1812 Brewing Company Inc (KEGS)

[WallStreetFamily]

Swvc Business DD #e4

1: Email from Ludlow Capital

http://www.ludlowcapital.com/

Hello ....., thank you for your interest and inquiry. Yes, I have been in contact with SWVC about a NYC investor conference and they do have a "strong interest" in conducting one. Schedules are being hashed out, but wouldn't look like one could be thrown off till at least late Feb, or March at the earliest. We are still working that out.What caught my eye on the company was that Hackett's has been in operation for almost over 100 years, and being a brick and mortor retail chain i found that of great interest. SWVC wouldn't be paying us anything for the coverage, but would most likely pay for the venue for any live show, most likely at The Grand Hyatt Hotel in midtown Manhattan. I will let you know once I have additional information. Hope to meet with the company sometime in Feb in the city.

Ludlow Capital
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2: Email from CEO

Let me respond to that this way:

(1) I do not consider a reverse split as the way to address dilution (... Having said that, that doesn't mean one would not be done in an attempt to increase PPS for something like an AMEX, NASDAQ small cap, etc listing for example)

(2) I will seek to increase share price, which means intrinsic vale per share outstanding must be increasing. Despite the recent dilution, I feel that is definitely happening. That is, more "stuff" with value is going into SWVC faster than shares have been issued......
Mathematically that would be expressed as follows:

(Intrinsic Value) / (Shares Outstanding) = Price Per Share

So to make PPS increase I can: (1) increase "IV" faster than "SO"; (2) decrease SO and keep IV flat, growing, or reduced at a slower rate than the reduction of SO, or (3) a combination of both.

ALL options will be explored. If I can find a mechanism for, say, option (2), I certainly will evaluate that. Typically, one needs cash flow to do that. Right now, cash is being consumed at Hacketts/WiseBuys so they grow. That is OK because it helps "IV" .....

I hope this helps.

Tom
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