

This is an insiders game at this point.

[TucsonPhil]

The market is doing it's job and valuing the company accordingly. The debt and dilution is driving this into the ground and all of those employee owned shares will be just as worthless. The best bet, is for them to find a buyer that can actually deliver on all of the promises that have been made.

The only hope for current shareholders would be any spike that could happen on a potential buyout.

I have no insider information or knowledge of any potential buyout. Just speculating on my exit strategy. GLTA

[justhefax]

Despite skating the law on disclosures he is likely within ‘legal’ boundaries with disclaimers etc.

My sense is the rs, merge or sale , or a combination will be coming down the pike.

Of course the spread between .0038 and .008 is a double lol.

[TucsonPhil]

Will probably require a forensic accountant to understand the answer to that question.

[Luho]

Robert Clark running this into the ground. Curious what his benefit was. Cause he definitely put out misleading PRs and tweets over the years

[TucsonPhil]

Looks like SEC and FINRA are actually starting to do their jobs, when it comes to protecting investors from IPOs with pump and dump schemes. Might not be the best time to move to the NASDAQ.

Maybe the Republicans can make them back down, with some funding cuts to hamper their efforts.

[TucsonPhil]

So it would seem.

[justhefax]

Pretty outrageous to file a Q w/o any news release or mgt comment and guidance.

Pretty much demonstrates that the co is walking away from current holders .

[Fares]

200 to unch. No kidding. Tell me something I didn't know.

Fortune favors the bold.

KGKG

[Fares]

KGKG - Inflection point nearing.

Fortune favors the bold.

KGKG

[doorcounty]

Could Kona Gold have their new designed cans ready by years end in 5 flavors? Is "Classic" still one of them? Even though I stocked up (eight cases), it's still good to hear the best might be available. Kona Gold Beverage Inc. home base in Florida was not at all affected by Hurricanes Ian & Nicole. I was happy to add a bunch of shares under 4 tenths cent Monday. KGKG is so thin on level two right now; less than only 1.5 million on Asked to the Two cent Asked price. Gettin' a draw down at 5 & 15 cents. Wish everyone well. Last thought: only 5 weeks until the day's daylight starts to get longer!

[justhefax]

Based on the last Q drop seems we are at 9 Mo of 3.3 mm.

Share count doubled year to year

3m to 3 m is good at a 100% increase but looks like will be a huge miss on year forecast. Maybe 5 mm rather than the 8-10 mm forecast

Rs is in the cards. Unless merge or real mega $$ deal the share count will hit its limit in the coming months

[Luho]

I’m a huge fan of using /s to imply the sarcasm font. Glad to see I’m not alone

[TucsonPhil]

He may need to run the newsletter through legal first. /s

[Luho]

Quarterly dropped 2 days ago and not a peep from Robert Clark.

[TucsonPhil]

I keep waiting for a newsletter that uses the word, "Earnings", instead of, "Revenue".

Will we ever see such a letter?

[TucsonPhil]

Time to spin up LBEV and work with Outlaw to bring those alcoholic lemonades into the mix.

That should be worth a few $million in new shares for that company to start up.

Too many people catching onto the KGKG game.

Rinse and repeat!

[TucsonPhil]

More bids below .004, so looks like downshifting.

[Luho]

What shift???

[cuggegrosse]

KGKG HAS AWFUL COMPANY'S MGMT SKILLS, NO EARNINGS AND NO TRANSPARENCY AT ALL

[Fares]

I expect MM-ASCM will present itself en route to copper.

Fortune favors the bold.

KGKG

[Fares]

KGKG - L2 shift. This should break the penny mark by Christmas. Enjoy.

Fortune favors the bold.

KGKG

[Luho]

I don’t think RC has the passion any longer. Simply aren’t getting updates like we used to. And the once monthly update we do get seems to be follow up on something previous that got delayed, or a summary of previous month’s sales.

There were the couple that stated we hired new people to expand regional sales; but these are regions that we should have had covered 2-3 years ago when RC pushed going national.

Took a huge step back over the last few years.. And I don’t think it was cause of Covid. Appears to be more likely due to executive decisions within the company.

[TucsonPhil]

Warrant holders and day traders are the only ones making money on this stock. It will continue to meander down, until the company can show a profit.

All of these fluffy news articles about new distributors and big deals that never materialize, seem to allow shares received at discount to be sold for a huge profit, while shareholders trading in the market get further destroyed.

I have seen the cheerleaders on multiple websites saying we all just need to be patient. I do not believe that the company will receive additional financing, without giving away more warrants near the .002 level, causing the future dilution to drive existing sp down more.

[justhefax]

The point is successful for who?

I can see the company do well for itself and insiders who are issued shares, at the same time being a lousy investment for retail investors.

For those who held for the last 3 years have seen their share value destroyed with dilution now making recovery difficult .

The pending RS with no comment looms over any shares purchased now.

[PickItToWin]

Yes, and according to this RC holds 17,100,000 common shares, roughly $68k at todays price. The other common shares haven’t been issued.

I believe your theory of RC taking money from the Co and selling millions of shares holds no water.

Let me know if there’s anything else you need me to explain to you, happy to help

[PickItToWin]

I agree. They could do a much better job communicating to shareholders, can be frustrating at times.

I believe the Co will be successful in the long run, but how they plan to get there needs to be communicated to shareholders.

[TucsonPhil]

Initial beneficial ownership. Access to shares, does not necessarily mean they have been issued.

https://www.sec.gov/Archives/edgar/data/1802546/000173112221000445/xslF345X02/ownership.xml

There are no updated forms showing shares issued, but there are also no forms showing the large beneficial ownership stake controlled by YA II PN Ltd either. I question the validity of their reporting in this area.

[PickItToWin]

Again, you need to read the Q’s before you post false information, so you should really stop it.

Straight from the 10Q, the Co owes RC almost 170 million shares because he returned almost all his common stock.

They have to report if he converts shares, and I can’t recall when he’s ever done that.

Not sticking up for the guy, but man, you need to stop posting false information

[justhefax]

I agree RC is motivated to succeed and has grown the operation over time with good products.

The issue is simply the damage to and case for retail investors. Dilution is exceeding the growth is and has been a huge drag on the company.

The company has not updated its annual forecast and appears to be a substantial miss. ( forecast 8-10mm likely 6-7).
It is clear there is non retail selling/trading at these very low levels. There is limited AS to draw upon into 2023 so the RS is on the table.

The company does not respond to investor diligence questions. Does not have a shareholder value proposition presentation.

I am looking forward to seeing the next steps but as noted this is all blind right now.

[TucsonPhil]

Thank you. I stand corrected. RC has loaned the company money with interest payable at less than 4%.

Given that he has access to 650M shares, it is no wonder where the money came from. Just accounting games. 1) Get free shares 2) sell them for cash 3) loan cash to company with interest.

[PickItToWin]

You peaked my interest, so I went through the whole doc. You need to learn how to read a 10Q. Under Notes Payable, RC has GIVEN the company a line of credit and put in almost $2m to f his own money.

You should understand what your reading prior to posting false information, that’s dangerous.

With that said, I don’t think there’s that many CEOs that would fund the company they run if they didn’t believe in it succeeding, IMHO.

[TucsonPhil]

I am saying he has borrowed millions from the company. Where that money has gone is anybody's guess.

I contend, that money has ultimately come from investors, who have been robbed over the years.

[PickItToWin]

I didn’t get that far yet, but you’re saying RC put in millions of his own money?

[PickItToWin]

Revenue more than double compared to same quarter last year and expenses went up nominally, good to see.

Gross margin went up from 19% to 22% compared to same quarter last year as well. That’s a good sign.

Numbers are definitely on the right track. I was hoping to see a bigger pop in revenue, but not bad overall.

[TucsonPhil]

Just skip straight to the "Debts" section and the associated exhibits.

More shares issues, unsecured loans for millions to RC at under 4% interest.

Warrants sold at unreasonably low cost.

Watch the stock price dip to .003 or lower tomorrow morning.

[Duster2]

10Q Out

[TucsonPhil]

The funny thing is that LBEV, listed as a shell company with no assets, or revenue, has a share price 12x higher than Kona. LMFAO

[TucsonPhil]

RC has an interest in Loud Beverage (LBEV), which is listed as a shell company. Maybe they will IPO that, and SPAC merge with Kona.

Of course that would violate the principle that the SPAC does not know what company it will merge with, before the IPO.

Aw heck, it is a penny stock. SEC would probably overlook such a violation.

[SubPenny0001]

It hard to believe Kona Gold (KGKG) Has the proper requirements to do a IPO unless they get help by doing a SPAC Merge .
Kona Gold can not meet the Requirements for the NASDAQ... they are Dreaming!

KGKG will do some type of SPAC Merge to uplist.
More than 90 percent of recent SPACs have successfully consummated mergers,
SPAC stands for Special Purpose Acquisitions Company and is essentially a shell company with the sole purpose of raising money through an IPO to eventually acquire another company.
Founders or Sponsors have a period of time to find a suitable acquisition or the money would otherwise be returned to investors.
Since investors don’t know in advance what target company will be acquired, SPACs are colloquially known as “blank-check” companies

If the SPAC is successful in acquiring a target company, the founders will profit from their stake in the new company, usually 20% of the common stock, while the investors receive an equity position according to their capital contribution

[TucsonPhil]

The S-1/A does discuss the reverse split, but does not have the ratio defined yet.

[Cabocat]

Thank you, I could have swore I read it in some type of news release but maybe I'm wrong

[TucsonPhil]

They want to go to the NASDAQ. The NASDAQ has a minimum bid requirement for shares (look it up).

In order to meet that minimum bid price, will they RS, or will they just pay out existing shareholders and IPO on new exchange to get the $14M they are after?

To pay out shareholders, they would need an underwriter for about $7M, so maybe.

Maybe just read the draft S-1/A posted at the SEC website:

https://www.sec.gov/edgar/browse/?CIK=1802546&owner=exclude

[Cabocat]

Does anybody have an article where it says they're going to do a reverse Stock split?