1812 Brewing Company Inc (KEGS)

[Howyadoing]

"Why use the word "toxic"? Proof, please."
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Call it what ever you want , but in the end it has and always will be a huge burden for any stock to overcome.

1) Tom sales his series C shares for 2.7 million dollars , yet he decides it's in the best intrests of the SWVC shareholders to broker a deal with Cornell for 1/2 million . Hmmm scratch head??? Wouldn't you think he would know that taking on this loan from Cornell would only drive the PPS down?

2) Cornell could've filed this week to convert their 60 million share warrents in a "cashless conversion" and have 20 + million shares of commons that they might have all ready sold on this last pop to 2 cents , And thats just the door prize for being the banker!
Thats over $300,000.00 that Cornell may have already pocketed since the deal was made on November 30, 2007
Hmmm , there was 30 million shares that entered the O/S this last week , could 10 million be from CEOcast IR contract and the other 20 million be the "cashless Warrents" ??

3)Cornell gets 10% apr on the loan amount plus $35,000.00 just for servicing the loan!
And you can bet on the fact that all of this will drive the PPS down very low , so that they can convert their .5 million worth of debitures into many millions of shares . (its floorless with a default of .001)
Why else would the company be putting 1/4 of a billion shares a side for future conversions , just from this loan.
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From 8K:

(e) Reservation of Shares. On the date hereof, the Company shall reserve for issuance to the Buyers 225,000,000 shares for issuance upon conversions of the Convertible Dentures and exercise of the Warrants
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And of course the biggest loop hole:
From 8K:
From Section 8
(f) Voluntary Adjustments By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company
http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=5587548&Type=HTML
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Last week the spin was " cornells done"
This week the spin is "Oh, come on guys/gals , Cornells not that bad , we've just got to get used to it" !!

Tom better get his act together soon or there won't be many investors that will want to come to his show!