Marani Brands Inc. (MRIB)

[Matthew Berg]

Just thinking about why the last financials were so late besides than the fact they were so bad. I think there was another reason as well and far more telling.

In January 2015, MRIB received a new container ostensibly the redirected shipment planned for Brazil (tongue firmly in cheek). Besides the tax stamp nonsense, Margrit went public on Money TV citing a significant increase in US demand for product. This phrase has been a recurring theme for Margrit and MRIB over the past years. I think though, this last instance caught Margrit in a real web of lies and one of the most blatant lie to date.

The financials just released clearly show there was no increased demand and in fact there was a significant decrease. To exaggerate about events and promotions, throw around the term "national reseller", claim pleasant surprises coming, logistical problems, etc... those are grey areas. But to go public with a direct indicator on sales that was blatantly misrepresented is quite a different situation. It's equivalent to giving fraudulent guidance.

When MRIB released those numbers it clearly marked a major deception that puts into question all of the other "stories" surrounding Brazil not to mention committing a material fraud in making the statement. Even in the past her comments about increased demand could be sidestepped but not this one because of the shipment redirection for reasons that were clearly untrue and the fact that MRIB was way overstocked on product in the US already having received the June container plus $100K in existing inventory.

IMO, this represent Margrit's most significant deception and I believe a material fraud in representing sales that did not in fact exist. In this case, once the financials were released the lie and deception became fact with no excuse. Caught in her own web of lies with a loose tongue. Not a good combination.

That said, the good news is other than the abysmal numbers coming out in two weeks, if they do, the same representation has not been made so maybe the financials will be on time. Doubt it but we will see.