BrewBilt Manufacturing Inc (BBRW)

[JohnnyThundersLAMF]

The Brewbilt "buyback" lie...

June 30, 2020
Jef Lewis, Chairman and CEO, stated, “We are putting our money where our mouth is. We have had a very strong 2nd quarter ending June 30, 2020.This buy-back completes our note holder debt-reduction, consolidation and equity value increase. The BrewBilt share buy-back, in addition to our dividend program is a preferred way to return cash to our shareholders and relieve the dilution produced during the merger.”

August 12, 2020
“On June 30th, the company put out a press release discussing buying back around $1.5 million of your stock, as well as a dividend,” noted Jolly. “What’s the story on that?”, he asked. “We intend to repurchase, through our own cash reserves, $1.5 million of securities in the open marketplace,” explained Berry. “Those securities will be retired to treasury,”

Sept. 14, 2020
The company has initiated the share repurchase program which will continue through December-2020. Upon completion, the company anticipates repurchasing $1.5M in shares which will be retired to treasury.

October 28, 2020
Today BrewBilt Manufacturing Inc. (the “Company”) (OTCPINK: BBRW), announced that the company management, legal team and auditing team have agreed to increase the share buyback from $1.5M to $5M, while its revenues continue to expand.
Jef Lewis, CEO, stated, “I am sensitive to the shareholders who want information on our share buyback program. The share buyback is in progress, and we will be increasing the buyback up to $5M through 12/31/2021 in order to repurchase more than 70% of our float. This buyback in conjunction with expanding revenue will assure a more concrete equity floor for our shareholders.

Nov. 23, 2020
Jef Lewis, CEO, stated, “The Company repurchased 70,025,000 common shares and returned them to treasury on November 20, 2020. This represents more than 3% of our issued and outstanding shares. We anticipate a successful share buy-back considering the trajectory of our revenue for 2021. At the moment our projected buy-back of $5M represents more than our market capitalization of $4.2M, which may allow the Company to push the stock price up while repurchasing the shares.”

December 17, 2020
"...we will maintain a more aggressive share buy-back first quarter of 2021."
The company will finalize the share buy-back obligation of $5M in the first quarter 2021.

March 04, 2021
"The company continues to repurchase stock up to $5M by 12/31/2021."

Compare the PR's to reality:

“...the Company does not anticipate declaring and paying dividends to its shareholders in the near future.”
10-K Page 12

Issuer Repurchases of Equity Securities
None.
10-K Page 13

I think I found what they did. In addition to a play on words, they also used some creative accounting.

The 8-K from November 23rd states…
“On November 20, 2020 the Company returned to treasury 70,025,000 common shares of stock in value of $140,050 at a price of $.002.”

Yes, on the open market the value would have been $140K. Brewbilt stock has a par value of $0.001. $0.001 x 70 million shares is $70,000.

The 10-K Statement on pages 21 & 22 lists $70,000 from Common stock converted to preferred stock.

From page 44 of the 10-K…
“On November 20, 2020, Mr. Lewis converted 70,000,000 common shares at a price of $.0018 per share into 54,000 Preferred Series A Shares at a price of $10 per share. The conversion resulted in a loss of $414,000 which was recorded to the statement of operations.”

So it seems like Brewbilt was just playing word games and chose to take a $414,000 conversion loss (billed to the shareholders) to keep up the illusion of a share buyback when it was just the CEO converting common to preferred and then returned, not retired, them to treasury.
Obviously these will just be converted back to common and dumped on the market in the future.

Don't forget that a share buyback wouldn't even be legal under Florida law anyway...
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