High Performance (OTCMKTS:TBEV) Is Headed For Triple Zeros
High Performance (OTCMKTS:TBEV) managed to halt its descent for two whole days at the end of last week, but now it is tumbling down again, hard.
The announcement that TBEV has finally launched its High Performance Sports Drink™ was universally regarded as good news. And how could it not be? It means that some revenues will finally be coming TBEV‘s way, which is a significant step towards making a profit. How far will said revenues take TBEV in the foreseeable future remains to be seen, of course, but that’s another matter, which has little to do with the continuation of its downfall.
As we said last time, the reason behind TBEV‘s slide is to be found elsewhere. A good place to start looking is the company’s financial reports – more specifically, the notes and debt section.
Last time the company reported, it showed some pretty horrible red flags in that specific section. As of April 30, 2015 $2.18 million of TBEV‘s current liabilities consisted of convertible debt payable. The fact that TBEV‘s number of shares outstanding has grown from 212 million to 2.2 BILLION between February and June 2015 is proof that noteholders have taken advantage of the ticker’s elevated state at the time, and as a result investor value has suffered greatly. And how can it not suffer, when about half of the company’s debt at the time had a conversion price of $0.0005?
Even more bad news hit the web on Sept 23, with the filing of TBEV‘s newest 8-K. Evidently, TBEV has entered into a settlement agreement with Centaurian Fund, L.P. and agreed to issue a new note for $240 thousand, to replace an old one for the same amount. This new note can be turned into shares at a 50% discount from the lowest closing bid price or closing sale price during the ten consecutive trading days immediately preceding the date of conversion.
Investors should take such details into consideration, as there are clear indications that they have had a profound and catastrophic effect on the ticker’s movements in the past and will most likely have such effects in the future as well.
