The toxic debt holders are locked down? that's a good one the guy who got the 22mm shares at $0.00008 is not going to sell. HAHA.. Please. That $600K he made I am sure is already in an office shore bank account - right where the rest of the buyers money will be in a few week.
It might be easier to to buy these shares. Just find out the swiss bank account of the debt holder who just converted at $0.00008 and just wire him you money.
High Performance Beverages Company – Watch for the Toxic Debt Conversions – Should a Small Investor Dump These Shares – Likely!!!!
If you own shares of this Company, you need to be educated on what’s happening on the balance sheet and relative to debt conversions. This could be a perilous situation, so be careful. But, it’s your money – your decision.
Here are our thoughts and opinions on High Performance Beverages (TBEV):
1) Those who own these shares should understand the share structure of TBEV and the pending debt conversions.
2) This is a dangerous situation for small investors. We predict this will end very badly for the small guy. The deck is really stacked against the small investor. Probably too risky for all but the highly experienced. Consider dumping this if you own it. Invest in something with a better share structure and less (or no) toxic debt. TBEV has a lot of it!!!!
3) We believe it may be difficult for common shareholders to make money holding these shares, expect perhaps as a very short term trade. Be careful here. Understand the risks, which are substantial. However, if the company hits the right distribution, the rewards could also be substantial.
4) We highly recommend share holders read the recent SEC filings. The filings are confusing, but if you are going to own this you need to read in its entirety. There is a wealth of information in those filings. We view the filings as very scary for common share holders.
5) Auditor Resignation – Well…..maybe there’s a good reason for this, so maybe we will let this one slide. But, you be the judge.
6) Doubling of the share count! – The company just filed to increase the authorized shares from 2.5 billion to 5 billion. Anyone who owns this stock, or is considering buying it should ask why? As is stated in the SEC filing it is to allow conversions highly toxic convertible debt. It’s just a fact. Those shares are come at you. Watch out!
7) Lender receiving 264 million shares to cancel out a $21,764 convertible toxic debenture. That’s a price of $.000082496. Come on really? Today that stock is worth $633,159.12. That’s return of 633,158%. Am I the only one who thinks there’s something wrong with this situation?
8) About as Upside Down as a Balance Sheet Gets – $308,000 in cash sounds good on the surface for small company. But, consider the $370,000 of accounts payable, the $2.2 million of convertible debt, and the note payable for $7,000. The ugly reality of the $2.2 million of convertible debt is that the company can’t simply just write a check to pay it off even if the Company had the money, which they don’t, it’s going to convert into millions of shares. Those shares will be coming back at you.
9) Shareholders might survive these conversions if the company hits a home run on distribution. Could happen, we hope it does and we wish the company good luck.
10) Terms of the convertible debt are difficult- We only list a few of these, there’s simply too many to consider in this short report format, but it’s all outlined in the SEC filings.
April 30, 2013 note for $60,000 – This note converts at a 65% discount.
The October 10, 2013 note for $48,000 has provisions attached allowing the lender to purchase eight additional notes for $22,000 each. All of this converts at a 60% discount to the average price during the 25 trading days preceding conversion. There’s even rights attached to purchase additional shares at very low prices.
January 8, 2014 note for $75,000 – This note may be converted into common stock at $0.0001. February 11, 2014 – Another $75,000 that can convert at $0.0001. February 25, 2014 – Another $22,000 that converts a 40% discount.
March 31, 2014 note which apparently defaulted, which included penalties of $42,000 allowing the holder to convert $55,400 in the common stock.
Notes on April 1, 2014, June 3, 2014, June 4, 2014, June 6, 2014, July 2, 2014, August 27, 2014 for several hundred thousand additional dollars, all of which has highly toxic provisions and convert at very steep discounts.
So many more notes. Too many to list. Many with similar difficult terms.
If the company hits a home run during product introduction and distribution then all the shareholders will survive. If they don’t then it likely won’t turn out too well from common holders.
Just our opinions – You are certainly free to form your own. After all….it’s your money.
We are pulling for this company and the management team. Big opportunities on the beverage industry with strong growth in certain sectors.
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