A going concern has 2 options when they go public. Tequila Distinguido has a product which has been in operation for years now. They are, it seems at least, a low-mid level premium tequila manufacturer with limited distribution (so far). They sell Tequila, they have cash flow enough to promote large events with little comeuppance. The money it appears is not in EA, which is a newly formed US distributor, but in the product manufacturer as it appears.
Tequila Distinguido needs a legit shell into which to go public, but they arent large enough to lucratively IPO, hence the reverse merger. Emperial Americas is the new US distributor and the 'shell' into which the TD market value is being channeled.
As TEMN was a real estate holding company who didnt know A44 from elbow, they found it to be more profitable to sell the shares and liabilities to EA, who has not yet filed with the SEC, but has completed the 8k. Investor hub pumpers declare that 90 days is the timeline into which financials of the new company need to be issued.
As a legit company will IPO, and established small companies see more opportunity in a reverse merger ... TD and EA will want to 'own' their shares by changing the stock symbol to something new and unique and likely splitting the float at somepoint.
After some study Reverse Splits are VERY common with reverse mergers as the issuance of the initial float wasnt specifically created with the dilution of TD and EA in mind.
A reverse split is well within the realm of possibilities with TEMN. Theyll neen a custom unstigmatized symbol and share price which will provide a national exchange (nasdaq, Amex) qualification.
Ive seen your vids, Kick A, I think youve done your securities homework. How likely do you see a Reverse Split coming?
"which is a newly formed US distributor" ~
Just to let you know, Emperial Americas, Inc has been around for several years, around 10. Even their website is registered on whois.com over three years ago.
So nope, this is not a "newly formed" company by any respect and the company has their own distribution network ~ complete with Millions of dollars in inventory (Yet another asset of Emperial Americas, Inc).
The four cases of Tequila Distinguido in the picture (link below) is over $2000.00 in product. Imagine the value of 4000 cases in a Houston, TX warehouse. (Asset: 4000 X $500 = $2,000,000)
The company morphed from Joel Cotrearas' "Valle Importers/Exporte" company back in 2002-2003 that makes Emperial Americas, Inc almost 10 years in the business, plus all the years as Valle. Not to mention the 170 years it took the Contreras family to fine tune the receipe!
A whole lot of Tequila Distinguido has been sold by these guys over the years, and they must have thousands of loyal customers, how else would they pay for an Indy Race Car? (FYI: an Indy steering wheel costs over $85,000+ by itself!).
The sales are due to Tequila D being a far superior product compared to the other heavily promoted name brand products. Quality always wins... and Tequila D has it, hands down.
I think it tastes great... it's like sweetened water when put against any other tequila I have ever tasted!
Can't wait until their Broken Barrel Bourbon hits the distributorships!
Not sure where you get your information jett_rich but you may want to find a new source, especially if you want to know the real facts about Emperial Americas, Inc.
Oh, sorry, to answer your final question... not going to happen.
It would be financial suicide if they chose to, instead it appears they have already chosen to buyback shares in the open market to reduce the float, somehow they knew 60% of the float has been bought? Hmmm... what CEO cares about that, unless he is actually participating in the buying of said float?
The share buyback is a move that will give them a NASDAQ listing faster than we might think!
Talk about creating a clean, unstigmatized shell!
Although,in being honest with you, TEMN is really not too bad sentiment-wise. At least what I've read thus far; message board posts by previous shareholders seem rather positive and filled with excitement.
A slow, yet steady share buy back is their ONLY viable option if they want to remain a public company for more than 6 months. IMO
"Buy the Dips" Emperial Americas and Victory Partners... I know I'll be buying 'um!
...............Continued from previous post. Lots of info here!
Did they do the proper filings, yes.
Did they really pay over $475,000 for a shell to be 100% clean without any financial liabilities to the new company (EA)? Yes, it's all in the 8-K.
Is the company releasing audited financials? Yes
Did the company hold other promises like unveiling an Indy Race car? Yes
Is the company updating shareholders? Yes, on new website link as of Monday.
The list goes on...
"they found it to be more profitable to sell the shares and liabilities to EA, who has not yet filed with the SEC"
They have already put out in their 8-K, if you read it, that the company comes with no financial liabilities. That is why the "Shell" costs so much money! If it had "Baggage" it would have been worth less than $60,000. Just sayin'
Got a good Reverse Merger here... and I'm buying shares left and right!
See you on the NASDAQ!
"The money it appears is not in EA" ~
Tequila Distinguido is Emperial Americas, Inc http://trademarks.justia.com/companies/emperial-americas-inc-642279/ ~ If Tequila D wa not Emperial Americas they would have already sued them for Trademark infringment.
Joel Contreras is the founder of Tequila D, Valle Importers/ Exporters and is now the EA officer responsible for product production.
This unique business relationship is set up exactly as DEO produces, distributes and owns Jose Cuervo Tequila, a less "distinguished" brand IMO.
The Mexican government allows Tequila companys to be purchased but maintains control over the bottling, and tradition. Basically, it is impossible to start a real tequila company in the U.S.
There are two ways to reduce the float from skeletons in the closet left by the previous company. One, a company can buy back shares until the float is reduced and retire them. Emperial Americas, Inc (Aka Tequila Distinguido) obviously has a stash of cash somewhere. They spent almost $3,000,000 so far since I have been watching this stock. If they stopped promoting Tequila Distinguido for one day and spent money on a share buyback, they could have already bought over 40% -50% of the float. That is assuming they didn't have any money to gas up their INDY car for the INDY 500 (BTW: Emperial Americas owns two Indys, one is a race-day back up).
That said, this company, Emperial Americas, Inc is clearly buying back shares, IMO they have caused the stock to trade like it has a 50,000,000 share float. The stock upticks on $10 trades. Several clues tip me off to the share buying. First off, the accumulation was increasing as the company neared the January 5 filing date for the 8-K.
In addition, the company strategically did not put out the ticker symbol in ANY of their first PR's as a new Reverse Merger company. That alone is a tell tail sign they did not want to interupt a share buyback process, they wanted to "Load Up" before telling anyone the ticker symbol!
See links of first PR's - No mention of the ticker TEMN: If they planned a R/S they would have put out a PR with the ticker symbol front and center, like most pinks do!
Honestly, a reverse split is actually not even bad for real companies like Emperial Americas. So it would not matter if they chose to raise the stock price and maintain the current asset levels. Now, if they started selling the race cars I would worry!
A r/s could be used as a tool to simply raise the share price allowing the company to get listed as a NASDAQ company which requires a $1.00 + share price; all the while maintaining the company's financial strength and price-to-book valuation.
Does Emperial Americas, Inc want a NASDAQ uplisting?
Perhaps... they are in fact filing all the proper documentation directly in accordance with NASDAQ listing requirements. So it is quite feasible. IMO.
"As a legit company will IPO" ~
I would say to that, less "Frugal" companies will IPO and others with DPO or APO will spend their cash elsewhere. This is because IPO's cost about 10x the amount of an APO (or Reverse Merger) with the EXACT same end results.
It is very true that many large cap companies actually want pink sheet listings to save money and avoid Sarbane-Oxley Act costs, how they get there is absolutely irrelevant.
All we really need to know is:
Continued in next post.................