Notice how the February 2nd news release frames this pending partnership...
"There are 40 sites projected that would generate $130M in revenue along with continued revenue in commercial craft beer production.”
The way I read it is that each one of the 40 microbreweries could generate $3.25 million revenue, over a undisclosed period of time. I bring this up because it's one more piece of the puzzle that makes me believe that we're far more likely to see a partnership contract in the very near future! That's because it's not like the hospitality company has to come up with $130 million in funding in advance.
My guess is that the funding required will be to steadily build out each microbrewery franchise location. And even though microbreweries can cost $1 to $2 million to get off the ground (consensus figure from looking around the web), these microbreweries should be on the lower end of costs if my premise is correct that each location only needs to have the appearance of the microbrewery since most of the beer could be shipped in large kegs that come from the existing BrewBilt brewery and then the eventual Phase II brewery as well.
If the hospitality company is just refurbishing a bunch of their own locations inside a large hotel, then upgrade costs could be far lower, maybe only $500,000 per each location to rebrand an existing hotel restaurant as a BrewBilt brewery/restaurant franchise location. And let's say that they wanted to crank up build-outs to a dozen+ locations per year to meet the 40 location goal wthin 3 years, then it's not a huge expense for a large hospitality company to fund it even if they're refurbishing a couple at a time. As each location is built-out, the revenues and profits can start flowing right away, making it easier to build the subsequent locations.
Plus, for the time being, the existing BrewBilt brewery should have plenty of capability with the Type 23 license to make enough beer for at least a dozen locations. The new profits from the microbreweries should be enough to serve as collateral for non-toxic debt financing to build out the Phase II microbrewery that they'll need as they grow. 12 acres of property development and numerous steel buildings could cost many millions of dollars ($8-$10 million?) Anyone in the construction industry that would have a better guess for costs?
It just all means to me that this potential partnership sounds very clever and feasible and could lead to very substantial revenues and profits for both parties so why on earth would they not do it! Plus, having BrewBilt Brewing (BRBL) as a separate entity from BrewBilt Manufacturing, that has been clearing their convertible notes from the books, means to me, just my opinion, is that BRBL is a relatively safe stock ticker for the hospitality company and BrewBilt employees, friends, customers and traders to invest their money (if they've done their due diligence, as this is not investment advice!) so they too could clean up if this turns into a behemoth, nationwide microbrewery franchise... which I think it will!!!!
