11 Jan Dethrone Royalty Holdings Inc (DRHC) – new promo almost here
On January 9, 2012 DRHC announced they had hired Circadian Group for Investor Relations.
Circadian Group which is run by Ryan Troup is quickly making a name for itself by being linked to some tickers with prolific paid promotions. Circadian Group was the IR for the two most recent StockMarketAuthority (SMA) promotions SANP and PFNI.
This has to automatically put DRHC in the conversation as a possible future SMA pick.
Hints have been dropped that DRHC will be promoted and the promotion will come from an outside source (not the company IR). Indications are that the promotion will start some time next week which means that DRHC might fall right in line with the next BestDamnPennyStock promotion which is schedule to be announced on January 15th.
Stay tuned, but definitely keep DRHC on your short list for a future paid promotion. The odds of a paid promotion for DRHC starting as early as next week are extremely high.
We originally put DRHC on our list of tickers to watch for a future paid promotion way back on July 12, 2012. See our Original July 12th report here. On September 1, 2012 we provided an updated research report here. Much has changed in the way of the original share count numbers, but I'll address the new share count numbers near the end of this post.
Learn more about DRHC and their beverage company at their flashy website here. Originally the filings indicated that the Dethrone clothing line could to be a part of the DRHC umbrella, but this is no longer the case. That would have offered something 'real' and respectable to DRHC, but instead, as of the most recent financial report DRHC has yet to achieve any revenues making the company all flash and no substance ... the perfect combination for a pump&dump shell.
DRHC is a sport beverage company only now with a focus on bringing in athlete endorsements.
Since September 1, 2012, DRHC has signed letter of intents with 5 different Professional Athletes (October 1, 2012)
We have entered into letters of intent with four professional sports personalities, Jonathan Quick, Demarious Thomas, Aldon Smith, Pablo Sandoval and Matt Mulson, to represent us by endorsing us and our products. If they execute agreements consistent with the letters of intent, they will be compensated by issuances of restricted shares of our common stock.
Progress has been made with those letter of intents and new professional athletes have been added to the mix
As of December 14, 2012, we have also entered into contracts with several professional sports personalities (Jonathan Quick, Aldon Smith Haloti Nagataq and Taj Gibson to represent us by endorsing our products. All contracts cover three years and require us to issue an aggregate of 3,500,000 restricted shares of common stock over the lives of the contracts plus up to an additional 1,800,000 contingent shares based on performance criteria. The Company is also negotiating an agreement with the agent who introduced the sports figures to the Company and may issue an additional 750,000 restricted shares of common stock to that agent and has letters of intent with additional sports figures (Pablo Sandavol, Matt Mulson, Kevin Shattenberg and Mike Goldberg) for endorsement agreements. There are no assurances that agreements described in letters of intent will result in executed contracts.
DRHC also signed a toxic debt Note agreement with an anonymous 3rd party. The Note is for $100,000 and bears interest at 20% per annum. We are not told when the Note goes into default, but when that time does come, the Note holder will get to convert the Note into shares at $.001/share giving the Note holder 100,000,000 free trading shares of DRHC stock. The anonymous Note holder also got 2,500,000 restricted shares just for signing the agreement (valued at $375,000 as of today's close). If the Note goes into default the Note holder will also get all 56,250,000 shares currently owned by Toby McBride and Michael Holley (the two DRHC officers). Talk about a toxic Note. Was borrowing $100,000 really that difficult that McBride and Holley had to pledge that much to get the deal signed? This has insider enrichment scheme written all over it and since we don't know when the Note will go into default those 100,000,000 free trading shares could be a part of next week's paid promotion.
On November 15, 2012, the Company entered into a Senior Secured Promissory Note with an unaffiliated party under which the Company received a one-year loan with a principal balance of $100,000. The loan bears interest at 20% per annum with interest payments due quarterly. In addition, the Company issued 2,500,000 shares of restricted common stock to the lender and Messrs. Holley and McBride pledged their 56,250,000 shares of the Company’s common stock as collateral. If the Company goes into default of the provisions of the loan, it becomes convertible into the Company’s common stock at a price of $.001 per share (or up to 100 million shares). If a default occurs, the lender will have the ability of becoming the controlling shareholder of the Company.
The latest news for DRHC is that they have signed an agreement to be the 2013 Title Sponsor of Texas vs. The Nation to be held on February 2, 2013 at Eagle Stadium in Allen, Texas. Texas vs. The Nation pits top collegiate football players originally from Texas or who played college football in Texas against top players from around the nation.
In consideration for its sponsorship, the Company has given Overtime Marketing SE, LLC the right to purchase 5,000,000 restricted shares of its common stock at a price per share equal to 125% of par value ($.001) or $.00125/share to be paid in US currency at time of acquisition. The shares will be made available for sale upon the following schedule:
1,250,000 shares at the time of execution of the formal Sponsorship Contract
1,250,000 shares 180 days after execution of Sponsorship Contract
1,250,000 shares 360 days after execution of Sponsorship Contract
1,250,000 shares 540 days after execution of Sponsorship Contract
Share Ownership (the best I can figure it)
Toby McBride - 28,125,000 shares (restricted)
Michael Holley - 28,125,000 shares (restricted)
Toxic Financier - 2,500,000 shares (restricted) and eventually 100,000,000 free trading shares
Overtime Marketing SE LLC - 1,250,000 shares (restricted)
Private Investors - 400,000 shares (free trading) with another 1,280,415 shares due to be issued
Seed Shareholders - 37,500,000 shares (free trading)
Professional Athletes - at least 14,000,000 future shares plus possible bonus shares (restricted)
DRHC has at least 37,500,000 free trading shares plus a debt Note with the potential to add an additional 100,000,000 free trading shares into the market. We know a DRHC promotion is coming as soon as next week. There is a good chance it could be the next BDPS promotion or possibly even the next SMA promotion. Keep this one on close watch.