Ok. It's time to call BS on some of this hyperbole and clearly misleading euphoric optimism without substance or basis...
First, let's say they have $105M in contracts. What does that mean? Some folks here have claimed they are "already place orders". That's an outrageous comment because it just ain't true. At best they are LOI's to become a distributor with some outrageous sales forecast with which comes no recourse or commitment by the distributor. Second, these "contracts" are both vague and without detail which leads me to believe all they are are boiler plate agreements to sell product as long as it is delivered, freight and duty paid and guarantee of sell through or return of product expense free less anything sold at slim margins for Marani. That's the way distributors work. No distributor is going to front a sale. So here's my big question... how is Marani going to fund the infrastructure, inventory needed and operational resources to fulfill $105M in sales. It's absolute nonsense. Do you know the cost for the cases alone? If you extrapolate the $105M in sales even at an outrageous 50% margin they'd need to front over a million dollars just in cardboard. I know, I buy a lot of it. Freight, import/export fees and duty, actual production, packing, container service, etc... Where's the money coming from? It's all going to have to be up front because no manufacturer is going to do it without the money up front and the paper means nothing to them. They've all been around. No tickie, no washy. Smirnoff is #1. They sold 26 million cases last year with huge marketing and advertising, multiple bottling plants, hundreds of employees and a well know brand actively promoted internationally at significant cost. At 50% margin Marani's claims would represent close to 1 million cases. They don't have the money to produce that, Where's it going to come from. IF, and big IF here, they find a way to sell anything they're going to need start up money and it won't be for $105M in sales it will be for a couple tiny POs from regional distributors. If it's anything of substance the dilution will be tremendous because they will need so much up front money to get rolling it would astonish you. It's a crowded space and they have no brand, advertising, marketing, staff, known inventory or track record to do anything other than promote the stock and sell a couple hundred cases on contingency distribution deals over the course of a year. Then it's over because sooner or later they will have to come clean on the financials and then everyone will know and see all of the above is true.
