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You're welcome confuciussay. I have no idea whether the Harvest Soul chewable juice products will ultimately succeed, but I do believe that announcement(s) of retail distribution will lead to a nice jump in the FPFI share price from the current level.
As always, simply my opinion.
IMO, the terms of this agreement for up to $1.25 million in funding are quite favorable (relatively speaking, as compared to other OTC funding agreements).
For starters, there is only a 15% discount applied to the lowest avg trading day bids (I've seen as much as a 50% discount applied). Secondly, the measurement period for the computation of the avg price is only 7 days (the more days, the worse the agrmt). Thirdly, the period covered is 36 months long. This means that Fresh Promise can wait for the share price to recover, and then 'Put' a whole lot of those recovered-price shares to J.P. Carey Enterprises, with a higher cost basis. Fourthly, it provides for more than $1 million, so it is deep funding.
Additionally, the financing is structured as a 3 year 'put' option. For those who are unfamiliar with how a 'Put' option works, it is the right (but not the obligation) to sell a certain number of shares at a certain price. Since FPFI holds the 'Put' option, all power and timing is with FPFI. They can 'put' none of the shares when the stock price is weakest, and 'put' many shares when the stock price is strong.
For this reason, it is far more favorable than a convertible note, where the share price may be in the dumps just as the note due date is approaching.
While there is still some degree of uncertainty with this specific agreement, because the put share price will be determined by 7 days of trading after notice of the intent to put by FPFI, 7 days of uncertainty is far better than the 6 months to a year of share price uncertainty on a typical convertible note.
As always, simply my opinion.
"Effective September 24, 2014, Fresh Promise Foods, Inc. (the “Company”) entered into an Investment Agreement (the “Investment Agreement”) with J.P. Carey Enterprises, Inc. (“Carey”), whereby the parties also agreed to enter into a registration rights agreement (the “Registration Rights Agreement”). Pursuant to the terms of the Investment Agreement, for a period of thirty-six (36) months commencing on the trading day immediately following date of effectiveness of the Registration Statement (as defined below), Carey shall commit to purchase up to $1,250,000 of the Company’s common stock, par value $0.00001 per share (the “Shares”), pursuant to Puts (as defined below), covering the Registrable Securities (as defined below). The purchase price of the Shares under the Investment Agreement is equal to a fifteen (15%) percent discount to the average of the three lowest closing bids as calculated using the average of the three lowest closing bids during the last seven trading days after the Company delivers to Carey a Put notice in writing requiring Carey to purchase shares of the Company, subject to the terms of the Investment Agreement."
Thanks IcePick06. And you make an excellent point regarding the triggering of cascading stop losses on the way down, amplifying the downward price impact.
For savvy OTC traders/investors, understanding these phenomenon aid in generating profitable trades.
Thanks OptimusPrime.
RE: Shorting on the OTC
For those interested in the most common form of shorting engaged in within the OTC market, here's something I've written and posted previously on other board(s).
Short Interest Unmasked: For those interested in understanding the apparent discrepancy between the bi-weekly FINRA short report and daily share shorting tallies, I'll do my best to explain the difference.
Market makers, operating within their obligation to keep an orderly and liquid market in a stock, often sell shares they do not currently own. Most of those sell transactions will not show up in the bi-weekly FINRA short report because it shows net short positions. Since it is very common for the market makers to buy those shares back later in the same day (to cover the shares that they shorted earlier in the day), short transactions of that type will never appear on a bi-weekly net shares short report (although these shares do show up in the reporting of daily shorting totals).
So if an OTC market maker covers most of their short sales within the same day, why should it even be of a concern to the shareholders of that OTC stock? Here's why. Due to the low level of investor confidence on most OTC companies, a market maker can create the impression of lack-of-demand for a stock by selling short against many of the retail buys as they are coming in at the ask, which keeps the ask from rising. As a result, other retail investors tend to become nervous and some lose confidence in their otherwise long holding, and as a result sell into the bid. It is at this time that the original market makers that sold short at the ask can then cover at the bid. That allows the market makers to make money for their work. But it also generally leads to the stock going lower. But because the short sold shares were covered during the same day, the will have no visibility on a bi-weekly net short report. And IMO, this common MM driven process undoubtedly contributes to the downward slide experienced by many OTC stocks.
As always, simply my opinion.
Hopefully the info above is helpful in shedding some light on the DEWM daily short data below.
DEMW
Thanks.
btw, I have returned the favor.
Updated DD on the Relaxation Beverage Market:
Relaxation in a can: the rise of the anti-energy drink
http://www.goodfood.com.au/good-food/drink/relaxation-in-a-can-the-rise-of-the-antienergy-drink-20141118-11p2go.html
Small excerpt from the article:
'There are drinks that claim to give us energy, improve our health and help us lose weight, and now a growing number of "functional beverages" promise to deliver a dose of tranquillity. Relaxation drinks, also called "anti-energy drinks", contain ingredients associated with stress reduction, such as chamomile, valerian and magnesium.'
US Energy Drinks Report:
http://www.businessinsider.com/relaxation-drinks-popularity-report-2014-9
Small excerpt from the article:
"Sales of relaxation drinks are booming. The drinks, which contain active ingredients like melatonin or l-theanine, have become popular because they are more of a novelty than caffeinated beverages like Monster Energy or Red Bull, according to a recent report by IBISWorld." The article goes on to state that "The relaxation drink industry is currently worth $152.9 million" and that there about 70 million Americans have sleep issues.
Relaxation Drinks - Beverages That Make You Calm
http://www.oprah.com/health/Relaxation-Drinks-Beverages-That-Make-You-Calm/1
Small excerpt from the article:
"Like liquid chill pills, these beverages promise to make you mellower in just a few sips. Three O staffers drank them for two weeks to see if they lived up to the hype."
Competitor establishes that demand for relaxation drinks is growing:
BeBevCo Strikes Gold With Golden Beverage As Perfect Alignment For KOMA Unwind Relaxation Drink
http://www.prnewswire.com/news-releases/bebevco-strikes-gold-with-golden-beverage-as-perfect-alignment-for-koma-unwind-relaxation-drink-619187320.html
Growth in International demand for the sector:
Feel Good Drinks Maker PIPER Mulls Dubai IPO in Growth Push
http://blogs.wsj.com/middleeast/2014/10/20/feel-good-drinks-maker-piper-mulls-dubai-ipo-in-growth-push/
Small excerpt from article:
"The logic behind PIPER’s expansion strategy is simple: the global market for relaxation beverages is booming. According to research firm IBISWorld, the relaxation drink industry is currently worth $152.9 million with more than 450 types of drinks available, a number that could double in the next 10 years."
Wikipedia: Relaxation Drinks
http://en.wikipedia.org/wiki/Relaxation_drink
Small excerpt:
"Relaxation drinks are formulated to help reduce stress, anxiety, improve mind focus, promote better sleep. Relaxation drinks are the anti-energy drink which have spread to the US and have found a niche alongside energy drinks."
DEWM
Thanks GrizzledBear. Still long here, and optimistic that communications with shareholders will now occur with a greater frequency.
Keep hearing on various news outlets that pressure to reform (relax) federal mj regulations are reaching a critical mass. That could be a huge positive catalyst for us (and others in the sector).
As always, simply my opinion.
Here are the steps, UMAC...
From the iHub 'Tools' Menu, select ->More Tools -> My Image Gallery
Then click on the 'Choose File' button
Then Navigate to the image file on your drive and select it
Then Click the 'Upload' button
Once the image is uploaded, right cick on that image and choose 'Copy Image URL'
You can then past that image URL into the iHub message you have created
Once the image URL is within the message body, highlight that URL and click on the 'Image' button to the left.
Industry parallel - Dewmar International vs. Monster Beverage Corp
As many may know, Monster Beverage Corp (in its predecessor form) was at one point nearly worthless and filed for bankruptcy many years ago. After a couple of name changes, and after being acquired, it has not only recovered, but has become a monster (excuse the pun) in the beverage industry, currently valued at about $18 billion (with sales of about $2 billion annually).
While it may seem somewhat absurd to compare a tiny OTC company like Dewmar (DEWM) to an industry giant like Monster Beverage Corp, there is a method to my madness. Many years ago, there was simply no 'energy drink' beverage market. The closest thing that existed were drinks that provided energy due to their high sugar content, or caffeinated drinks such as coffee or tea. But the U.S. energy drink market has now grown to more than $12 billion annually, and is expected to break $20 billion by 2017.
As a complement to the energy drink market, we then had a new category of drink, relaxation beverages, emerge in the 2000s. And with the fast paced world, and recurring headlines regarding global conflict, economic challenges, and disease outbreaks, it is no wonder why such a beverage category would be necessary. And who's to say that the newer relaxation drink market could not grow with a similar trajectory to the energy drink market.
If the demand for relaxation beverages does explode at some point, Dr. Marco Moran (with his background, determination, and contacts) could be perfectly poised to capture a substantial share of that growing market, and potentially produce a stunning chart for DEWM similar to the monster bev chart below.
I suppose that we'll have to stay tuned for updates from Dr. Moran to see how things progress in the coming weeks and months. As always, simply my opinion.
DEWM
Updated DD on the Relaxation Beverage Market:
Relaxation in a can: the rise of the anti-energy drink
http://www.goodfood.com.au/good-food/drink/relaxation-in-a-can-the-rise-of-the-antienergy-drink-20141118-11p2go.html
Small excerpt from the article:
'There are drinks that claim to give us energy, improve our health and help us lose weight, and now a growing number of "functional beverages" promise to deliver a dose of tranquillity. Relaxation drinks, also called "anti-energy drinks", contain ingredients associated with stress reduction, such as chamomile, valerian and magnesium.'
US Energy Drinks Report:
http://www.businessinsider.com/relaxation-drinks-popularity-report-2014-9
Small excerpt from the article:
"Sales of relaxation drinks are booming. The drinks, which contain active ingredients like melatonin or l-theanine, have become popular because they are more of a novelty than caffeinated beverages like Monster Energy or Red Bull, according to a recent report by IBISWorld."
The article goes on to state that "The relaxation drink industry is currently worth $152.9 million" and that there about 70 million Americans have sleep issues.
Competitor establishes that demand for relaxation drinks is growing:
BeBevCo Strikes Gold With Golden Beverage As Perfect Alignment For KOMA Unwind Relaxation Drink
http://www.prnewswire.com/news-releases/bebevco-strikes-gold-with-golden-beverage-as-perfect-alignment-for-koma-unwind-relaxation-drink-619187320.html
Growth in International demand for the sector:
Feel Good Drinks Maker PIPER Mulls Dubai IPO in Growth Push
http://blogs.wsj.com/middleeast/2014/10/20/feel-good-drinks-maker-piper-mulls-dubai-ipo-in-growth-push/
Small excerpt from article:
"The logic behind PIPER’s expansion strategy is simple: the global market for relaxation beverages is booming. According to research firm IBISWorld, the relaxation drink industry is currently worth $152.9 million with more than 450 types of drinks available, a number that could double in the next 10 years."
Wikipedia: Relaxation Drinks
http://en.wikipedia.org/wiki/Relaxation_drink
Small excerpt:
"Relaxation drinks are formulated to help reduce stress, anxiety, improve mind focus, promote better sleep. Relaxation drinks are the anti-energy drink which have spread to the US and have found a niche alongside energy drinks."
DEWM
Thanks for the compliment, Swinetime. As covered in the recent detailed message to shareholders, DEWM's other expansion opportunities are definitely exciting and potentially very lucrative as well.
As always, simply my opinion.
Industry parallel - Dewmar International vs. Monster Beverage Corp
As many may know, Monster Beverage Corp (in its predecessor form) was at one point nearly worthless and filed for bankruptcy many years ago. After a couple of name changes, and after being acquired, it has not only recovered, but has become a monster (excuse the pun) in the beverage industry, currently valued at about $18 billion (with sales of about $2 billion annually).
While it may seem somewhat absurd to compare a tiny OTC company like Dewmar (DEWM) to an industry giant like Monster Beverage Corp, there is a method to my madness. Many years ago, there was simply no 'energy drink' beverage market. The closest thing that existed were drinks that provided energy due to their high sugar content, or caffeinated drinks such as coffee or tea. But the U.S. energy drink market has now grown to more than $12 billion annually, and is expected to break $20 billion by 2017.
As a complement to the energy drink market, we then had a new category of drink, relaxation beverages, emerge in the 2000s. And with the fast paced world, and recurring headlines regarding global conflict, economic challenges, and disease outbreaks, it is no wonder why such a beverage category would be necessary. And who's to say that the newer relaxation drink market could not grow with a similar trajectory to the energy drink market.
If the demand for relaxation beverages does explode at some point, Dr. Marco Moran (with his background, determination, and contacts) could be perfectly poised to capture a substantial share of that growing market, and potentially produce a stunning chart for DEWM similar to the monster bev chart below.
I suppose that we'll have to stay tuned for updates from Dr. Moran to see how things progress in the coming weeks and months. As always, simply my opinion.
DEWM
Very well stated mindovermatter... simple and to the point.
MM#4 awarded to you.
DD on the Relaxation Beverage Market:
US Energy Drinks Report:
http://www.businessinsider.com/relaxation-drinks-popularity-report-2014-9
Small excerpt from the article:
"Sales of relaxation drinks are booming. The drinks, which contain active ingredients like melatonin or l-theanine, have become popular because they are more of a novelty than caffeinated beverages like Monster Energy or Red Bull, according to a recent report by IBISWorld."
The article goes on to state that "The relaxation drink industry is currently worth $152.9 million" and that there about 70 million Americans have sleep issues.
Competitor establishes that demand for relaxation drinks is growing:
BeBevCo Strikes Gold With Golden Beverage As Perfect Alignment For KOMA Unwind Relaxation Drink
http://www.prnewswire.com/news-releases/bebevco-strikes-gold-with-golden-beverage-as-perfect-alignment-for-koma-unwind-relaxation-drink-619187320.html
Growth in International demand for the sector:
Feel Good Drinks Maker PIPER Mulls Dubai IPO in Growth Push
http://blogs.wsj.com/middleeast/2014/10/20/feel-good-drinks-maker-piper-mulls-dubai-ipo-in-growth-push/
Small excerpt from article:
"The logic behind PIPER’s expansion strategy is simple: the global market for relaxation beverages is booming. According to research firm IBISWorld, the relaxation drink industry is currently worth $152.9 million with more than 450 types of drinks available, a number that could double in the next 10 years."
Wikipedia: Relaxation Drinks
http://en.wikipedia.org/wiki/Relaxation_drink
Small excerpt:
"Relaxation drinks are formulated to help reduce stress, anxiety, improve mind focus, promote better sleep. Relaxation drinks are the anti-energy drink which have spread to the US and have found a niche alongside energy drinks."
DEWM
The importance of the elimination of toxic funding...
As stated in one of the bullet points within the updated President's Message on the Dewmar corporate site:
"As previously reported, the Company successfully managed through a series of ‘toxic’ financing facilities. The Company has no new or outstanding toxic financing facilities. The ability to be more selective about capital sources and frequency of financing has been the direct result of implemented cost controls and increased sales."
Why is this so fundamentally important? Because it is usually the toxic debt conversions (into common shares at below market value) that lead to the downward price spiral for an OTC stock.
For those that are not familiar with the phenomenon, the toxic lender/share converter is given common shares discounted from the current market share price (often deeply discounted in the range of 40-50 percent from the recent avg lows of the stock price). The toxic lender can then sell all the way down to that discounted share price range and still turn a profit. The unfortunate consequence of selling into that lower share price range is that the next conversion has an even lower share price bottom, and therefore an even lower share price conversion rate. This vicious cycle usually continues until the share price is so low, that the company resorts to performing a reverse stock split (as an act of desperation) to get the share price back up (where is is again attractive to toxic lenders).
Since Dr. Marco Moran has stated that 'The Company has no new or outstanding toxic financing facilities', there should be no downside risk of the above scenario occurring in the near term.
As always, simply my opinion.
DEWM
Thanks, deafcone. Much appreciated.
Industry parallel - Dewmar International vs. Monster Beverage Corp
As many may know, Monster Beverage Corp (in its predecessor form) was at one point nearly worthless and filed for bankruptcy many years ago. After a couple of name changes, and after being acquired, it has not only recovered, but has become a monster (excuse the pun) in the beverage industry, currently valued at about $18 billion (with sales of about $2 billion annually).
While it may seem somewhat absurd to compare a tiny OTC company like Dewmar (DEWM) to an industry giant like Monster Beverage Corp, there is a method to my madness. Many years ago, there was simply no 'energy drink' beverage market. The closest thing that existed were drinks that provided energy due to their high sugar content, or caffeinated drinks such as coffee or tea. But the U.S. energy drink market has now grown to more than $12 billion annually, and is expected to break $20 billion by 2017.
As a complement to the energy drink market, we then had a new category of drink, relaxation beverages, emerge in the 2000s. And with the fast paced world, and recurring headlines regarding global conflict, economic challenges, and disease outbreaks, it is no wonder why such a beverage category would be necessary. And who's to say that the newer relaxation drink market could not grow with a similar trajectory to the energy drink market.
If the demand for relaxation beverages does explode at some point, Dr. Marco Moran (with his background, determination, and contacts) could be perfectly poised to capture a substantial share of that growing market, and potentially produce a stunning chart for DEWM similar to the monster bev chart below.
I suppose that we'll have to stay tuned for updates from Dr. Moran to see how things progress in the coming weeks and months. As always, simply my opinion.
DEWM
Thanks, BigAl4. I definitely think that with the additional stresses in everyday life, the market for relaxation beverages could definitely grow exponentially, at some point.
Also, the growth of the relaxation drink market would be consistent with the current legislative wave in legalizing recreational mj use. Both promote a mellow existence.
As always, simply my opinion.