1812 Brewing Company Inc (KEGS)

[Zotron]

Ace, i agree with your numbers, but i disagree that you think Toms 1.8 billion shares upon conversion do not figure into the market cap.

Lets assume an offer is made to acquire the companys common stock for $100 million dollars. If you assume the 450 million shares o/s is the true number, each share would be worth .22. In this scenario Tom would recieve nothing for his 1.8 billion shares. Not likely. Tom most certainly would convert his preferred shares, making a total of 2.25 billion o/s. Each common share would then be worth .044. Toms 1.8 billion would get him $80,000,000 or as the 8k states, 80% of the company.

Bottom line is the 100,000 convertible preferred B shares must be accounted for in calculating the PPS. Just as the Convertible preferred C shares have to be.