Marani Brands Inc. (MRIB)

[daytraderjoe1984]

How Marani can eliminate any debt they have.

To quote WinnerWinner:

Great job Maggie, sister and brother!!!!
The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements, during the three and six months ended December 31, 2013 the Company incurred net losses of $166,277, and $360,799 for the three and six months ended December 31, 2013, respectively and $108,191 and $126,597 for the three and six months ended December 31, 2012. The Company's accumulated deficit was $26,290,643 and $25,929,845 as of December 31, 2013 and June 30, 2013, respectively. If the Company is unable to generate profits and is unable to continue to obtain financing for its working capital requirements, it may have to curtail its business sharply or cease business altogether. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

If you take in the fact that FINRA has found no discrepancy's with the contracts of Brazil and Dominican Republic, then the $70 Million dollars that Marani can collect from those contracts could easily wipe out the debt they have over the next few years. Now they decided to start with the launch of the American market first. That is fine with me. They have their reasons. This post is for the equations showing how the debt could be eliminated.

Take the two contracts that we know of. Brazil and Dominican Republic. $70 million over 5 years.

$70mil / 5 years = $14,000,000

With 50% up front on each shipment and the other 50% after the product is received, we can see that if all goes accordingly, Marani can eliminate their $26 million deficit in roughly 2-3 years minus operating costs and what not.

Now we know that Marani chose to begin with the American market first. They have their reasons. It is easy to speculate when little information is released. Maybe they do have a great demand. Maybe they are going about marketing their award winning vodka differently from past years and maybe it's working. Maybe they are seeing a nice chunk of revenue to be made with its release first. There are lots of questions we can ask about why they are going about things in the manner they chose.

What we can take from this post is that, hypothetically speaking, if Marani acts upon these two contracts, or possibly have a greater demand equal to that of the $70 million sales that Brazil and Dominican Republic are worth, then they will eliminate their debt and have some breathing room.

They could add more contracts with the on going marketing campaign that Zodiac Brands is accomplishing.



More contracts will add to more revenue and more of the debt being eliminated adding to the share price rising as more PR's are released confirming such news.


This is a nice and focused marketing campaign. They have contracts confirmed and it looks like they have landed more deals in Europe and other areas. We will just have to see how this plays out after the American launch and watch as the press releases confirm positive or negative near future information.

MRIB is doing great things. Do your own DD and take everything with a grain of salt.