HIGH PERFORMANCE (OTCMKTS:TBEV) Gets Demolished After Record Dumping of Shares
Yesterday’s trading was a total disaster for the stock of High Performance Beverages Co (OTCMKTS:TBEV). The ticker opened the session at $0.00155 but by the time of the closing bell it was sitting over 47% lower at $0.001. Throughout the session the unprecedented number of nearly 1.08 billion shares got dumped on the market. Just for the last two session TBEV has wiped more than 61% of its value.
Just two weeks ago TBEV got investors excited by announcing the successful completion of its first 60 thousand bottle test run of its Sports Drinks line. This meant that the company might finally start generating revenues, an extremely important step in the right direction. In our articles, however, we warned you not to take the red flags around the company lightly.
In fact, approaching the stock without doing extensive due diligence is extremely dangerous. TBEV‘s financial state is simply atrocious. For the quarter ended April 30 the company reported the following results:
• $308,010 cash and total assets!!!
• $4.12 million total liabilities
• Zero revenues
• $283 thousand loss from operations
Nearly the entire amount of the liabilities on the balance sheet consists of convertible debt – $2.18 million in convertible notes and $1.56 million in derivative liability.
The dilution of the common stock through the conversion of debt at discounted prices has been plaguing TBEV for quite a while. Back in February, this year, they were even forced to do a 1-for-10 reverse split that left the company with around 212 million outstanding shares as of March 20. Do you want to know how many outstanding shares there were less than three months later? – 2.25 BILLION! And 1.1 billion of them came into existence at just $0.0005 per share. In order to accommodate the future issuance of shares TBEV decided to increase their authorized amount from 2.5 billion to 5 billion shares.
The dilution is simply devastating and it could continue to influence the movement of the stock negatively. As we said, TBEV is dangerous and even if they manage to bounce after yesterday’s severe crash any trades involving the stock should still be preceded by extensive research.
