Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

Top management signed employment contracts in March 2015 which gave them each 60M shares, 30M of which vested in 2014, the remainder at 5-6M/year each. The contracts noted that these shares are not currently available -- but charges are being taken against earnings, indicating that they will be.

The contracts were signed when O/S and A/S were within 3M shares of each other, indicating an expectation of an increase in A/S.

Additionally, approximately 27.3M preferred shares -- convertible into common at 1:1 -- are O/S out of 30M A/S. Many of these are held by management, as they accepted preferred shares to replace their common shares so that vendors could be paid in common shares.

Finally, the 10-Q also says in Note 2 to the financials:

The Company intends to fund operations through equity financing arrangements.

So: there will clearly be dilution, the question is how much.

I am expecting an increase in A/S to 600M or more:

- Between the management contracts and the preferred shares, almost 150M shares are needed.

- Plus, the need to fund operations. 10M shares only brings $300K at today's market value, and as you pointed out, shares are actually being sold substantially under market.