{"id":780,"date":"2013-01-24T08:58:00","date_gmt":"2013-01-24T08:58:00","guid":{"rendered":"\/?p=780"},"modified":"2013-03-25T20:14:34","modified_gmt":"2013-03-25T20:14:34","slug":"dethrone-royalty-holdings-inc-otcdrhc-squished-post-promotion","status":"publish","type":"post","link":"\/articles\/dethrone-royalty-holdings-inc-otcdrhc-squished-post-promotion\/","title":{"rendered":"Dethrone Royalty Holdings, Inc. (OTC:DRHC) Squished Post-Promotion"},"content":{"rendered":"

\"DRHC_chart.png\"Yesterday Dethrone Royalty Holdings, Inc. (OTC:DRHC<\/a>) slipped and slid over 46% down to a close of $0.055 at the bell. A round of promotions was launched last Monday that ran for only a couple of days but still managed to bring the stock price down. <\/p>\n

We covered DRHC<\/a> on the day following the pump. Even while the $55 thousand promotion was still fresh, the stock closed down on the next day. A more drastic drop followed, then DRHC<\/a> simmered for a while, trying to bounce back. Yesterday seems to have sealed the deal, as DRHC<\/a> dropped to roughly 66% from its pump peak.<\/p>\n

The company came out with several press releases this week but they seem to have had zero effect on investor confidence. DRHC<\/a>‘s name may lead some to think this is Dethrone Royalty, Inc. – a different separate entity, manufacturing MMA apparel, founded by Nick Swinmurn who previously ran the successful Zappos business. DRHC<\/a> on the other hand was known as Exclusive Building Services, Inc. until the summer of 2012. A wholly owned DRHC<\/a> subsidiary was renamed to Dethrone Beverage, Inc. as part of a licensing deal under which DRHC<\/a> gets the right to use the Dethrone apparel maker brand to produce and market alcohol-free drinks.<\/p>\n

A merger deal with Dethrone Royalty, Inc. described in a letter of intent filed by DHRC obviously didn’t go through and the company settled for licensing the name only. DRHC<\/a> will have the right to produce and sell soft drinks branded with Dethrone Royalty over a period of 5 years. The troubling part is, per the contract the license can be rescinded unless Dethrone Beverages can churn a minimum of $3 million in sales over 2 years starting from the date of the contract, April 2012.<\/p>\n

The last available financial report of DRHC<\/a> contains some underwhelming numbers as well:<\/p>\n