wow - and i thought the HJOE board was insane during the dilution phase.
i spoke with Joe Vazquez earlier this morning after we traded messages this weekend. i asked him if the delay was something that could affect the current product that was bottled and ready to ship. there is pre and post testing done. FDA rules have changed the validation/certification process for the post testing. samples have to be sent of sealed, finished production product for 3rd party validation (which is after the original batch is certified/validated prior to bottling). this prevents a company from doing a bait and switch prior to having blend certified 9a company could have the batch certified and then dilute it with water by 30% and then package it under old guidelines).
the issue was in one of three tests completed by an outside lab and they were hoping to have results today so they could specifically state when the existing production run could be cleared and shipped. he told me that either way - they would put out a PR stating the new date or when they expected to get the results back and then ship. but either way - they would put out a PR. he also said that was the primary intent of the PR so i am not expecting anything earth shattering.
he did acknowledge the notes that were converted last week were being sold en masse yesterday. that was somewhat obvious as was stated on here. the usual MMs were dumping and we saw more of it today when VFIN entered into the mix later on this afternoon. now one can argue whether the timing was suspect and the company deliberately planned a launch date around the conversions. however, as could be ascertained by the previous PRs pushing back the launch date (after FDA approval) and then the follow up stating "on or around the 5th" - it seems the company was trying to get the product to market as fast as possible and it was an unfortunate coincidence it coincided with the notes maturing.
it is always a gamble with these companies when toxic debt is around. much like HJOE. the company needs to execute, build cash flow, and retire debt through cash flow and/or traditional financing before the dilution monster hits. there looks to be anywhere from 300-600MM shares that were diluted over the last two days. not the end of the world if this round is mostly through and they are able to restructure debt with more traditional financing that is not toxic. this can happen with initial production run being well received and a second one following up quickly. depending on how the news is received and when the launch date ends up being - we may continue to see dilution that outpaces demand.
i have followed this stock for several months and took a trading position with @4MM shares at $0.0007 and closed it at $0.0019. i then bought back at $0.0012 and closed it at $0.002. i then bought in again at $0.0013 and made several purchases with a basis of $0.0015 and did not sell when it went to $0.0029. at that point, i wanted to see the actual launch go through last weekend. i left the position open through yesterday and today and bought again at the EOD with another couple MM at $0.0009.
i expect it to remain volatile. however, if the launch is only delayed several days to a week and the market/investor base is shown it was a routine delay that neither TBEV nor SBC could foresee - my guess is the demand will once again pick up as the product gets to the market.
Joe could not comment on pre-order sales/numbers nor could he address any financing.
