Replies to post #163789 on Bebida Beverage Company (BBDA)

[Whiplash_Investor]

Yes they know it would cost about $50K/year to audit fins and do SEC filings.

I can't answer why they would pay for a race team given their circumstances other than to speculate that they felt cash to a race team would generate a lot more sales than audited fins would. Advertising product generates sales. Audited fins generates happy shareholders. From their perspective, perhaps they felt generating sales was more likely capable of making both happier.

The interview about team in place to do audits, etc. may have just been hype to sell shares. The more the hype, the less the qty of shares that must be sold to get the funding...sort of a double edged sword of sorts.

I'm suspicious too. I'm not convinced they'll spend all that money to lower OS with buybacks, when they can do it virtually for free with an R/S. They've shown a propensity in the past to do, though I don't think BW was in charge then.

The next qtrly release will be very revealing. It would surprise me to see 250M more shares out to peak out OS, especially at these prices, then later an R/S. If dilution is over (and it could be), they really have a $4M LOC, and they start buybacks, I know I'll be convinced this is going someplace for sure.