Hangover Joe's Holding Corp. (fka HJOE)

[thesmalls]

Dr. Oz goes after PLN on product claims and endorsements

been awhile since i have posted on this board but the credibility of HJOE's claims that PLN damaged their business were dismissed aggressively and with venom. however, it appears that HJOE wasnt the only company that had this type of issue

i just viewed the video and went through the back and forth documentation from the Oz Show and PLN over the claims and counter claims. long story short - they accused PLN of using Oz' likeness to promote products and these products did not have in them what was claimed on the bottle. sound familiar?

they have the VP of PLN on video bragging about using Oz and his likeness to sell products and the show and then have those products tested to determine if the products have what they claim. they dont. he confronts PLN. they threaten him with a cease and desist. and he continues - because it sure looks like he is right when it comes to verified claims. this is simply amazing that they were that brash.

this goes to the heart of the HJOE/PLN case - fraud/incompetence. they mislabled, mispackaged, lied about ability to package, etc. looks like Oz did a lot of the legwork for credibility and competence. i dont know how the lawyers at PLN are playing that but that could certainly be used as "evidence" and/or support for HJOEs similar claims.

go to this link to see the show and supporting documentation:

http://www.doctoroz.com/episodes?page=2

and scroll down to the 5/1/15 show (original air date). "Dr. Oz Investigates Online Scams Using His Name to Dupe You"

recently the case against the company from HJOE to PLN went to mediation (the case against the owners of PLN personally were largely dismissed). this has to be VERY good for HJOE's prospects in getting their case settled/mediated. maybe this is what has spurred the rash of buying last week.

with the convertible debt largely reduced and currently stalled - if the company were to settle the PLN suit favorably, the payoff from the insurance company would be quick and HJOE could eliminate the remaining convertible debt, give instant credibility to their original derailment they claimed was caused by PLN(in 2012 they did close to $1.5MM on the recovery shot alone before the energy shot existed), and give them sufficient working capital to further the rollout, do some more traditional advertising, and possibly thrown $250-500K to a buyback.

with the current run - that would buy back considerably fewer shares than it would have a week ago but it would be a strong sign to the long term investors who have continued to buy throughout the massive dilution.

for those who are new - AS was increased to 5BB earlier this year (voted on late last year) and on last count was 1.7BB OS.

they provided very rough guidance of $5MM in sales in 2015 and reaffirmed that two months ago to a $3-5MM range based on Korea and a national retailer coming online. PO from Korea is due this week and first shipment is expected to move out early June. they are featured on a show on FYI channel that is airing 6/4/15 in which Larry The Cable Guy specifically talks about the shot in the airing of the show (he confirmed that on his FB/Twitter feeds).

the price was hammered down by a rash of convertible debt taken out in late 2013/early 2014 and more in late 3Q14. unfortunately for teh company, they were not able to get ahead of this debt and it came due prior to getting Korea/national retailer closed/cash flow rolling in earnest.

i am expecting $250-450K in revenues for 4Q14 when they announce based on a soft rollout of the energy shot in 3Q14 and new production and old inventory of recovery shot being able to be sold. TCA had a large portion of the recovery shot inventory tied up under a separate agreement that they finally resolved around 3Q14 as well that the company was then able to start selling that inventory. they went away from the old bottles with The Hangover movie characters on it to the new ones without and those are the ones you have mostly seen in pics on their SM feeds in Walgreens and such in NOLA and in Vegas.

if the price continues to move forward and a stronger base is created, the necessity of a R/s to provide liquidity for remaining convertible debt is reduced dramatically. further, if their attorneys can leverage the OZ show coverage/evidence of fraud/incompetence as support for their own case - that could force a quick settlement in favor of HJOE.

i was aware of the mentioning of PLN on Oz but had no idea how dramatic/damning the claims were against PLN. again, this should bode well for HJOE in their current case against PLN that was sent to mediation by the judge.