Zevia was on their shelf and Reed's/Virgels reduced to five rows instead ten rows. The price point with Zevia was huge, $5.79 for Reed's 4 pack and $3.00 for Zevia 6 pack. Ginger ios good but----
6x EBITDA is a complete ripoff. We will demand an alternative valuation and get our attorney involved. It is bound by U.S. listing standards. Greedy banana republic management. The average Ebitda multiple is 8x in the industry for slower growth. The proper price is $20 and we will get it.
By the way, you are wrong on that. That is book loss per share not cash loss. Cash loss is much less.
By the way, one other thing. The EBITDA today does not include necessary capex so last quarter they used cash. THye used $9 MM in 6 months. Cash balance is down to $23MM from $32MM at year end. They need most of that for redeeming the CV. Also the cv holders may get stock at some huge discount price --like $2 in which case, the new price is $2.
Thanks for insight. Unfortunately Oaktree is paying themselves in PIK interest which is accumulating a huge pile of debt. They also granted themselves 65% of the company. PULS had no choice as nobody would lend them money at any price. No upside as dilution to great combined with huge debt=no upside . They need a 30% sales increase just to break even let alone pay off any debt. They may just muddle along for years.