Called company(XCHO), it did answer a lot of questions. A fairly lengthy chat.
He said my perceptions of what is going on is generally correct.
1. On issue of CC, not this Q but likely next Q there will be a Call. As Cobroxin was not for sale in the Q reported, so not one this time.
2. Some very good news. I offered to help on financing and he was really only interested in receivables financing. That they were trying to avoid dilution as much as possible. If you think this through what does that mean? IMHO that means they indeed do not want dilution of the stock and they expect a lot of sales and are concerned about cashflow from rapidly rising sales. This is a known good problem but a problem. In that if you sell lets say $5 million order, you do not get the $, then you have to put out the $ to get the product to ship. Receivables financing creates no dilution. Also the officers are helping finance XCHO now.
3. XCHO is not planning much in the way of investor meetings because they are booked up with meetings with distributors and major drug chains. He mentioned an org named MMR and said they had full page ad in their publication and were going to dinner associated with that org in which the VPs of companies like Walgreens, Wal-mart, etc would be. I might be off on the acronym MMR. So they said they are so focused on marketing and setting up distribution right now, it will be a while before a large outreach to investors. He said they think Cobroxin can be a homerun product too (as I think).
4. On Foreign distribution he said Xenacare was interested in doing this on Cobroxin and they are open to do this as agrmnt indicated. Forst they need the country by country approval, as NPHC is working on.
5. Some more good news. They will not wait to next Q to report how sales of Cobroxin are going. They will announce distribution agrmnts as they happen. BTW they will not put up testimonials online as there are some legal dangers in doing so.
5. Also said that they can keep up with large demand as they are set up now.
They have a electronic distribution method which allows them to sell at very high rates, without having to add a lot of people.
6. They are happy with orders so far. Also every distributor they have contacted has been interested in Cobroxin, a positive mkt reaction.
7. They can not announce the price deal with NPHC, but it will be apparent when sales/expense #s come out.
8. There is a long relationship (near 20 years) between the mang of two companies, that is good to know.
So to sum it up IMHO, it appears that XCHO and NPHC will do very well if Cobroxin sells well, which most if not of us think will be the case.
Cheers
