Marani Brands, Inc. (OTCMKTS:MRIB) Promises Revenues Soon
Monday sent the share price of Marani Brands, Inc. (OTCMKTS:MRIB) a solid 49% up. The ticker was already hot, coming out of a 37% green close on Friday and the last session retained the heavy share volume, at 25 million shares changing hands.
The catalyst for the big upward move is quite clear – Mirani announced in a video interview that the company had received ‘verbal approval’ for its California alcohol distribution license. MRIB‘s license status page on the website of the California Alcoholic Beverage Control (ABC) department still shows the company’s license status as ‘pending’. However, CEO Margrit Eyraud reassured investors that the company received verbal approval from the ABC department and it’s now just a matter of time until the documents arrive and the change is formally reflected.
Additionally, near the end of the same interview, she also made sure to underline that MRIB expects revenues by the end of the first quarter of the new year. It remains to be seen if those plans will come to fruition. MRIB‘s latest available report covering the quarter ended December 2013 contains some details that have the potential to put more frowns than smiles on investors’ faces.
Over the last two months of 2013 the company extinguished two convertible notes. MRIB issued 30 million free trading shares at $0.001 to clear a note in the amount of $30 thousand. A month later, in early December, the company issued another 28.3 million free trading shares to clear a note of $62 thousand, setting the conversion price at $0.002 per share.
The company still receives heavy media exposure from Money TV even though there is no disclaimer of any compensation for it. With nearly 60 million new cheap shares issued and all of them free trading, the recent price climb may give the parties who obtained those shares serious incentives to unload, and there would be no blaming them if such a situation develops, given that the average profit for the former noteholders will be twentyfold.
It remains to be seen whether MRIB delivers on its promise of revenues in their next quarterly and when exactly its license status changes from ‘pending’, considering verbal approval was announced.
