HIGH PERFORMANCE (OTCMKTS:TBEV) Approves New Reverse Split
Despite some delays back in September High Performance (OTCMKTS:TBEV) were able to launch their High Performance Sports Drink line of beverages. The company even reported that all of its products available on Amazon.com were sold in just 48 hours while also being listed as Amazon’s #1 Best Seller in their nutrition category.
When the company finally launched its products investors were beyond excited. The stock of TBEV soared up the chart and climbed above $0.0023 per share. If you take a look at the chart however you will see that the positive momentum disappeared rather fast and since then TBEV have been sinking lower and lower down the chart. Even the $5 million equity line that was revealed on October 9 pushed the stock in the right direction only for a session or two. After crashing by more than 12% last Friday the ticker currently stands at $0.0007 per share.
While it is true that TBEV may have finally began generating revenues this alone is not enough to address the plethora of red flags that surround the company. Let’s start with the latest 10-Q report. It covers the quarter ended April 30 and contains the following numbers:
• $308 thousand cash and total assets!!!
• $4.1 million total liabilities
• ZERO revenue
• $283 thousand operating loss
With the announced $5 million commitment over 24 months from the private equity group GHS Capital LLC the company may have sufficient capital to meet its needs. The terms of this deal have not been disclosed however and it is extremely important for investors to know if any discounted shares are going to be issued.
In order to understand the gravity of the situation let’s remind you that back in February TBEV implemented a 1-for-10 reverse split decreasing their outstanding shares from around 2.1 billion to 212 million. As of June, just a bit over three months later, TBEV were back to their initial O/S count with 2.2 billion outstanding shares. In August the company was forced to increase its authorized shares to 5 BILLION. At the end of April there were nearly $2.2 million in convertible notes and the resulting dilution has been simply catastrophic.
Despite announcing that they have not taken on any new convertible debt in 2015 and that four convertible notes have been retired recently a Schedule 14C statement filed today has revealed that as of October 30 there were 4.3 billion outstanding shares. The purpose of the Schedule 14C was not to disclose the staggering increase in the O/S – it actually informed investors that a new 1-for-100 reverse split has been approved. That is right, two reverse splits have been approved in less than a year.
Without any current numbers about how much convertible debt is still left there is simply no way of knowing if the O/S won’t start growing after the split once again. TBEV were supposed to file their annual report by the end of October allowing investors see some more up-to-date information about the financial state of the company but instead a notification of late filing was submitted.
It should be obvious that TBEV is a dangerous choice that demands extensive due diligence. Take into account all of the serious red flags and adjust your trades accordingly.
