Bebida Beverage Company (BBDA)

[Whiplash_Investor]

It is a reverse split in all respects aside from the fact that they're trying to act like it isn't.

There's no -one in mgmt that I'm aware of that is trying to "act like it isn't." Who in mgmt is doing this and what makes you think so?

It doesn't matter that hugely reduced number of shares that current holders will receive will be in another company

Correct, it doesn't, because it doesn't. The value in an investor's account does not change with splits, forward or reverse...not one penny, so it is value-neutral event. So why would anyone care?

I'll tell you why some worry about RSs. When they are perceived badly, there are always three things that are true:

1) The company doing the RS has no, or virtually no, business

2) PPS has death spiralled to $.0001 and No Bid.

3) The company either RS's or closes shop.

These were the conditions for BBDA in 2010. In fact BBDA was at no Bid for 3 months...so live or die decision was made. This is not the case with BBDA now.

When these things are not the conditions, RS's are not perceived negatively, but for what they are ...value neutral. None of the list of 3 are conditions now for BBDA, thus no RS is even needed. The share structure does not need fixing; the market cap does. This will take care of itself as business and transpaency grows with new company. There are NYSE/NASDAQ companies with more shares than BBDA, doing just fine.

...with no assets, the result is the same.

Yet BBDA's assets and all the business revenue/income/people will obviosly be transferred to the new Bebevco, so this is bogus thinking. Only the BBDA stock ticker will be dissolved, effectively replaced by a new one. PPS will be designed to meet the PPS requirements for the exchange it trades on. The OS and the exchange ratio will be sourced from that. The only added value above value neutral is BW;s promise to give every shareholder of BBDA 1.5X more value than what they had with BBDA. He doesn't have to do this.