Replies to post #50 on Aqua Vie Beverages (fka AVBC)

[Bird of Prey]

Be glad to DM!

A. What assets would a suiter be willing to pay for?
ie. the bottling formula,process, or distribution network, BRAND recognition, intangables such as elliminating competition (only kidding).

the bottling formula - might be worth something, if the General Public is buying all that can be made, someone might take an interest in the formula.

process - I forget if TG patented this or if it is even proprietary. If it is and or he did then same as above.

BRAND recognition - My first thought is ROFLMBO, but if it flies off the shelves there is something to be said for a value being placed on the brand as well.

Eliminating... - perhaps all of the exisiting shareholders might band together and make an offer to TG to eliminate HIM from the picture!

B. What strategy would a suiter employ to achieve ownership. Would it be to obtain 51% of the shares to gain control, or outright ownership.

Here is where the real difficulty resides.

#1. Too many shares outstanding already. The company has no real assests to speak of and most shareholders would not "cash in" unless the offer were above their original purchase price. I can't see anyone paying 50 to 100 million for the company at this point. Even Rosie is only willing to spend 39 million!

#2. TG has structured this stock so that he can be bought out only when he chooses to be bought out. If someone were to try and buy up 51% of the OS they still wouldn't have the voting power to control the company. All of the power is in the preferreds. No matter what the stock does (up, down, RS or whatever) TG retains control of 75% of the voting stock. Unless he sells his preferred you can't get the company. What price he wants is an unknown but I'll venture it is much higher than 100 million.

David Weed
aka the Bird of Prey
www.warp-drive.com

[Long]

IMO, no merger or sell out is in the near future. I think the suggestions are only conjecture of what would be better than the current situation. IMO, the only assets of value AVBC has is its hydrator formulas and any other product lines developed, and the artwork on Hydrators. I dont know if their antiseptic preservative free process is proprietary, but if they created it, they should have been franchising it for the past several years to fund their Hydrator launches. I could see one of the big boys buying the formulas or in a partnership type arrangement, i.e. commission to AquaVie for each case sold, but why pay more for the company? The big boys would handle the marketing, distribution, production, financing, and everything else. Seems like something they would have pursued after the first NYC launch when they needed production, financing, and distribution. Personally, that is the direction I would have gone, but I do not hold preferred shares, etc. here.
I recall a PR saying AVBC needed $20 million to open its own bottling plants, two in the US I think. I think TG wants the whole enchilada and considers selling or franchising the formulas as taking a back seat.
AVBC is not as successful today as TG expected in the PRs two years ago, but I think he will continue in the same manner until he succeeds in getting it to market or the cash flow runs out - not in the near future.
Obviously they will be in a better position for financing and partnerships if they can boost sales to a profitable level.