American Brewing Company Inc. (OTCBB:ABRW) Blasts Off
Búcha, F.K.A. American Brewing Company Inc. (OTCBB:ABRW) added an impressive 46.15% to its market value yesterday, on an announcement that it has acquired the operating assets of a couple of companies. So what’s the deal with that?
Well, the announcement that the ABRW has acquired the operating assets of four whole other companies has been universally taken as good news. Once it hit the web, said PR drew attention to the company and created a wave of hype that is responsible for the ticker’s ascent.
Unfortunately, as of the present moment, we have no idea exactly what “operating assets” ABRW got its hands on when it acquired New Age Beverages, LLC, New Age Properties, LLC, Aspen Pure, LLC and Xing Beverage, LLC – which is less than encouraging, when you take the time to think about it.
Naturally, such a massive undertaking renders all our previous information on ABRW all but useless, except as a reference to the extent of the resourcefulness that the company’s management has shown to date. Unfortunately, if you are to judge the company’s future chances of progress by its achievements so far, ABRW’s prospect don’t look too encouraging:
- Cash – $151 thousand
- Total current assets – $669 thousand
- Quarterly Revenues – $589 thousand
- Total current liabilities – $768 thousand
- Quarterly Net loss – $288 thousand
Then there’s the fact that the company paid for the acquisition with nearly $20 MILLION worth of its common stock, about a third of which was issued outright, $4.5 million of which is to be paid in the form of a promissory note and another $8.5 million is to come in the form of cash. Perceptive investors would have already noticed that last time it reported, ABRW did not have anywhere near that sort of money on hand. Well, it turns out that “The initial cash payment of $8.5 million will be financed via debt from one of a number of sources that have committed to provide funding at attractive rates.” Said “attractive rates” are as yet undisclosed – which means that they may well end up being attractive to the funders, but not necessarily to the company’s investors.
As it is, there are too many unknowns for investors to even make an educated guess about where this ticker may be headed next. Note well that while the opportunity for profitable trading of ABRW stock may arise in the immediate future, trying to capitalize on it before some more information on the company hits the web will be nothing short of a blind gamble.
