High Performance (OTCMKTS:TBEV) Drops To Triple-Zero Prices
On August 24 High Performance (OTCMKTS:TBEV) completed the first 60,000 bottle test run of their High Performance Sports Drink and announced that the product should become available for purchase on Amazon on September 5. The PR helped the stock of the company reach a high of $0.003 at the start of September.
The much anticipated date came and unfortunately TBEV‘s drink was nowhere to be found. As a result the stock got crushed wiping nearly 50% of its value when the market opened this Tuesday. Yesterday it seemed that the company might bounce but in the last hour of the session the positive momentum disappeared and TBEV closed at $0.0009 for a loss of 10%.
After the end of the trading day the company finally published a new PR explaining what happened. Apparently the results of the last test for FDA-compliance were not ready on time and this caused Southeast Bottling to delay the shipping of the product. The new shipping date is set to September 11 with the drinks becoming available for retail sale on September 18. Will this be enough to push TBEV back up the chart?
Investors might be reluctant to jump right back in immediately after suffering through the severe downtrend from the last couple of sessions. Not to mention that TBEV is surrounded by red flags. The company might finally start generating revenues and the CEO is convinced that their products are far superior that the ones offered by some of the juggernauts in the industry like The Coca-Cola Co (NYSE:KO), PepsiCo, Inc. (NYSE:PEP), and Monster Beverage Corporation (NASDAQ:MNST) but for now the financial state of the company remains extremely dire. The latest quarterly report contained the following numbers:
• $308,010 cash and total assets!!!
• $4.12 million total liabilities
• Zero revenues
• $283 thousand loss from operations
In order to fund their operations TBEV had to take on a massive amount of convertible debt with nearly the entire amount of the reported liabilities consisting of convertible notes and derivative liability. The corresponding dilution of the common stock has been devastating and back in February the company had to perform a 1-for-10 reverse split in order to bring its outstanding shares to more manageable levels. Unfortunately what followed the reverse split was a real nightmare – in less than three months over 2 billion shares came into existence with over half of them being priced at $0.0005 each. Even at the current price the people who received those shares could still reap massive profits. Not ot mention that the authorized shares were also increased from 2.5 billion to 5 billion.
With the new sales date TBEV might be able to recover some of their losses but the risks around the stock should not be underestimated. Do your own research and adjust your trades accordingly.
