Bravada International Ltd (BRAV)

[Jammin1]

Indeed. It's interesting how people can interpret things so differently. If you're fearful, you'll likely find things to be afraid of.

To me, in reading this line:

Revenue from
product sales ... is insufficient to open new stores on an accelerated pace and capital will be
needed to develop large expansions and new product rollouts in 2012

the key words are "accelerated pace" and "large expansions". In other words, to really grow aggressivly, like his very ambitious wish/goal of 15 stores by year end, he would need capital beyond that from operations. But even then, it could come from shareholder loans. Dilution seems to be a last resort, and only to expand a proven business model more quickly.

In other words, dilution is not needed to open just a couple of new stores, but it might be used to very aggressively open lots of new stores in a short time. However, if you listen to the interview, you'll see that there are other restrictions to such fast expansion, like building up supplier networks to maintain responsive service. I get the feeling that operational infrastructure buildup will be more of a bottleneck to fast expansion than cash flow/capital needs.