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mullimatt

04/08/08 11:45 AM

#348 RE: Trinityz1 #347

IMO, the shares are a kickback for the deal. The 10 million shares minimizes any risk exposure J&G may encounter in the process of distributing Celsius in the middle east.

Further, you negated to comment on the $7.5 million in guaranteed sales over 5 years. That equates to an extra $500,000 in sales per quarter, or $1.5 million extra in sales a year.

You stated: "my guess is that the product ordered wasn't paid for, but rather was also part of the loan agreement somehow perhaps as collateral.

I ask, "why would they not pay for these cans given the fact that they agreed to $7.5 million in sales over 5 years?" I would assume that this 800,000 can order would a portion of that $7.5 million agreement, no?

IMO, the extra volume of sales will more than make up for any dilution that the company had to engage in to make this deal happen. Only time will tell as the market evaluates the worth of this company, but it appears as though this deal is only the start of something much bigger... I imagine we will be hearing about a deal in South America within Q2. Keep your ears open ;)