Jammin Java Corp (JAMN)

[smallcapvoice]

From JAMN

The company can only use this forum to help clarify previously stated statements. Anything that gets close to disclosing new information or can be seen as material, the company is required to report it in an 8K or within its quarterly/ annual filings. That being said, there were a bunch of questions you guys have sent to us privately or asked in the forum. Here are the answers the company can talk about.

- An image of the company's Recyclable RealCup can be seen here http://marleycoffee.com/onelove-recyclable/. These will be hitting shelves at the end of July in both the US and Canada. We are very excited about the launch and the difference it'll be able to make.
- Brent is a co-founder of NCS&V and was VP of sales. He and another partner bought the business and revamped it from a local company to a national company.
- The company always believes that if we build our business, then shareholders would be rewarded with more value. In the case of the Ironridge, management made the decision to hedge the company's position last year so it wouldn't expose the company to any additional downside risks and further true-ups. That turned out to be a smart decision based on how volatile the stock was in December. We believe in our stock and so far have always believed it will go up. Senior management has taken a large portion of their compensation from the stock itself so its aligned with its shareholders. This means if you get diluted, we do too and we're in this for the long haul. From an upside perspective, the company made a great decision by negotiating with Mother Parkers to extend its credit facility so that it didn't have to raise equity capital and dilute shareholders. This shows how confident Mother Parker's is with the company and shows how management cares about every bit of equity dilution for its shareholders.
- Every company has to raise capital in order to grow its business. We have to make a decision at varying stages to either raise it via debt or equity based on the valuation premise of the company. At this time we think debt is the best way, but its a balancing act based on valuation. Debt in the open market for a company with our profile isn't as cheap as bank debt (which at this point is difficult to acquire), but it might be cheaper than equity. The decision making process for us is to look at what cash we need and where we'll be as a company. I think we've made our business plan very very clear for shareholders. We have a great tasting product that we believe can revolutionize a 10B capsule a year market. Once we get our products on shelf in July and we market it, we believe we can generate turns off shelf. A 1 unit per store per week per sku turn is worth about $6.7M within our distribution. A 1% share of the market is worth at least 45M just for our single serve division. Knowing that we have a great tasting product with a brand name behind it, we ask our shareholders, don't you think we can turn 1 more product or at least capture a 1% share because we now have a recyclability? And that's just half the business.
- With respect to accounting adjustments, they happen from time to time, especially with CPG companies and how it treats revenue recognition. All of the accounting treatment that Mr. Toevs discussed were discussed in the 10K with the "Reconciliation of February 2015 Financial Projections to Actual Year-End Results of Operations" and approved by our auditors. We try to limit adjustments the best we can.
- The company would be looking at the NYSE MKT and qualify under Standard 2 https://www.nyse.com/publicdocs/nyse/listing/NYSE_MKT_Listing_Standards.pdf, which doesn't have net income requirements. The company would have to increase its shareholder equity as well as its share price, and update its corporate governance.
- For the NASDAQ Capital market look at Standards on page 9 https://listingcenter.nasdaq.com/assets/initialguide.pdf. Though not decided yet, we would want to probably qualify under the "Equity Standard." We qualify for all standards under here except we would need to increase our shareholder equity as well as share price. Again, all of this can be achievable in the next 12-18 months.