After tomorrow, they should only have $310,000 worth notes that could convert, unless they took out more notes in Q4, which seems unlikely especially since they've talked about possibly being profitable in Q3, plus all the customers and revenue they said they have.
Two of the notes, $125,000 each, mature on 7/13/2023 and 9/6/2023, with a fixed conversion rate of $0.06. I divided that to make up for the 1: 300 split last year to get a conversion rate of $0.0002. $250,000 divided by $0.0002 is equal to 1.25 billion shares.
Another note for $60,000 is due 5/20/2023. It converts at $0.105. I divided that by 300 to get $0.00035. That would be 171,428,571 shares.
That $425,000 note that was due tomorrow has a fixed $0.18 conversion rate, divided by 300, and I got $0.0006, which should be 708,333,333 shares.
If I add up those shares up, it would be 2,129,761,904 shares.
If you look at how many shares were added to the OS yesterday, 6,206,931,427 (2023-03-27) minus 4,332,301,835 (2023-03-01), that would be 1,874,629,592 shares added.
Plus, add somewhere around 465,000,000 that were sold today, that would be approximately 2,594 billion shares.
Somethings not quite adding up, especially since the shares are selling between $0.00098 and $0.0001.
Another possibility is that the company is taking advantage of the Equity Purchase Agreement that they have with Mast Hill, that allows them to buy up to $5 million dollars worth of shares at 90% of the market price, essentially dilution. but also funding. It's not quite exactly 90% as best as I can tell as they have layers of terminology to get to the exact purchase price.
But in this case, it seems like they would be buying shares at an approximately 10% discount and then selling them fractionally higher right away. That doesn't seem to make sense.
"Item 1.01 Entry into a Material Definitive Agreement.
On January 25, 2022, BrewBilt Brewing Company (the “Company”), entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Mast Hill Fund, L.P. (“Mast Hill”). Pursuant to the Purchase Agreement, Mast Hill has agreed to purchase from the Company, from time to time upon delivery by the Company to Mast Hill of “Put Notices,” and subject to the other terms and conditions set forth in the Purchase Agreement, up to an aggregate of $5,000,000 of the Company’s common stock. The purchase price of the shares of common stock purchased under the Purchase Agreement will be equal to 90% of the “Market Price” as defined in the Purchase Agreement. Each purchase under the Purchase Agreement shall be in a minimum amount of $25,000 and a maximum amount equal to the lesser of (i) $500,000 and (ii) 200% of the average daily trading value of the common stock over the seven trading days preceding the delivery of the applicable Put Notice."
"In connection with the Purchase Agreement, the Company issued Mast Hill a five-year warrant to purchase 170,000,000 shares of the Company’s common stock at a price of $0.003 per share (the “Warrant”), and entered into a Registration Rights Agreement with Mast Hill under which the Company agreed to file a registration statement with the Securities and Exchange Commission covering the shares of common stock issuable under the Warrant and the Purchase Agreement (the “Registration Rights Agreement”)."
Bottom line is there simply isn't enough detailed information from all parties to try and figure out exactly what is going on. I still think it's the existing notes converting. I'm just taking logical guesses as to what is at play.
For me, it's the long term revenue potential that keeps me here. I was hoping I had timed the end of the era of reverse splits, but having an OS over 6 billion shares is a bit much, so at some point the share structure has to adjust.
But if they're growing like a weed like they suggest, and the hospitality contract is on the horizon like they suggest, then I'd prefer a reverse split anyway if they indeed have great revenue and a contract to tell us about. That would make a reverse split immaterial in my opinion.
Just hoping the revenues are a beast like they suggest. We should know by next week.
Just my opinion; not investment advice.
