Well I'm gambling that we could get a 5x or 10x run simply on the sales from the new BrewHaus in Nevada City over the summer, along with the increasing sales from retail stores, bars and restaurants and the return of the bull market which should be no more than 5 months away from my perspective.
Now if they do a surprise reverse split and put out news that shows the hospitality franchise deal fell through, then I very well could get stuck with shares. That's why it's a lottery ticket play to me.
But I'm a believer here because the hospitality deal makes logical sense to me. If BRBL was going at it alone to open a bunch of microbreweries, they might be able to slow-grow with one new microbrewery per year, each one providing the funding for the next.
And if the hospitality company wanted to launch 40 microbrewery locations, they'd have to pony up big money and long delay times to source all the equipment they would need to get it off the ground, without having any brand name to assist along the way like they get with BrewBilt.
But a partnership is like the best for both parties. They both get to scale much quicker which means a lot of new revenue can flow in much quicker as well, even if they are splitting it. If they had a construction crew in both Florida and California, each refurbishing a location into a microbrewery, I don't see why they couldn't create a new location in each state every 3 months.
I say that time frame because my assumption is that they will just retrofit an existing hotel restaurant into a hotel microbrewery. The restaurant/bar infrastructure is already in place. They mostly would just have to add dozens of taps for beer, change the design to feel like a microbrewery and do a bunch of marketing.
So maybe they could add as many as 8 microbreweries per year. That would be a ton of new revenue that both parties could starting splitting right away. I doubt each retrofit would cost more than $250,000 to $500,000 per location and if each location brings in $1 million in annual revenue, they could be profitable with each location by the end of their first year or two of operation.
It's not like microbrewery franchises are a new concept, but it feels like a deep-pocketed investor wants to come in and become a dominant player in the space. That's what I'm betting on even if it is a long-shot gamble.
Just my opinion; not investment advice.
Bullish