BrewBilt Brewing Co (BRBL)

[downdraft]

Something has me stoked about the Phase II brewery site. First a quick review for anyone who is new here. Here's the link to the site plan for the Phase II brewery that BrewBilt Brewing has had in place.

https://brewbiltbrewing.com/phase-ii-site-plan/

Somewhere I read it had a 2024-2025 time frame but I always felt there were a couple of roadblocks that had to get worked through first before they could even proceed. The first one is construction loan rates in general. With the Fed having raised interest rates so much in the last couple of years, new business construction has been on hold for many companies. But in the 3rd quarter of this year, construction loan rates started to slowly come down. And with the Fed's forecast this week that they expect several rate cuts next year, it's very likely that construction loan rates will continue to fall, making it more feasible to get a loan if the company wants one.

The other obstacle in play was the development of the road and utilities adjacent to the property. Notice on the site plan that Sutton Way bends to the east on the South side of property. On that map, south is to the right. Up until the last year or two, Sutton Way still bent to the southwest. But a June 2023 Google photo shows that road and utility construction was well underway to change the configuration of the road, likely to accommodate the new neighborhood that's being built to the east of the Phase II brewery site.

The first link below shows and aerial view of the neighbor hood site.

https://www.grassvalleyhomecompany.com/portfolio-items/loma-rica-ranch/#iLightbox[gallery_image_2]/8

The next link shows a view from Dorsey Drive, where it intersects Sutton Way. As of June, the roads were in over at the neighborhood. But until the road and utilities are in place along Sutton Way, there was no way BrewBilt could begin to build out that site anyway. If you look further up the road on Sutton Way, notice the green utility box on the east side of the road. That wasn't there in earlier Google photos. If the link doesn't work, search Google Maps for 396 Dorsey Dr., Grass Valley, CA

https://www.google.com/maps/[@ userid=121].0340352,3a,89.6y,99.75h,90.98t/data=!3m7!1e1!3m5!1s54Nay7ofkEYaf-SxcaikNg!2e0!5s20230601T000000!7i16384!8i8192!5m1!1e4?entry=ttu

But what has me stoked was I was thinking the company might have to come up with $10+ million to develop the Phase II brewery. But it's not like the wholesale beer sales are slaying it yet. What they really need, IMO, is just to get the taproom and/or restaurant/brewseum up and running as quick as possible, as that's where the profit margins are!

Referring to the Phase II brewery site plan, the restaurant and taproom buildings are only 9,000 square feet total. The other 6 buildings to the north, for the brewery and shipping operations, are 61,500 square feet total. So if they were clever about it, IMO, which I think they just might be, they only would have to raise a fraction of the money to build the road, utilities, parking lots and and 2 buildings on the south side.

Since they raised a lot of money last year, rewarding lenders with a small percentage of the taproom net profits, I doubt they would need more than $2 million to get at least the taproom or the restaurant open by spring 2025, just about the same time that the neighborhood to the east should be nearing completion, since the neighborhood roads are already complete.

They might not even need a construction loan if they bring other investors on board. And unlike a brand new microbrewery, BrewBilt can already supply all the beer they need to the new taproom and restaurant. The taproom and restaurant would add a sweet new addition of profits to the company, allowing them to continue to grow. And all of a sudden there would be 2 BrewHaus locations in northern California.

Okay, just dreaming. Just my opinion; not investment advice. I did buy a few more shares this week after thinking about this idea. The full Phase II brewery still seemed too far out of reach but just a new taproom or restaurant seems like something they could pull off if it's in their plans.