Replies to post #6567 on Omni Health Inc (OMHE)

[BubbaInSC]

GINORMOUS RED FLAG

Weren't you just saying "kaboom"

Sounds to me like VTCQ gave away too much when signing a contract w/ said international distributors.

Meaning, even though international retailers may be growing overseas - the international partners are making the money - and VTCQ USA is making a much, much smaller revenue from basically wholesales to the international distributors. That being said,
those international distributors should have placed orders into vtcq usa by now, right? The numbers should be released in the next week or so. This is where the rubber meets the row, buddy!![/b]

When I did the interview with Paul there was a question about how the financials should be recorded for the overseas partners. They had been ordering products from Vitacig US which then placed orders with the manufacturer. It seemed it might be more efficient if the partners could order direct from the factory but this would require different accounting. This issue would be amplified with new product offerings so I suspect they need to either negotiate a royalty arrangement or some other mechanism for VitaCig US to be properly compensated as well as new commission structuresfor the new product lines. With new products, it would seem Paul has the leverage here which he may not have had for just VitaStiks.

[BubbaInSC]

GINORMOUS RED FLAG

So, basically the exponential growth of international retailers is only benefitting the international partner's top and bottom lines.

And VTCQ USA has to settle for smaller profit margins on reduced wholesale prices to the international partners for volume buying.

This is not good. VTCQ obviously gave away too much;otherwise, they wouldn't be trying to renegotiate a bad business deal to begin with.

Lastly, financials come out in a week. These international partners should have place significant orders in to meet the supposed demand overseas, correct? This is where the rubber meets the road folks!!

PPS will either go up again, or this puppy is headed down lower.

Kaboom or kaplop....

When I did the interview with Paul there was a question about how the financials should be recorded for the overseas partners. They had been ordering products from Vitacig US which then placed orders with the manufacturer. It seemed it might be more efficient if the partners could order direct from the factory but this would require different accounting. This issue would be amplified with new product offerings so I suspect they need to either negotiate a royalty arrangement or some other mechanism for VitaCig US to be properly compensated as well as new commission structuresfor the new product lines. With new products, it would seem Paul has the leverage here which he may not have had for just VitaStiks.