Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Absolutely, and I have always contended that Rich is a scammer and a fraudster! The company had potential, but it is being managed by a consummate scammer whose primary intentions is to fleece shareholders out of their hard earned money. Let's see how this stands up post-RS.
Very possible, given the lackluster sales figures for Q1 and Q2. Even if Rich fudge the numbers for Q3 by hyper inflating them, it is unlikely, the Canada roll out will have a drastic impact on sales and revenues.
Man, you don't miss anything, right? Good humor, I will say!
And. besides not "living in Canada", I don't think you spend most of your day fixated on this POS and dreaming up numbers to win an argument, right?
The Canadian roll-out will eventually fail! Yes, there will be some initial sales of a few dozen cases, but the litmus test will be repeated sales as you so aptly articulated. Here's a fact that has not been considered:
Canada is a major wine producer and exporter including having several brands of its own prosecco. Canadians are fiercely loyal to their own brands and I think Rich/CB are going to have a Herculean challenge to break into this market on a competitive scale. The price is another matter, some of Canada's prestigious brands are selling for less than $25.00 (Canadian dollars).
Here are six of Canada's indigenous sparkling brands.
Handsome Brut
Handsome Brut, a new sparkling wine brand hailing from Ontario, Canada, is on a mission to prove that bubbles are the perfect tipple—for any occasion. Produced with 100% Ontario Chardonnay grapes in the méthode traditionelle, this VQA-approved wine is aged for two years at the locally revered Angel’s Gate Winery in the Niagara region.
L’Acadie 2007 Prestige Brut
Bruce Ewert and his Nova Scotian-born wife Pauline Scott moved their young family to Nova Scotia in 2004 and founded L’Acadie Vineyards in the Gaspereau Valley. Bruce identified that the region had great potential for crafting sparkling wine and in 2008, released the first traditional method sparkling wine in Nova Scotia. Their 2007 Prestige Brut has won 5 awards and displays the utmost quality of L’Acadie Vineyards. Aged for 4-5 years on its yeast lees using the traditional method. Displays fine bubbles from natural fermentation in the bottle and celebrated toasty characters.
Benjamin Bridge Rosé 2011
The Benjamin Bridge vineyards are located in the heart of the Gaspereau Valley on the Bay of Fundy, where the cool climate bears an uncanny affinity with the Champagne region of France. About their sparkling wines, “They are, without question, the best sparkling wines I have tasted in Canada,” says Tony Aspler, Canada’s most renowned wine authority.
Summerhill Pyramid Cipes Brut
Summerhill Pyramid Winery, located in the Lakeshore district in Kelowna, BC, is Canada’s largest biodynamic and organic winery, producing more organic wine than the rest of the Canadian wine industry combined. In addition, Summerhill is Canada’s most visited winery and foremost producer of sparkling wine.
Haywire
Haywire wines are made at Okanagan Crush Pad winery in Summerland, BC, where owners Christine Coletta and Steve Lornie established Switchback Vineyard in 2007. The wines are made by Matt Dumayne with guidance from Italian consulting winemaker Alberto Antonini. Their signature wines are traditional method sparkling wines.
Cave Spring Blancs de Blancs NV
Cave Spring is nestled along a gently sloping terrace of the Niagara Escarpment. Overlooking Lake Ontario, this area known as the Beamsville Bench has proven ideal for cool-climate viticulture. Their 100% Chardonnay sparkling won the coveted Lieutenant Governer’s Award for Excellence in Ontario Wine. The wine is medium in body and quite rich in feel overall, the palate bursts forth with a tight, vivacious mousse and a seductive kiss of sweetness.
Very good advice, Whip! I did the same after holding for a very long time. I had an initial significant number of shares in the millions and sold about 80 percent about a couple months ago. Then, bought back in over the past several weeks and then liquidated 2.5 million about a week ago. Hey, money in the bank is money in the bank. If this brings a windfall post-RS for shareholders, I am glad for them, but, I rather wait and see what happens and buy back in sometime down the road. But, like I said excellent advise!
Well said, and you made your point, my friend. It's the truth!
Investors are already scared with the pending RS! Notice how selling has significantly out paced buying over the past several days. Today, there is practically no interest in buying shares. This probably is a harbinger of things to come. Just a few more days and we shall see who is right!
Here's how one can use deductive and inductive reasoning to figure out what the 11 investors have told Rich:
Someone asked if I was there in the meeting with Rich and the investors? Well, with commonsense, you did not have to be in the meeting to figure out what may have transpired. Deductive and inductive reasoning sheds light, and by the way, the the CEO’s own words and statements in the letter to shareholders confirm what I stated.
In the CEO’s own words:
1. A consistent objection is that it is nearly impossible to justify making an investment or collaboration with a pink sheet penny stock company. These potential investors/partners look for companies that are on solid financial footing and have a stock price that reflects a stable company. The contradistinction to this premise is that the investors told him the company is not stable, structurally and financially.
2. We are in discussions with the highest level of management and they have told us that they would like to see our capitalization table and share price more in line with its other public company partners in order to justify a major collaboration. One can read more into this, and it is obvious the management and investors told him the company’s capitalization table and pps are in a mess.
3. Investors from our financing want the Company off the pink sheets. The flip side to this is that ICNB is not attractive and the company has deteriorated significantly, hence the reason for the4 financial bailout.
4. The investment group was instrumental in helping the Company negotiate the retirement of the toxic debt. By mentioning this Rich is admitting that he ran up millions of dollars in toxic debt.
5. These individuals recognized the dislocation in the market place with the Company's stock price and its true value. This did not happen overnight. Rich ran the company into the ground, and the investors are telling him ICNB is not viable in its present shape and structure. “They have been strong proponents of cleaning up the cap table to enable the Company to tap into additional sources of capital in the investment community,” according to Rich. Cleaning up the cap table is indicative of a company in very bad shape and in serious financial dilemma.
6. In addition, the Company will be lowering our authorized share count from 2 Billion to a more normalized, 200 million shares. Rich is admitting that he diluted ICNB to death and is also accepting responsibility for the company’s demise. What was he thinking when he kept flooding the market with cheap shares? Will he do it again? Quite possible in another few years or so, IMHO.
MY ADVICE TO NEW INVESTORS IS TO RUN AWAY FROM THIS COMPANY AND SEE WHAT HAPPENS IN A FEW WEEKS. DON'T THROW AWAY YOUR MONEY BY INVESTING IN ICNG IN ITS PRESENT SHAPE AND STRUCTURE. GLTA
Well said, and I agree that he attempted to expand at the expense of investors and ran the company into the ground. That's why he has to do an RS, because the 11 investors who are underwriting the bail out told him ICNB is not viable in its present shape and form. How sad that a CEO with no experience at running a successful company made a big mess of a company that everyone agrees had a lot of potential, if it were managed properly.
Very good, Whip. As usual, you put a lot of thought into your write-ups, which is always appreciated by the silent majority on this board.
Agreed, but "buyback" does not exist in this CEO's vocabulary.
The problem with Rich saying he will reduce the AS to 200 million is that he could decide to increase it at any time, by filing the requisite paper work, right? I don't think anyone will be able to stop him from increasing the AS in the future, based on my understanding of how the process works. I agree, increasing the AS, does not mean a corresponding increase in the OS. But, I think the point he was trying to make is that the pending RS is bad for shareholders.
It's the truth, man, and you call it like it is. I personally have benefited from your unvarnished analysis.
Good observation, as usual, Whip. You are one if the most objective and impartial posters on this board. Thanks for your input, and always know, many of us appreciate your wise and unbiased point of views.
Man, you will not be able to find 5 companies who successfully RS and remained viable. Again, on point, and hopefully, many fence sitters are taking heed. I banked $10,000.00 this week from selling 90 percent of my ICNB shares, and I am one who believes people can make money from this in the future, but you have to know when to seize the moment to buy and sell for repeated short-term gains.
Man, you are so right. Here's another point! Last year, according to the company, was the best year, financially speaking in the history of the company. The company grossed about $3 million in sales, but still accrued a loss due to a deferred payment of $600,000.00 for a loan, used to replenish inventory. So, bottom line is that the company realized a loss of over half a million dollars for it's best year ever. Now, with the RS, and proposed up-list to either NYSE/AMEX or NASDAQ, the share value, i.e, pps will have to be sustained at over $2.00 and $4.00, respectively. Based on the proposed RS ratio of 250:1, the post-RS pps would be between .90 and a $1.00. So follow me now, the company will have to increased sales and revenues by a quantum leap, and I really mean it, to first make it to to these big boards and remain on NYSE/AMEX or NASDAQ, right? This has a a lot of hurdles to cross to even be a viable stock in the future or else, it will be de-listed and relegated to pinks again! GLTA
Very good point my friend. Wow, you can't spell it out any simpler!
Here's the big elephant in the room, so to speak. Everyone saying the RS is a good thing is ignoring that they bought in at a significantly higher pps that what it is or what it will be at pre=RS. I am not exaggerating when I tell you some folks who are huffing and puffing bought in at over a penny -- at least, for a part of their holding, as we speak. So, I agree with you, the post-RS will have to go up significantly for them to even break even, let alone make a profit. GLTA
The premise and rationale were all fabricated!
Definitely, and with minimal checks and balances by the feds for pinkies, one has to be very cautious with what CEO's put out. We have to take anything they put out with a grain of salt until it happens or is verified.
Absolutely, and your objective approach is noteworthy! Good job and GLTA
Can you verify that? Where is the independent fact-checking to ascertain whether Rich is telling the truth or just padding the narrative with what he thinks people would like to hear?
Says who? Can anyone trust a scamming, scheming CEO with a track record of 8 failed business ventures? He writes what he wants shareholders to hear, and some folks accept it as the gospel. They accept what he writes -- hook, line and sinker, without any fact-checking. NOT ME! When I see it, I will believe it!
The letter is very ambiguous with many of the assertions very Forward Thinking and NOT VERIFIABLE!
Here's the result of a peer review by some of my colleagues:
Grading Iconic Brands Letter to Shareholders:
The Company is excited to provide shareholders with an update on all the progress we have made on a number of fronts in 2018.
The following grades were assigned, based on peer review and applying industry-wide Standards/Rubrics
(1) Specific but not verifiable (C Grade)
We have been working diligently to increase distribution of our Bellissima product line both domestically and internationally. Since Labor Day we have announced new distribution agreements with (1) approximately 200 “Vintage” stores of the LCBO in Ontario Canada, (2) Wegmans Supermarkets which has over 100 stores in 6 States, and (3) a distributor that sells in Norway. We believe Canada and Wegmans provide opportunities that have only begun to surface and in the coming months management will be focused on vastly expanding those relationships.
(2) Specific but not verifiable (C Grade )
Company is enthusiastic about the enhanced distribution of brands by the Company’s distribution partner, Romano Beverage, in the State of Illinois. The focus by Romano Beverage has resulted in not only an increased presence of Bellissima at Binny’s but also the placement of Bella Sprizz Classic Aperitif and Elderflower. Romano Beverage has also added Garfield’s Warehouse stores in Illinois to our retail distributor partner list for both Bellissima and Bella Sprizz Aperitifs.
(3) Forward Thinking/Flowery language to mislead shareholders (F Grade) Management continues to work tirelessly on expanding the footprint of Bellissima and Bella Sprizz. The expansion has yielded placements with many new retail partners.
(4) Eliciting sympathy/Emotional Appeal ( F Grade)
The process of building a brand is painstaking and difficult. It requires strong management, patience and perseverance.
(5) Forward Thinking/not verifiable (F Grade)
The Company’s sales team continues to gain shelf space. These efforts are starting to yield significant “traction” that all global brands strive for.
(6) Forward Thinking/Flowery language/Not verifiable (F Grade)
The Company is laser focused on expanding Bellissima’s International presence. Management is in talks with a number of Global Distribution Partners.
(7) Specific and definitely a Positive (A Grade)
On the corporate side the Company have made great progress. Since the beginning of the year the Company (1) engaged a PCAOB approved auditor that helped us to bring our financials current, (2) Hired David Allen as our Chief Financial Officer (Dave has been a CFO for public companies the past 20+ years) and (3) Retired all the toxic convertible debt that was on our balance sheet. These three milestones have put the Company in position to up-list off the Pink Sheets.
(8) Emotional Appeal/Flowery language/not verifiable (F Grade)
Many shareholders have asked, “Why does the Company need to consummate a reverse split so soon?” There are several reasons as set forth below: As a penny stock, it is very challenging to be taken seriously by: (a) institutional investors, (b) investment firms, (c) potential strategic partners and (d) retail brokers. A consistent objection is that it is nearly impossible to justify making an investment or collaboration with a pink sheet penny stock company. These potential investors/partners look for companies that are on solid financial footing and have a stock price that reflects a stable company.
(9) Forward Thinking/Intentionally ambiguous/Not verifiable (F Grade)
The need for a reverse split has been accelerated due to interest from a potential partner to enter into a significant licensing and distribution agreement. This potential opportunity with a well-known national brand also has an International presence. We are in discussions with the highest level of management and they have told us that they would like to see our capitalization table and share price more in line with its other public company partners in order to justify a major collaboration.
(10) Forward Thinking/Emotional Appeal/Not verifiable (F Grade)
This potential partnership is not related to our current product portfolio and management anticipates this partnership could be transformational for the Company and its shareholders.
(11) Intentionally Ambiguous/Not verifiable ( F Grade)
Investors from our financing want the Company off the pink sheets. The new investment group was instrumental in helping the Company negotiate the retirement of the toxic debt. The investment group has been an invaluable source of advice and strategic support. The Company’s investors are investment bankers in one of the most successful groups in the small cap space. These individuals recognized the dislocation in the market place with the Company’s stock price and its true value. They have been strong proponents of cleaning up the cap table to enable the Company to tap into additional sources of capital in the investment community.
(12) Intentionally Ambiguous/Not verifiable (F Grade)
Two of the investors in our financing were former CEOs of major investment banks. We are thrilled with the caliber of long-term investors now in place and look forward to a very long relationship with all of them.
(13) Forward Thinking/Not verifiable (F Grade)
The financing terms mandate that the Company up-list following the reverse split. Contemporaneously with the reverse split management will roll the remaining 49% ownership of Bellissima and BiVi into Iconic for all the Company’s shareholders to benefit from the success of these brands. The culmination of all of these steps will result in the up-listing of our stock to a National Exchange.
(14) Forward Thinking/Not verifiable (F Grade)
The last step in the process of attracting long-term institutional shareholders is cleaning up and simplifying our current share structure. Management will be restructuring the outstanding Preferred D shares in the coming months. The cash covenant that would be taken by management upon a Brand sale is being eliminated as well. It is important for the shareholder base to understand that Management put these covenants in place when the company was Bellissima and BiVi centric. The Company is in the process of building an alcohol beverage business framed on the likes of the major names in the industry.
(15) Forward Thinking/Ambiguous/Misleading since Rich could file in the future to increase the AS and begin a new cycle of dilution (F Grade )
In addition, the Company will be lowering our authorized share count from 2 Billion to a more normalized, 200 million shares. Management’s restructuring of their Series D shares and rolling the current brands into Iconic further demonstrates and affirms how confident management is about the future of the Company.
(16) Forward Thinking/Not verifiable/Intentionally Misleading ( F Grade)
Shareholders can rest assured that the Company will no longer be able or willing to take on ANY variably priced instruments as investments in the Company.
(17) Forward Thinking/Not verifiable/Misleading (F Grade)
The Company will soon comply with all these prerequisites putting the Company in a strong position for future success. These actions taken by the Company in 2018 are truly monumental steps for any small cap company and demonstrate how proactive the Company is in creating shareholder value.
(18) Verified/Definitely a Positive (A Grade)
Christie has been the ultimate partner for Bellissima and Bella Sprizz and she gives 1000 percent each and every day. Christie has traveled across the country building the Bellissima and Bella brands. This past weekend Christie traveled to Toronto Canada to officially launch Bellissima at the largest LCBO (Liquor Control Board of Ontario) store in Toronto.
With 2 A’s and 2 C’s and a whopping 14 F’s, the summative and cumulative grade is F. Based on Quality Points, ICNB earns a cumulative GPA of 1.2 out of 4
Experience and a level head, is what you have. Great post again!
Quite possible, and who knows, this could have life post-RS.
Good points and a balanced point of view
Very true, and even a blind person can see Rich is clever at hiding his tracks and intentions. The news had a lot of forward leaning ideas, and frankly speaking, he succeeded in duping many shareholders not to sell. Post-RS will be a bloodbath when more than 50 percent of the present shareholders realize that they are down to less than 100 shares. Very unfortunate, some are not heeding the advice to SELL and come back in post-RS. The problem, I believe is that many bought in over a penny, and its hard to liquidate now at more than 50 percent loss. But, if I were in their shoes, I would rather cut loose now, take a loss, and wait and see what happens post-RS, especially after the hair-cut which often follows any RS.
Not saying this alternative might not happen, but time will tell, right?
That's the crux of the matter, and well put! I was a strong believer in this, but, I started noticing that Rich constantly diluted the stock to make ends meet. He also could not even pay for inventory/wine shipments up front without going to debtors. Even the suppliers did not trust him enough, to let him have the products on consignment, i.e. paying for the shipment after it's sold. This is a small company and there is absolutely no excuse for constantly borrowing at shareholders' expense. And, based on your analysis, the loss to profit ratio is widening. NOT GOOD! If revenues don't increased 10-fold from Q1 and Q2, so far this year, It looks like the company will accrue unsustainable losses by EOY. It looks like the margin of profit from the lines of wines is so small, the company cannot sustain its operations without going to creditors. The latest $1.2 million from 11 or 12 investors is another debt that will have to be serviced from the meager profits or sad to say from continued dilution. This wine business is sales-volume oriented, and without a mega increase in sales volume, this is doomed. The Canadian distribution has started, but just like the U.S. roll-out did not have legs to sustain sales this year, so far, I suspect the Canadian roll-out will also spike sales a bit, but will also taper off and decline next year. Just my humble opinion. Appreciate your due diligence, and being so thorough in your write-ups.
Very comprehensive, and your analysis/attention to details/deciphering of hard-to-understand accounting concepts are most welcome. Thank you sir!
Nothing is cast in concrete, and it's possible and even probable that many investors are going to sell at the first opportunity post-RS. And, if a significant percent of the shareholders sell, then the corresponding result will be a huge drop in the pps. Additionally, I don't think anyone will get a dollar/per share post-RS. That's the theory, all things, being equal, but lets see what happens. Today could be another down day, with 98 percent sells and 2 percent buys.
Very good analysis, as usual. You touched all the important issues, and we appreciate your due diligence and attention to details. Nuff respect man!
A little volume is right, and it's almost all sells. Folks are heading toward the door, pre-RS. I just posted my sincere analysis of ICNB a few minutes ago.
Agree with that, and It's going to be very depressing for anyone with a few hundred thousand shares or even a couple milly -- pre-RS and Post-RS. Please check out my ICNB analysis I posted a few minutes ago.
Hey Whip, while I understand your points, I would say, ICNB is not a typical small security, so I have to disagree with your premises. This is not going to hold up over .003 for too long, and as we get closer to RS at the end of the month, this is going to fall flat like a pancake. It's already tanking, and wise investors with a few hundred thousand shares or even a couple million shares will be well advised to liquidate their position and re-evaluate after the RS. Here's some food for thought:
Like I said, this will drop flat like a pancake, and there is no holding it back now. RS could happen at any time, and I suspect, the pps will fall even more dramatically, pre-RS.
For anyone owning two (2) million shares or more, here is the rationale why selling now makes perfect sense. Any investor/shareholder with less than one million shares, you should have sold already, so as not to lose your entire investment. That’s a no brainer, IMHO.
Based on what I have been told the 8K specifies that the pending RS will be 1:250.
Here’s the math to show why it makes perfect sense to sell if you are an investor with 2 million shares or more. If you have a lot of shares like 10 million to 25 million, you have to decide what is best for you. This analysis is for investors with a few million shares.
After the RS, a person with 2 million shares (pre RS) will be reduced to 8,000 shares:
2,000,000/250 = 8,000
If the pps, as some are predicting, even goes to 5 pennies (.05) after the RS, (personally, I think it could be a lot less than that), your 8,000 shares will only be worth just $400.00 Depending on when you came in, that is equivalent to a complete wipe-out.
Now, on the other hand, if you liquidate or sell your 2,000,000 shares now, at say .0040, you will realize about $8,000. (2,000,000 x .004 =$8,000.00
For me, I would rather have $8,000.00 in the bank than a miserly $400.00.
Now, for argument sake, suppose the post-RS pps is .10, your investment will only be worth $800.00. (8,000 x .10 =$800.00
Now, let’s make the argument outrageous by setting the post-RS pps at $.50 (fifty cents). Even with that your 8000 post-RS shares will be worth only $4,000.00. (8,000 x .50 = $4,000.00)
So, you took my advice and you sold your 2 miily shares and you now have $8,000.00 in the bank. Here’s what I will do post-RS.
Based on my experience with other OTC/small securities/pinkies, the post-RS value does not last very long. In most cases it fluctuates for a few weeks and then often settles down at more than 50 percent lower.
So let’s assume the post-RS pps settles down at 2 pennies (.02), you can always jump back in down the road. I would suggest starting with an initial investment of $4,000.00 which would be 200,000 shares. There is a possibility that Rich will push hard after the RS to get this in the big markets, perhaps in a year or two from now. If that happens and the pps, by some streak of luck, makes it to $1.00 or even $2.00 in two years from now, your initial investment will be worth at least $200,000.00. But, that’s an investment risk you will have to take.
For now, the best course of action to take is to sell your position and see what happens post-RS. And, remember Rich will not be able to do another RS after this one for a couple of years, based on SEC/FINRA regulation. I think it’s a year or so, subject to correction. Also, keep in mind that the notice to RS could come at any time, and the pps could sink a lot lower – even tracing 20’s in the next week or so, leading up to the RS, if it is delayed for a few days. So, bottom line is, sell if you are going to sell. Now is the time. It’s possible, the pps could also go up a bit, before the RS, but don’t allow that to cloud your mind. A bird in the hand is worth two in the wild, and with this stock, you really can’t predict what it will do.
There is an old African proverb that says: “Gather hay while the sun is shining.” As we have seen, only big news in the past have pushed this up, and I don’t see anything Rich could serve up between now and the end of the month that could move this to even a penny. So, it’s better to cash out, watch on the sidelines for a couple of months and jump back in before January when fins would show how Christmas sales went. Usually, it’s good, so it might be a good idea to load up a few more at levels of the post-RS haircut that often happens. By doing so, you will catch the wind, if Q4 sales/revenues are very good.
Lastly, for investors holding a few hundred thousand shares, it makes no investment sense to hold on to those shares. The RS will just wipe you out completely, and you will be left holding an empty bag. Waiting for your feedback, and GLTA!
Good points!All Rich did was cleverly masked the $600,000.00 loaned to him for upfront payment.
That's a good estimate, IMHO. I believe it will be between $200,000.00 and $300,000.00, there about.
My predictions for Q1 and Q2 (which I posted here) were not bad, and within range of what the final figures were, so I would hazard, under the risk of getting pounced upon, that Q3 sales/revenues could be in the range of $200,000.00 to $300,000.00.
Thank you!