Bebida Beverage Company (BBDA)

[Whiplash_Investor]

REVERSE SPLIT TIME!

Moving to a new company is not a reverse split. In fact, his Update makes it clear that reverse split will not be on the table at all.

Now, the effect of moving to a new NYSE company with a new symbol does not mean the mechanics that look like parts of a reverse split are not present. To be on NYSE, he will need audited fins for the BBDA business, a high enough PPS (I think $4/sh, not sure...that is for NASDAQ, but NYSE?), a high enough revenue (I think that might coincide with the $10M required to be a 1934 company, but not sure), meet minimum number of shareholders, and a smaller share structure. The current share structure can't support $4. Even if his mkt cap increased to even 5 times sales of $10M, that's $50M and 2.5B shares (assuming OS were equal to AS) calculates to a PPS of $.02. To get to $4 would require a stock swap of 1 share of Bebevco for 200 shares of BBDA at best in my opinion.

The good news is the accompanying bad effects of an RS will be avoided entirely. Who knows, but perhaps even DLR will be rolled into the new company, putting the trademarks under full ownership. It does sound to me that he is trying to consolidate past companies, but that's just my impression. We'll see.