Iconic Brands Inc (ICNB)

[scottgogolf]

Tommy, lets try these numbers. Let's say Bellissima sells 39,000 cases per quarter (3,000 cases per week times 13 weeks). I'm not sure if Rich can fill that many orders per quarter, I think he said something about being able to supply 30,000 cases per quarter, but hey, lets go with it. I've seen people post that a case works out to $54 in revenue ,which makes sense ($60 per case less CB's 10% cut). $10/bottle also makes sense as retailers are selling for 18.99 and you have the retailer and the distributor both making money.

39,000 cases/qtr X $54/case = $1.944MM of revs/quarter. Multiply by 4 quarters and you are at $7.776MM annually. For valuation purposes, use a 5X sales multiple (higher than alcoholic beverage industry average). This puts a value on Bellissima (not ICNB) of $38.8MM. To make the math easy, let's give the brand an extra 20%+ kicker (call it a buyout premium) and make it a $50MM valuation.

As I explained last night, each $100MM of valuation is worth 2 cents per share to the ICNB investor. Using this valuation, ICNB stock would be worth a penny at 3,000 cases per week. Considering where sales are today, much lower than 39,000 cases per quarter, sub-penny is probably the right place for this stock to be trading.