Rave11
3 months ago
I think you are right. Not enough shares to reverse-split to Nasdaq. Plus, they fail all requirements to be included on the Nasdaq. I think an equity infusion, which would mean significant dilution, is the only way to meet capital requirements and get the share-count high enough to reach a minimum of $1. But I'm sure they'd want to be higher like $3 or $5. And since the cash is pretty close to the long term debt, I feel like enterprise value is a better way to look at it, which a simplistic rounded-off calculation for that is $2.5M. And at 40% ownership, that's about $6.25M valuation at 6 cents. So I think the true cost of each store is $1M each at this time, and that's pre-dilution which would be significant. So, sadly, I think it's expensive yet also interesting. But at least dilution with cash. They haven't been getting a return on their investments yet, so that cash may be squandered. We shall see.
BTBD also has issues, and that's already on the Nasdaq. So, I have no idea what concept they have in mind. I don't know if you can rule out another brand coming in as a reverse-merger, thereby getting 6 new stores it can convert. That gets convoluted and just pure speculation IFF it can't be ruled out. You also need to meet certain revenue requirements from the past year or so to be on the Nasdaq, which they fail that requirement too. To my understanding anyway. Which makes me wonder if they intend to bring another brand with X units into the fold as well somehow. I just don't know. I'm not a shareholder, but curious to see what unfolds.
Of course, whatever BTBD does to shareholders here, they do to themselves. Unless they will be one of the outside investors. Then they'd be diluted less than shareholders here. I just don't know. BTBD isn't growing any of its own brands yet. They've only bought some stores. They also made an investment in Noble Roman's (NROM), another penny stock on the OTC. I do own 130,000 shares of NROM. That chain struggles too. So, the mgmt.'s ability to grow brands hasn't been proved yet. Lots of unknowns. But it is interesting. I'm very curious to see what the final verdict is. BTBD seems to like to grow inorganically from what I can tell, but can't seem to grow profits. Yet... They don't bring investor confidence to the table, sad to say. But I do like the way they shake things up. And in NROM's case, the way they are harassing my mgmt. over there for not performing.
Rave11
1 year ago
Very interesting company. Micro cap. I was brought to your attention by this surprise filing yesterday on my micro cap company NROM:
https://seekingalpha.com/filing/6925306
BT Brands has now been buying my company and may be seeking the same type of control. I would love for them to replace our BOD which is a bad case of nepotism. They've been at the helm since the early 70s and we are still market cap not much higher than yours.
I like the value of BT Brands and your company, as well as NROM. I think all 3 are looking like good value. Maybe all 3 will merge into BT eventually. Some highlights on the filing above:
_______________________________________________
Some excerpts:
1. Item 4. Purpose of Transaction
Mr. Copperud has been involved in the restaurant industry for more than 15 years as an executive of BTB. Mr. Copperud began acquiring and selling his shares of Common Stock for investment purposes believing that the Common Stock represented an investment opportunity. In July 2022, Mr. Copperud discontinued effecting transactions in the Common Stock for his personal account and, in his capacity as an executive officer of BTB, advised BTB to start acquiring Common Stock for the same reason.
2. The Reporting Persons have previously engaged in a discussions with a member of the Board of the Issuer regarding possible financing alternatives
available to the Issuer, including a discussion by the Reporting Persons (and certain of their affiliates) as to possible approaches to refinance on better terms the
Issuerโs $8.5 million senior secured promissory note that bears interest at the rate estimated to be approximately 18% per annum requiring the Issuer to make
monthly payments of $33,000 beginning in February 2023. Nothing discussed by the Reporting Persons constitutes a current or present plan or proposal of the
Reporting Persons (or any of their affiliates) with respect to the Issuer.
___________________________________________________
May I ask y'all's thoughts on the former mgmt. and now your new BOD? I'd appreciate the good, bad, and ugly. Hold nothing back please.
Your units are priced at $500,000 each. That seems a steal. Both you and BT Brands have a strong current ratio. Good cash on the books relative to size. Sleepers for now, but BT Brands seems like they've been aggressive with growth this year after a private placement. They haven't been public very long. I'm interested...
traderjer
4 years ago
All great points to consider. Iโve been involved a long time from BDAV to SAUC to BDVB. This is now an exciting set-up. Re: restaurant closings, a smaller location footprint is much easier to re-stage. More restaurants would be a liability. Re: concept, Bagger Daveโs is a great name for carry-out and delivery, the growth vector in fast casual. Re: Ansley, I know what itโs like when you canโt โget toโ work on your baby. Upon closing he can finally do this. He will have about 11MM cash. He could buy us out or take us with him. He canโt walk away because shareholders have rights and he is a target for lawsuits given his cash position. Shares are limited and Ansley can create a lot of value for himself if he can turn BDVB around. Heโs worked cash flow magic at BDVB while getting SAUC sold. Iโm watching for the next key milestone which is The SAUC deal closing. And also looking for liquidity, with far more shares trading daily.