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metrodavef

06/10/14 10:57 AM

#7214 RE: kampman #7213

I may not be able to make the call. Thank you for setting it up. A couple of basic question I would have are:

When they sign up a distributor is product actively flowing or are some of the distributors agreeing to distribute the product in the future. The reason for this strange sounding question is that given the number of distributors and retail outlets signed up, I would have expected much larger case sales (assuming 17000 outlets whereby each outlet sells only 2 cases per month of lemonade would equate to 408k cases sold - some months would see higher case sales and some less so 2 cases is an average). They did a little better than half of that in 2013.

Do distributors actually purchase product from PLSB or does Pulse have to carry the cost until the retailer pays? If there is a mix, what % of distributors actually purchase product from Pulse?

Coconut water: Status of the 120k of cases ordered, have those orders been filled? How much production of coconut water can Pulse afford to produce each month? I'm sure their supplier can produce a ton of it but they have to be paid so monthly production will be impacted by what Pulse can afford.

Are their any pre-orders for the functional beverages? Can the company post a picture of what the re-designed product looks like? What capacity of functional beverages can the company afford to produce each month?

Is Pulse seeking a business line of credit to fund production?

THE BOTTOM LINE IMO IS THAT IF PULSE HAS ALL OF THE DISTRIBUTION LINED UP AND HAS ALL OF THE RETAIL OUTLETS READY TO SELL THE PRODUCT, PULSE JUST HAS TO GET PRODUCT ROLLING THROUGH THE SYSTEM WHICH TAKES CAPITAL. IT SEEMS TO ME THAT IF THE DISTRIBUTION IS IN PLACE THEY WOULD WANT TO FLOOD THAT SYSTEM WITH PRODUCT SO HOW ARE THEY GOING TO RAISE THE CAPITAL TO DO JUST THAT? ARE THEY GOING TO WAIT FOR THE 20 MIL OF WARRANTS TO STEP UP TO FUND IT OR ARE THEY GOING TO DO SOMETHING ELSE?

Based on what the company has said, everything is in place with the front and back ends of a distribution network so what's needed now is plenty of product rolling through that network. They may have to dilute but huge case sales await and the distribution network won't be there forever unless plenty of product is being supplied and sold so that those retailers and distributors are making $ too.

Hopefully I can make it but if I can't thank you in advance :)

Jeff-M

06/10/14 12:00 PM

#7215 RE: kampman #7213

Thanx for the helpful info, kampman; I hope to be able to get in on that call. GLTA.

Navy87

06/10/14 7:11 PM

#7218 RE: kampman #7213

Thanks Kampman for setting up the call. I thought the call was very informative and helpful. Hope you had a chance to listen.