Asberry 22 Holdings Inc (ASHI)

[bernardsamuel]

There are a couple of items to look at this morning, plus one more item to review later on when available.
First, let’s have a look at the 8K filing from six days ago that included the company’s presentation at the LD Micro-Cap Conference. Here’s the hyperlink to the presentation:
https://www.sec.gov/Archives/edgar/data/1515718/000151116415000305/vaporhubinternational.htm

The “cap table” slide is interesting, as it has a line for “Chicago Ventures.” Is this Typenex by itself, or does the line include the BofI loan as well – maybe someone can help me out here. Also, the numbers to the right of the dollar figures for the Chicago Ventures and Gotama loans – can anyone figure out what those numbers are supposed to represent?

The financial projection slide is similarly interesting. I’m trying to cross-walk the revenue numbers shown in the slide to the letter that went out to potential equity investors which estimated revenues at $6 million for this year and $10 million for next year. There may be some issue here between fiscal and calendar years. I won’t comment on the bottom line projections for the outer years, but less ambitious numbers might have made for an “easier sell” to the conference attendees. Also, the unique spelling of “allounces” makes one wonder just a little…

Second, let’s look at the e-mail we just got this very morning about the non-dilutive bridge financing:
SIMI VALLEY, Calif., June 8, 2015 /PRNewswire/ -- Vapor Hub International Inc. (OTC: VHUB) (www.vapor-hub.com) is pleased to announce that it has successfully raised bridge financing through the issuance of non-convertible debt. The company received net proceeds of $104,071 from BofI Federal Bank and net proceeds of $184,000 from Typenex Co-Investment, LLC, after the payment of commissions.

"The funds received from Typenex and BofI Federal Bank will help us meet our short term capital needs," said Kyle Winther, VHUB CEO. "We plan to use a significant portion of the funds to expand our inventory which will help drive our revenue growth."
For a further description of the terms of the financings, please see the Company's Current Report on Form 8-K which it intends to file with the Securities and Exchange Commission on or about the date of this release.

This is potentially great news for the company; still one needs to await the promised 8K to learn what sort of interest rate the company will be paying. At some point – though I’ll leave it to the analytical skills of others on this discussion board – dilution would be a better alternative to usury. Given that the effective annual interest rate on the current BofI loan is in excess of 100% per year (I did the math in a posting a few months ago – what you have to remember is that the average principal being borrowed is around one-half of the total principal, given the daily payment mechanism).

So overall, based upon limited information, what’s going on here is bullish for the stock IMHO. The major curiosity is whether and how the bridge financing announced today has any impact on the earlier letter in which the company is seeking $1 million to $5 million in equity financing – my guess is that today’s financing is, as it’s being called, the “bridge” financing until the equity dollars will flow in and cancel out these new loans. Let me close by apologizing for the length of this posting - I hope it's been worth anyone's effort to read.)