This is interesting reading and was just released today as far as I can tell.
This is the answer to the last question concerning toxic debt.
The Company is evaluating different options to fund it relaunch and will make every effort to minimize dilution when evaluating alternatives, but realistically, any additional convertible debt or stock sales will be dilutive.
Questions from a concerned RMHB shareholder: September 18th 2017
Going forward, are the drinks going to be priced competitive in the market place?
For example: Starbucks Double Energy Mocha drink is a best seller, has 146mg caffeine for a 15 oz can and a 12 count sells for $25. Starbucks 12 oz can, 12 count, in a skinny can called the Refresher has 50mg of caffeine and sells on Amazon for less than $20. RMHB at 120 mg of caffeine for 16 oz has less than the Starbucks Double Shot Mocha. Yet it will cost a person that would like to buy RMHB from Amazon twice as much to get the RMHB product in his/or her hands.
I would say that we will be competitively priced in the market place among beverages that are directly within our category which are mostly the healthier beverages that contain quality ingredients other than caffeine. Caffeine is something to look at but the other more quality and health conscious ingredients are a little costlier and we are now positioning our brand as the “healthier choice” beverage.
Are you going to drop the “energy” name and keep the caffeine?
For example: Starbucks does not label their “Refresher” drinks as an energy drink, they are clever and use the word “Refresher” to set them apart. They advertise Refreshers as “Positively Uplifting Energy”, “Sip in Good, and Give out Great”. RMHB needs to take a page out of their playbook and think about how you’re creating desire for RMHB.
We are currently strongly leaning towards dropping the energy component completely from our drinks. We are moving to position our drinks as the healthy beverage choice with clean ingredients, that are good for you.
Are you going to tell the Omega Truth?
For example: In “Lifestyle, Optimum Nutrition, The Good Earth, Weight Loss”, “Hemp seed oil also exhibits the highest total phenolic content and antioxidant activity compared to all other plant based oils. Naturally occurring phenolic compounds are known to play a key role in reducing the risk of cancer, relieving systemic inflammation, acting as a powerful antioxidant and promoting free radical elimination”.
We are going to tout EVERY benefit of Hemp that we are allowed to on the can and in our marketing materials without getting our hand slapped by the FDA. There is a fine line we must walk when making claims on a product but we are not opposed to pushing the boundaries to position ourselves as the best healthy drink on the market!
Are you going back to the skinny 12 oz can?
We are looking into to going back to the 12 oz sleek can.
Are you going to build upon the solid foundation of some of the drinks you make, or are you going to abort what brought you to this level?
We are going to utilize some of what we have already produced and brought to market if we feel that it benefits our new product and brand. We don’t want to lose any equity that we have already built and we will work to try and maintain what we have already put out to market, but this round we intend to make it even better.
For example: It’s a great idea to also go into healthy drinks with hemp, but don’t drive away the base of consumers you have. RMHB has great products to build upon, you created the wheel, create another and be inventive with the vision of what the consumer desires.
Have you done a market analysis regarding?
...Are the current energy drinks associated with marijuana, which could imply a looser individual, or the opposite, of a person that is carefree, with freedom? Who is your target consumer?
...Is the word Hemp associated with marijuana or is it associated with high in Omegas?
... Again, who is your target consumer?
Yes, we have done some extensive market research including focus groups and high-level evaluations! We have identified key target consumers in our analysis and we are positioning our brand to appeal to the consumer that we feel has the best potential to take our beverages to the next level. I’m not going to disclose at this point who our target consumer(s) is until we have fully executed our strategy, brand and position in the market.
Is the Financing going to be a toxic debt?
The Company is evaluating different options to fund it relaunch and will make every effort to minimize dilution when evaluating alternatives, but realistically, any additional convertible debt or stock sales will be dilutive.
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