International Spirit (OTCMKTS:ISBG) Slips Despite News
International Spirit (OTCMKTS:ISBG) (formerly known as FIMA Inc) was brought back from the dead at the beginning of the year when the management team announced that they are preparing a merger and a change in the business plan. The company was previously in the real estate business, but its efforts led it nowhere and plenty of investors saw a light at the end of the tunnel when some new people took the helm and promised that they will turn FIMA into a serious contender in the alcoholic beverage sector.
The new management team seem to be trying hard. The company name and ticker symbol were officially changed in April and a couple of brands were acquired about a month later. Yesterday, about an hour before the opening bell, ISBG also announced that they now have a majority stake in Cavoda Vodka which is quoted to be the first ultra premium vodka packaged in an illuminating bottle.
Some research will show you that this is big news. The Cavoda brand does seem to be established and, as members of the management team point out, it’s been endorsed by quite a lot of celebrities.
Despite this, the stock showed some signs of hesitation. It was doing well enough throughout the better part of Tuesday’s session, but as soon as the announcement hit the wire, it stumbled and instead of closing in the green, it finished the day with a 25% loss at $0.013 per share. This may seem strange at first, but once you take a closer look, you’ll see that investors might just have one or two things to be wary of.
For one, many people are excited about ISBG‘s new business plan at the moment, but so were Top Shelf Brands Holdings Corp (OTCMKTS:DKTS)’s shareholders at the beginning of the year. Back then, Alonzo Pierce, DKTS‘ CEO and ISBG‘s Chairman of the Board, was telling them that the Besado tequila and the Dziaq liqueur were going to be a huge success for their company, but just several months later, he sold the brands to ISBG. The year-to-date losses for DKTS amount to 87.5% at the moment.
And while acquiring established brands and promising big revenues in the future is all well and good, it’s always better to see some actual facts and figures. Unfortunately, ISBG can’t show us any solid facts and figures. In fact, they can’t show us any figures at all because they haven’t filed any reports since the annual one for last year.
The latest financials are now more than six months old and they present the company’s situation back when it was still struggling to get its previous business plan going. Investors jumping in at the moment are pouring money into a company they know very little about. And that’s a bit of a worry because basing your investment on promises alone is never a good call. Especially when you consider some of the promises that have been made in the past.
If you get back to DKTS and Mr. Pierce, you’ll see that on February 6, he assured Top Shelf’s shareholders that a Form 10 will be filed before the end of the first quarter. This didn’t happen.
But does it mean anything for ISBG‘s future success? We’ve yet to find out. Being cautious, however, might not be such a bad call.
