Replies to post #102387 on Hall of Fame Beverages, Inc (HFBG)

[RDG013]

joe, that is not the discussion. I am still not convinced either that they are really setting up a distibution network for the mass sale of the tea.

That being said, my statement holds true that if they are and they do get orders from the Supermarkets, those orders could easily be financed to get the product to the shelves, so stating they have no way to produce if they do get orders is blatantly false.

I am sure you would agree with that.

[sojourner]

HFB is not structured to reward common shareholders. If it were, principals would own millions if not billions of common shares. As it is, principals own no common shares. Principals (Luciano and Ross) do own weighted voting preferred shares in order to give them unchallenged control over HFB and the common-share printing press. This is one of the keys to understanding this penny stock operation designed above all to sell shares.

Key also is that Hall of Fame Beverages, Inc., a typical licensed marketing firm trading on OTC.PK, owns no trademarks/brands and merely holds a revokable license to market brands owned by Primo Products LLC (a Luciano/Ross outfit). Primo Products LLC owns trademarked brands Grand Ma Ma Sweet Southern Tea and Atomic Dogg. The advantage to the licensing arrangement is that costs of sales, salaries, expenses, and losses redound to the public marketing company and hence common shareholders.

Paradoxically, the result can then be such that the marketing company will show large losses even with brisk sales. These losses are of course useful as capital loss tax deductions. In practice, then, licensors (brand owners) and outside distributors can gather the edible wheat kernels and leave the inedible chaff to the marketing firm. This arrangement is fairly common among questionable OTC beverage marketing outfits like HFBG. That being said, it's rather clear that the underlying purpose of HFB is arguably to reward principals by continually raising A/S and selling shares.