I think you are right. Not enough shares to reverse-split to Nasdaq. Plus, they fail all requirements to be included on the Nasdaq. I think an equity infusion, which would mean significant dilution, is the only way to meet capital requirements and get the share-count high enough to reach a minimum of $1. But I'm sure they'd want to be higher like $3 or $5. And since the cash is pretty close to the long term debt, I feel like enterprise value is a better way to look at it, which a simplistic rounded-off calculation for that is $2.5M. And at 40% ownership, that's about $6.25M valuation at 6 cents. So I think the true cost of each store is $1M each at this time, and that's pre-dilution which would be significant. So, sadly, I think it's expensive yet also interesting. But at least dilution with cash. They haven't been getting a return on their investments yet, so that cash may be squandered. We shall see.
BTBD also has issues, and that's already on the Nasdaq. So, I have no idea what concept they have in mind. I don't know if you can rule out another brand coming in as a reverse-merger, thereby getting 6 new stores it can convert. That gets convoluted and just pure speculation IFF it can't be ruled out. You also need to meet certain revenue requirements from the past year or so to be on the Nasdaq, which they fail that requirement too. To my understanding anyway. Which makes me wonder if they intend to bring another brand with X units into the fold as well somehow. I just don't know. I'm not a shareholder, but curious to see what unfolds.
Of course, whatever BTBD does to shareholders here, they do to themselves. Unless they will be one of the outside investors. Then they'd be diluted less than shareholders here. I just don't know. BTBD isn't growing any of its own brands yet. They've only bought some stores. They also made an investment in Noble Roman's (NROM), another penny stock on the OTC. I do own 130,000 shares of NROM. That chain struggles too. So, the mgmt.'s ability to grow brands hasn't been proved yet. Lots of unknowns. But it is interesting. I'm very curious to see what the final verdict is. BTBD seems to like to grow inorganically from what I can tell, but can't seem to grow profits. Yet... They don't bring investor confidence to the table, sad to say. But I do like the way they shake things up. And in NROM's case, the way they are harassing my mgmt. over there for not performing.
