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Re: Deep Space post# 36640

Monday, 07/16/2012 7:51:59 PM

Monday, July 16, 2012 7:51:59 PM

Post# of 80868
Deep or anybody, (with their cash flow issues) is it possible that they have simply been using this 10% to revolve cash for the supplements side of the biz?

When deal was made mp was in desperate need of cash (IMO maybe even more desperate than present).
If you had a brand with limited exposure (when deal was made; a deal for $250k plus 10% royalty isn't "that" bad.....especially when you don't have to take on any further risks or time.

((for all we know they did something stupid like I did with my biz once when times got real bad- I had an asset that I was asking $20k cash and had offers of $15 to 17k and I ejected the offer.....then the ohhh sh!t happened and I ended up selling asset for $8k....problem was in experience and I did not understand the true value of what I had and was to busy focusing on capitalizing rathan factoring risk as well. So I turned down an offer 20% less than I wanted and in turn within 6 months lost an additional 50% for a total loss of 65%)) things change and young business men make major mistakes when they don't have or listen to guidance.

Just saying this deal could have happened with very similar situation. A decent deal was offered and they turned it down....then sh!$ hits the fan and that was the only deal left with few
Days to go till the end....the only option left on the table?

Now if this were the case I could see them saying no royalties to date as the put all money back into company...how else could they keep up with cash flow at the small margins they have while at the same time having growth and demand of 400%? It could NoT have been pure dilution because at those low pps days they would have had to dilute another 1 billion shares.

At the end of the day that 10% would still be better than 25% if you compare money wasted on the toxic debt which was in excess of 75%(my guesstimates calculations) interest they were paying via toxic debt...

To conclude this thought, once they are cash flow positive (which is close if they aren't already) this deal looks absolutely pathetic....but remember this is hindsight.

I think that at the end we will only have more $ coming in than anyone imagined....especially if they go for the pps push to .05 to .10 or more....it would end up being one of the reasons I would continue to hold some shares even longer as their is even more money to be made within existing assets than we have been told.