HIGH PERFORMANCE (OTCMKTS:TBEV) Takes a Big Hit
In yesterday’s session the share price of High Performance Beverages Co (OTCMKTS:TBEV) took a nasty blow and slipped 33% to a close at $0.0012 per share. The company’s excursion out of triple-zero land may prove to be shorter than some expected.
The situation surrounding TBEV is not particularly rosy in the first place and the run that took the ticker back up into double zeroes was not really grounded in any positive material news. TBEV, as we have previously explained, is a pink sheet company, headquartered in a residential house in Arizona, swimming neck deep in toxic convertible debt, which freshly upped its authorized shares twofold.
The company’s last quarterly report contains the following:
- $308 thousand in cash
- $4.1 million in current liabilities
- ZERO in quarterly revenues
- $283 thousand in quarterly operating loss
Those numbers are backed up by some terrifying dilution that took place between March and June. On March 20, 2015 the company had 212 million shares of outstanding common stock. By mid-June that number had grown to 2.25 BILLION. You can pull out a calculator and do the math to see the percentile expression of that. If you can’t be bothered – here’s the answer – just over 950%.
Obviously, at 2.5 billion authorized shares TBEV was running out of space to issue more. The company solved this problem by upping its authorized shares to 5 billion, giving plenty of new room to convert currently existing outstanding debt into.
Yesterday’s 33% crash probably sobered up a few traders and TBEV’s future movement on the chart may not be as violent, no matter which direction the ticker goes.
