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This was a headline from Business Insider today. "Cannabis companies have slashed over 1,000 jobs in recent weeks as the industry contends with a 'toxic' landscape. We're keeping track of all the cuts here."
YGYI has hyped their hemp business and maybe this is part of the reason for the selloff in recent weeks.
I've seen this before. But not so quickly. Almost seems like a regulatory issue. But I don't know a thing.
Who knows?
But these guys have no business running a public company.
The reverse split is officially a loser.
Over 30,000 shares pre-market and the stock getting hammered again. Something is going on. Down around 20 cents.
Overview of Youngevity International's new preferred stock, YGYIP
https://seekingalpha.com/article/4293673-youngevity-international-new-9_75-percent-tiny-preferred-stock-ipo
YGYI’s CLR Roaster’s Announces Multi Chain Expansion of Company Owned Josies Java House Brand into Southeastern Grocers
https://ih.advfn.com/stock-market/NASDAQ/youngevity-international-inc-YGYI/stock-news/79839628/ygyis-clr-roasters-announces-multi-chain-expansion
Year ended December 31, 2018 compared to year ended December 31, 2017
revenues decreased approximately $3,251,000 or 2.0% to $162,445,000
Direct selling segment revenues decreased by approximately $3,595,000 or 2.5%
This decrease was primarily attributed to a decrease of approximately $11,002,000 in revenues from existing business, offset by revenues from new acquisitions of approximately $7,457,000.
We attribute the decrease from existing business primarily to a general decline in net sales in North America in the direct selling business as well as a decline in new distributors.
****************************************************************
For the year ended December 31, 2018, commercial coffee segment revenues increased by approximately $344,000 or 1.5% to $23,590,000 as compared to $23,246,000 for the year ended December 31, 2017. This increase was primarily attributed to an increase of approximately $1,048,000 in revenues from our roasted coffee business, offset by a decrease of approximately $704,000 in green coffee business.
For the year ended December 31, 2018, the direct selling segment had an operating income of $1,733,000 and the commercial coffee segment had an operating loss of $4,370,000.
*************************************************************
Going Concern Uncertainty
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has recurring losses and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1 to the financial statements. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.
CBD cannot be sold as a dietary supplement, so I am not sure how YGYI can put it in their coffee.
9. Can THC or CBD products be sold as dietary supplements?
A. No. Based on available evidence, FDA has concluded that THC and CBD products are excluded from the dietary supplement definition...
https://www.fda.gov/NewsEvents/PublicHealthFocus/ucm421168.htm#dietarysupplements
https://www.cnbc.com/2019/04/03/fdas-gottlieb-raises-concern-over-walgreens-cvs-selling-cbd-products.html
I wonder if he actually was compensated for being a "nobody"...And doing nothing?
I count 23 members of the "management team."
And I haven't even counted CLR roasters.
Seems they could consolidate some of those positions.
Those are a lot of paychecks for a micro cap company.
It looks like Sanjeev Javia has been purged from the YGYI executive suite. And it does not seem he holds any management position right now.
Not a picture or a biography.
Does this mean he was fired or was he never really employed?
Did he ever collect a paycheck?
Is he getting any compensation today in any other position with the company?
What happened to him?
Wrong answer.
"Sanjeev Javia, Scientific & Athletic Advisory Board
Sanjeev has multiple roles at Youngevity, including product development and devising the marketing strategy for our international markets."
Wallach must be making this up then?
He has a guy running a competing CBD company doing product development for Youngevity? And devising marketing stratgy?
What else in your opinion is a fairy tale that the company just throws on their website?
Just that he is running his own company in a space that Youngevity competes in.
Should he break all ties with YGYI?
What does anyone else think?
What do Wallach and Briskie know? And what do they think?
Are they ok with this?
What access does Javia have to YGYI trade secrets?
Javia is featured prominently on the executive team page for YGYI.
https://ygyi.com/corporate/executive-team/
They say he is involved in product development. He should not be if he is running a competing company.
And people wonder why the stock isn't higher. I think it's all about YGYI management. But they control most of the shares. So the stock is just a trade. It may not be investable yet.
They were bought by Grey Cloak Tech...
Sanjeev Javia is the President and CEO of Grey Cloak.
Javia is also listed as part of the Youngevity executive team and is on the Scientific & Athletic Advisory Board of YGYI.
https://ygyi.com/corporate/executive-team/
And your question about Eqova...They are into hemp oil products.
https://eqova.com/eqova-acquisition/
So it would seem Grey Cloak is competing with YGYI in the hemp oil market.
Is it a conflict of interest or not?
Only about 26 million shares outstanding. And insiders control over half of that and they are not selling.
So it is pretty easy to push the stock up or down. I am hoping for more up.
Comprehensive Agreement Reached on Construction of State of the Art Processing Plant Increase in Profit Participation for CLR Roasters and Acquisition of the coffee brand Café Cachita.
https://ygyi.com/2019/01/22/ygyis-clr-roasters-expands-capabilities-in-nicaragua-and-the-usa/
They are building a coffee processing mill in Nicaragua.
At a cost of about $9.4 million dollars of which Youngevity will contribute $4.7 million, and of which they will have 50% ownership, but 75% of the profits.
There is also a transfer of ownership of 153,846 shares of YGYI stock to the Nicaraguan partner by CLR (Youngevity's coffee segment) as consideration for its percentage ownership of the Property.
Youngevity has also agreed to issue 295,910 shares of its common stock to the to the Nicaraguan partner to pay for certain working capital, construction and other payables.
Youngevity has already paid $900,000 dollars to the project and the remainder of their $4.7 million dollar share will by paid by July 15th 2019.
It was also noted in the 8-K that CLR has purchased their partners espresso brand, Café Cachita, in consideration of the issuance of 100,000 shares of the Company’s common stock.
The shares of common stock issued were valued at $7.80 per share.
The mill will be constructed on a 45 acre tract of land in Matagalpa, Nicaragua.
Thursday was a classic pump and dump.
You just can't trust any rally in this stock.
Too bad.
One thing that is still missing is a legitimate wall street brokerage backing the company.
It seems no matter what they do they can't get coverage of their stock by a name firm.
That is on the executive team running the company. And as much as I like the agreement with Icelandic Water, they still need a following on the street to be considered legitimate. Profits would also help. Something they have not achieved in the last ELEVEN years!
Ok Youngevity. Where is yours? The competition is beating you to the punch.
New Age Beverages $NBEV Enters Deal to Develop and Distribute Marley Branded CBD-Infused Beverages https://t.co/yhBgBPWxEo
You also have to believe that it is imperative for Icelandic that this collaboration succeed.
Remember that soft drink companies like Coke and Pepsi are also in the business of selling bottled water.
This is one way for Icelandic, through CBD drinks, to differentiate themselves from other competitors, and to potentially beat them to the punch with these new drinks.
I think we will see something on the shelves imminently.
That is very true.
This is just not a deal with Icelandic Water.
Because Anheuser Busch is not just a distributor of Icelandic Holdings water products in the United States.
We also have to remember that Anheuser Busch also holds about a 23% stake in IWH.
Any financial success in the collaboration between YGYI and IWH, also filters down to ABI.
Key parts of the agreement.
"IWH will be obliged to offer any jointly developed beverage to Anheuser Busch-Inbev (ABI) for distribution."
"Sales commission structure for the sales will be based on the respective Party’s contribution..."
" The parties will agree the funding of the development of the product and therefore the ownership on a case by case basis. The cost of development is not expected to be very high."
"YGYI will have the right to use Products for promotional purposes on the Amazon Platform in USA. The Parties will explore ways of working with IWH’s existing broker to maximise sale of both Parties’ products through Amazon..."
"YGYI and IWH will jointly look to develop distribution for their products in all markets outside the USA."
"After the initial Term, YGYI will have the right to extend this agreement by increments of one year for a maximum of a further two years..."
And here is the biggest key. YGYI has already developed CBD products...All they need is a re-branding with Iceland Water, and then offered for distribution thru Anheuser Busch.
"YGYI .... has developed a range of Cannabidiol (CBD) products and is looking for a partner with which to launch ready to drink CBD products..."
The work has been done. Start selling.
Important notes.
Sales in United States...YGYI will have the right to use Products for promotional purposes on the Amazon Platform in USA. The Parties will explore ways of working with IWH’s existing broker to maximise sale of both Parties’ products through Amazon subject to clause 1.3 above.
Sales outside USA
YGYI and IWH will jointly look to develop distribution for their products in all markets outside the USA.
The parties will agree the funding of the development of the product and therefore the ownership on a case by case basis. The cost of development is not expected to be very high.
IWH sells Icelandic Glacial® premium bottled water in a variety of formats (Products) in the United States through its master distributor Anheuser Busch – Inbev. (ABI);
YGYI sells a range of dietary supplements through a multi-level marketing platform in the US and Internationally, has developed a range of Cannabidiol (CBD) products and is looking for a partner with which to launch ready to drink CBD products...
The press release will apparently be next week.
The parties will issue a joint press release substantially in the form set out in Appendix 1 within three (3) business days of signing of this agreement.
EX-10.1 2 ex10-1.htm EXCLUSIVE AGREEMENT WITH ICELANDIC WATER HOLDINGS HF., DATED JANUARY 10, 2019
More details here...
https://www.sec.gov/Archives/edgar/data/1569329/000165495419000397/ex10-1.htm
Icelandic Water Holdings is a major player in the Global bottled water market.
They compete with the likes of Coca-Cola, Nestle and an assortment of other companies.
To enter into an agreement with these guys????
This was no small achievement.
And here is another kicker for you...If this isn't enough.
Anheuser Busch InBev is a minority holder of Iceland Water. About 23.3%
So basically, Youngevity will have it's products distributed in the United States the Same way Icelandic Water does...Through Anheuser Busch.
But the biggest thing is the International distribution channel.
They have an easy entrance into the world wide market! A ready made channel to sell through.
Co-developed products with a well known company world-wide.
I think I am going to have a Budweiser tonight.
This agreement also opens up the possibility Icelandic could acquire a partial stake in Youngevity somewhere down the road, if not buy out the entire company.
They did not issue a press release on this Icelandic deal.
Just an 8-k SEC filing.
Very few have seen it let alone read it.
My news provider did not alert me until after the market close tonight.
Obviously some have read the 8-K and that is why the stock was up today.
But there is a lot more room to run when the news becomes more widespread.
Remember no press release was issued>
Trying to keep it top secret, I guess.
And this is why I think the stock may triple soon.
It is all about global distribution. Something YGYI now has access to. I did not like this executive team. But they have finally gotten it right. Global distribution.
See here......https://icelandicglacial.com/pages/global-distibutors
This is why the stock is up.
https://ih.advfn.com/stock-market/NASDAQ/youngevity-international-inc-YGYI/stock-news/79040132/current-report-filing-8-k
On January 10, 2019, Youngevity International, Inc. (the “Company”) entered into an exclusive agreement with Icelandic Water Holdings hf. (“IWH”), an Icelandic public limited company (the “Exclusive Agreement”). Pursuant to the Exclusive Agreement, for an initial term of three (3) years (and any extension), the parties agreed to an exclusive marketing partnership for the cross-promotion of products with dietary supplements (including CBD) and other products which may be jointly developed. During the term of the Exclusive Agreement, the parties intend to jointly develop and market new products, including dietary supplements and ready to drink CBD products, children’s drinks, pet products and coffee products. Pursuant to the Exclusive Agreement, the Company has agreed not to promote other bottled water products and IWH has agreed not to promote other supplement products. IWH also agreed to promote the Company’s products to its customers using e- mail direct marketing at least twice a year.
Interesting interview with the CFO...Youngevity says it has sold $400,000 worth of its hemp-derived cannabidoil products in the past three weeks.
https://www.proactiveinvestors.com/companies/stocktube/11616/youngevity-international-reports-hempfx-products-pull-in-400k-in-three-weeks-11616.html
Under $5 as I write.
Volatile day.
So YGYI could just be getting warmed up?
Nothing would surprise me.
But I don't think there is any doubt this is about hemp, cannabis, CBD or anything else you want to call it.
If you think this is about something else, I am not sure what it could be, unless you think investors are bidding up the stock 33%.
Those are not investors. Those are day traders.
This a peripheral play off of the pot stocks.
And this just confirms it...
https://seekingalpha.com/news/3391803-another-cannabis-high-flier-youngevity-international-plus-23-percent?app=1#email_link
But they issued 2 press releases touting their entry into the hemp CBD market.
I think this is a low float play riding the coattails of TLRY NBEV and others.
I don't think this is sustainable.
But it maybe it will be a catalyst for a higher low. That would be nice.
If anything it should increase investor awareness of the coffee division and direct selling division which are legitimate businesses.
Not saying the CBD market isn't legitimate because it is and it ties in well with direct selling.
Day traders.
It is the $TLRY affect.
"Coca-Cola takes a plunge into coffee with a $5.1 billion Costa deal."
Well YGYI is in the right market. Coffee, and Hempfx.
The stock's volume has improved recently so even though it is small solace, I think it is now on a lot of traders radar screens.
The thing is, it is just traders.
Investors should come next.
But I also think the company has a few more things up their sleeves.
I just wish Wallach wasn't the CEO. If only for the fact after 7 years the stock languishes.
Maybe it can go higher, but he needs to find investors, and he hasn't done that.
After 7 years of non-performance, the "bagholders" sold long ago.
This could turn out to be quite different.
What happened to those 10,000 shares?
I think the overhang is slowly being eaten into.
Volume. So far I think today is the 3rd highest volume day of the year.
Volume precedes price.
Low float stock.
This can and should be higher sooner rather than later.
It has issues. But they may be about to finally put things together.
All the stock needs now is a couple of institutions to take a little interest, and then it's off to the races.
And the thing is, Youngevity already has the platform set up to do extremely well in this market.
This could get interesting.
I'm all in.
The cannabidiol (CBD) market is estimated to grow by 700 percent by 2020.