Celsius Holdings Inc (CELH)

[Toxic Avenger]

No one is going to take over a company with $5.5 million in liabilities and only $1.7 million in assets, IMHO.

Here are some important highlights from the last filing before the company became a non-filer.

"In August 2010, we engaged a consulting and advisory firm with experience in the beverage industry, to explore strategic options. In April 2011, the Company replaced the previous advisor with Catalyst Financial, LLC, a full service investment banking firm, to advise the company on strategic alternatives, including a potential sale of the Company. To date, the Company has not received any offers for either additional financing or a potential sale transaction."

"In July 2010, we entered into a $3.0 million loan agreement with CD Financial, LLC. The loan is due in July 2012. Interest was set at five percent per annum and paid quarterly. As of March 31, 2011, the outstanding debt was $2.0 million and the remaining $1.0 million can be drawn by the company upon request. This loan is secured by all of the assets of the company."
(current balance is the full $3 million).

"In September 2009, we entered into a $6.5 million loan agreement with CDS Ventures of South Florida, LLC. The loan is due in September 2012. Interest was set at 700 basis points over one (1) month LIBOR and paid quarterly.On March 10, 2010, CDS converted $4.5 million of the convertible note into common stock at the fixed exercise price of $10.20 per share.The outstanding balance under the loan agreement as of March 31, 2011 was $2.0 million."

As of 12/31/11, the company owes CDS $4.5 million, which based on the above, is all due in the next 6 months. What will happen when they can't pay that off is anyone's guess, but CDS has a valid claim on all of the company's assets, it appears to me. I'd be careful with the market cap already at $8 million.