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That's "Death spiral financing" at its best.
He said "several weeks" on 03/23 and since the stock is in free fall I think PK will move his a** a little bit faster and master another PR during next week (April 4-9). IMO
PK definitely doesn't want that as he would need to issue more shares at a less and exhaust 500M by the end of the year. (heck, at least I would win bottle of TV) Expect shareholders' letter and corresponding PR next week.
That's why I think it's not attainable, but would be the best news for all of us if it did happen.
Guys, don't you understand, new launches are not going to save DA. They only going to bring more expenses that the company can not afford to pay at the moment (unless diluting us into sub-penny category). Company must show it can deliver on current portfolio. IMO the best news for the company and shareholders would be ~$250K fee income (from Mexcor) for April 31 Qtr and ~ $400K for the July 30 Qtr. But, I don't see how they could pull this up.
HAHA some poster stated in the comments: "Like everything else dealing with 'Detox'..."I'll believe it when I see it" "
Reminds us something, doesn't it? :)
TV is not for this economy. It doesn't sell well. I asked my local liquor store guy how was it doing and he said "doesn't sell" whereas Olifant sells very well at the same store. I see potential in TV when the economy improves and there will be more money flying around and people would be willing to throw their money at the luxurious things. In the meantime DA must capitalize on Olifant. This is the best ground for high quality dirt cheap vodka.
Hey, Joe, at this point nobody knows. If the "truckload" of Damiana was shipped, if it was distributed, if trcukload fits at least 3000 cases then DA will at least report $30,000 this quarter :). But hey, there are good news! Next quarter (July 30) DA will at minimum report $92,000: $82,000 (Israel distributor's prepayment) and $10,000 Mexcor minimum payments even if they don't distribute a bottle :)
Take my advise: if you believe - hold on and add more on dips. If you don't - wait for the next spike and dump it.
I do believe.
Because it's a big fat legal hurdle especially for a small company like DA.
The subscription price of the rights, and the price of the Units and final structure of the securities underlying each Unit (which will be made up of Preferred Stock and Warrants) shall be set by the Company's Board of Directors with advice from the dealer manager and our securities attorneys prior to the filing of the final prospectus with the SEC.
Don't even think that dilution stops until the rights offering.
Add Spartak to believers as well. I'm not on the shuttle per se but I fully expect it to fly one day. It is frustrating to see it on the ground for so long, but it will fly.
BTW, what's MIA? Where is Sneaky?
Guys, why don't you just buy Olifant - as good as TV, 1/3 of its price, counts as boosting sales too! :)
The warehouse part stands correct. But that not what I was trying to convey. Olifant, especially in this economy, suppose to fly off the shelves. Unfortunately DA due to insufficient working capital could not even fill the orders for Olifant. Now, those orders will be filled and Olifant will be introduced to more states, increasing its exposure and recognition. This by itself should lead to increasing sales.
Now I don't know if this is a result of Mexcor's doing, but recently more and more liquor stores in Brooklyn began to carry Olifant.
"I understand past company/stock history is very ugly. But with recent moves, don't you agree that the company is moving in the right direction slowly but steadily.... "
You stole my words I wanted to address to griff.
Financials show positive signs, but we're not out of the woods yet.
Two major problems/uncertainties face the company and I believe two can be fixed in the near future:
1) Dilution aka Death Spiral Financing:
- much can be done with the rights offering. Forget about $30M. $8-10M (IMO attainable) would do wonders for DA and stop DSF/Dilution.
2) Income:
- with Mexcor filling the shelves with DA's products on the national level and providing cash supply DA can manage international markets (Israel, Canada, Russia) with much greater success.
So, while I understand how people get angry and frustrated with the company for its ugly past you can't ignore recent positive developments and proclaim the future did not become brighter since couple quarters ago. IMO everybody is waiting for the results of the April 31 quarter to make an investment decision.
So what is your "opinion of this stock" for the foreseeable future? Up? Down? Par? What do you recommend potential individual investors? Please, rationalize.
Yep. No change since last week. O/S: 257,869,508 Yay! We get a breezer!
Where is Walker? I hope he didn't die because of hangover! That wouldn't do much advertising for Olifant :)
Of course it's frustrating and all this convertible financing is like shooting yourself in the foot, but PK has no choice. The only thing can save company from issuing more preferred shares and diluting shareholders to death is increasing sales from Mexcor. Not a new launch (Rheingold), not useless PR that will drive the stock price up 100% just to slam it down 150% in the next month. SALES. ONLY HOPE.
But, I'm more comfortable knowing Mexcor handles production and distribution (crucial stages) and will continue adding on the dips. I feel like the worst (15K Quarter) is behind.
I wander are they all shareholders or just stating the truth?
http://www.rateitall.com/i-879982-olifant-vodka.aspx
LOL good luck, dude! And remember the degree of hangover directly correlates to the amount of alcohol consumed. And Olifant, while Gods drink, is still alcohol :)
Haha, dude, I have this 1.75L (best price per oz.) Olifant in my fridge all the time (on a replenishment basis of course :) ). I do SOB drink (1/3 Orange, 1/3 Cranberry, 1/3 Olifant + 1/6 Peach schnapps) and LLLLLove it!!!
Yep. 3000 cases = $30,000 :) That's more realistic. But keep in mind everybody that to have this $30K (net) before JV DA had to sell for ~ $107,000!! So don't jump the gun, this new venture means totally new math.
Walker, let me tell you, this is truly divine vodka. It tastes smoothly and I didn't have that kind of hangover like after "Absolute" or "Smirnoff". There is no reason for Olifant not to be the next Wonder of the World considering it's price tag.
Dude, OMG sorry if I got your hopes high, I thought it was obvious joke. It's good if this "truckload" fits 10,000 cases which is doubtful. Sorry :)
Yeah, I forgot (stupid). From now on we can forget about the sales. It will no longer be like before when Gross sales were recorded on books of DA. So, sales and per case payments remain complete mistery until clarified by PK.
So that means that Gross Income for DA may be only a hundred thousand or something next quarter (forget 400K -500K-1M). But on the other hand no COGS and salary. Should be interesting. Very interesting!
BTW how many cases in the "full truckload" of Damiana? I hope 100,000 :)
I agree. But since production now in hands of Mexcor ("Drinks will remain the owner of the brands while Mexcor will manage the production, manufacturing and supply chain for our brands and take over selling and distribution of our brands nationally") I want to stay positive. So, if Kezzek could answer my previous post I'd appreciate it.
Evidencing the immediate impact of the Mexcor relationship, last week a full truckload of Damiana was shipped and orders were placed for the new production of 8,000 cases of Olifant Vodka (Spartak: approx $340,000 in revenues). Two containers of Trump Super Premium Vodka are now in production and we are planning to ship between 1000 and 1900 cases of Old Whiskey River Bourbon this month. The immediate impact of the Mexcor deal has been the sales and acceleration of shipment of almost 10,000 cases that will ship as soon as production is completed.
The Company filed a counterclaim of $500,000 for damages against Liquor Group and has denied their claimed breach of contract claim previously made against it. The Company contends that it is owed money by Liquor Group under the agreements. There is currently pending an arbitration before the American Arbitration Association involving the dispute between Liquor Group and Drinks Americas. A final arbitration hearing has been scheduled for June 22, 2010, in Jacksonville, Florida. Liquor Group Wholesale, Inc. and/or Liquor Group Holdings, LLC sought arbitration on a breach of contract claim asserting damages in excess of $1,100,000.
At this point in time nobody will answer this question without gross guessing. "In the next several weeks" which may turn out to be couple of months PK himself will address shareholders on the Mexcor sales. I admit I don't expect 1M quarter, but will take anything over this quarter's numbers as positives.
On March 2, 2010, we issued 6,000,000 shares to our Chief Executive Officer and President; 5,000,000 (aggregate value $100,000) was a partial payment against the working capital loan he has provided to the Company and 1,000,000 (aggregate value $20,000) was awarded by the Board of Directors as a stock bonus for his accomplishments in the creation and launch of one of our premier brands.
It's "encouraging" to know that after the stock plunged from $3 to 0.01 there are people that have dignity to refer to CEO's actions as "accomplishment".
Good, the bet is on. Bookmark it.
I'm not a big gambler, therefore I'm willing to bet a bottle of TV (1L) that by the end of the year O/S will be from 450M to 500M. I lose - I ship, you lose - you ship. Do you accept my bet?
P.S. Hopefully, by this time TV is still on shelves :) As most liqueur stores in Brooklyn discontinue carrying it.
P.P.S Hmmm... if I invested around 14K in DKAM how is this I'm not a big gambler? :)
"dilution will stop!!!"
Walker, with all due respect, did you read 10Q? Did you see that past due interest, accrued salaries, litigations? Total liabilities went up from 7,351,870 to 7,469,431 in spite of this inhuman dilution. I bet O/S will reach 500M this year. This year!
On March 4, 2010, we granted 2,000,000 shares of Company common stock under the 2009 Plan to a financial consultant in satisfaction of payment for a $40,000 note payable (See Note 9 (d) - Notes and Loans Payable.).
On March 2, 2010, we issued 6,000,000 shares to our Chief Executive Officer and President; 5,000,000 (aggregate value $100,000) was a partial payment against the working capital loan he has provided to the Company and 1,000,000 (aggregate value $20,000) was awarded by the Board of Directors as a stock bonus for his accomplishments in the creation and launch of one of our premier brands.
On March 2, 2010, we issued 36,150 shares of our common stock with an aggregate value of $723 to a former employee in satisfaction of past due wages net of advances.
On March 2, 2010, we granted 2,000,000 shares of our common stock with an aggregate value of $40,000 under the 2009 Plan to a consultant in exchange for marketing services. The shares vested immediately on the date of grant.
On March 10, 2010, we issued 2,000,000 shares of our common stock with an aggregate value of $40,000 for investor relation services provided to us under the terms to a management consulting agreement.
On March 10, 2010, we granted 3,000,000 shares of our common stock with an aggregate value of $60,000 under the 2009 Plan to a consultant in exchange for marketing and promotional services. The shares vested immediately on the date of grant.
In connection with the June 18, 2009 Drinks Debenture financing by an investor, the investor submitted a Notice of Conversion, on February 11, 2010 to convert $108,375 of the outstanding balance of the Debenture in exchange for 8,500,000 shares of our common stock.
In connection with the June 18, 2009 Drinks Debenture financing by an investor, the investor submitted a Notice of Conversion, on March 11, 2010 to convert $120,000 of the outstanding balance of the Debenture in exchange for 7,058,824 shares of our common stock.
Nothing new here. Still paying bills with shares. Ultimately at our (shareholders') cost.
I tried using your links and found like -0- Olifant and Trump vodka on those websites.
I'm a little bit concerned with company not PRing "Mexcor sales". Would be nice to at least know there are orders besides those announced in the shareholders' letter and these orders are being filled. Maybe they'll update us during next CC.
"Many with 2-3 times that amount, with less going for them are trading at .10+."
I know. But we are where we are - 0.017. For DKAM to see 0.10 PK needs to stop dilution and show sales growth in each quarter. Monumental task. For first thing to happen second one must happen first. So i'm hoping to hear any update on how is Mexcor doing with Drinks' products and do not expect PK to be done diluting soon.
O/S: 257,869,508 up almost 8M from last week and 29.5M since JV
God please do something!..
"now just waiting until this goes below a penny"
With this mega dilution it sure will soon.
"Wondering why the O/S went up so much even after the Mexcor deal...."
The only explanation - lack of cash and necessity to pay bills. With the way DKAM PRs every transaction I'm sure they will do so regarding any cash infusion from Mexcor. After that moment I hope dilution stops. Until then - 300-350K O/S is imminent as they dilute 10M a week on average, which is crazy! $150,000 every week... for what???!!!