HIGH PERFORMANCE (OTCMKTS:TBEV) Tires To Stabilize
Yesterday the stock of High Performance Beveragas Co (OTCMKTS:TBEV) managed to avoid registering another red session closing at $0.0024 for a gain of 4.35%. During the trading day the ticker moved to a high of $0.0028 but failed to maintain such prices.
For now TBEV is keeping its gains from last month trading at ranges last visited in March. On September 5 the company’s High Performance Sports Drinks should become available for purchase on Amazon.com so the hype around the stock could continue. The problem is that the company is just starting to generate revenues having completed the first 60,000 bottle test run of its drinks at the end of August.
Although representing a pivotal moment for the company this may not be enough to offset the numerous red flags surrounding TBEV. At the end of April the financial state of the company was quite dire:
• $308,010 cash and total assets!!!
• $4.12 million total liabilities
• Zero revenues
• $283 thousand loss from operations
Out of the reported liabilities $2.18 million consisted of senior convertible notes while $1.56 million was listed as derivative liability. With so much convertible debt a certain amount of dilution was to be expected. What took place between March 20 and June 18, however, was simply devastating. Over 2 billion shares were issued and 1.1 billion of them were priced at just $0.0005. The fact that these shares saw the light of day just months after TBEV implemented a 1-for-10 reverse split makes the situation even worse.
Even you are really excited about the potential of TBEV‘s drinks, in a recent interview the CEO of the company made it clear that he believes their products to be far superior than the ones offered by The Coca-Cola Co (NYSE:KO), PepsiCo, Inc. (NYSE:PEP), and Monster Beverage Corporation (NASDAQ:MNST), you should still be careful. The possibility of even more discounted shares should not be underestimated. After all, TBEV did increase its authorized shares from 2.5 billion to 5 billion.
