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Ami James Brands Inc (OTCMKTS:AJBI) Is Today's OTC Focus

Ami James Brands Inc (OTCMKTS:AJBI) Is Today's OTC Focus
Written by
Alex Carlson
Published on
July 18, 2016
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Ami James Brands Inc (OTCMKTS:AJBI) has quickly turned into a volume leader on the OTC Markets. This comes as the company has been steadily climbing higher on the back of promo dollars and new press releases. The company is also looking to build and promote itself on the back of Ami James, who is well known in the tattoo industry. They key going forward is whether AJBI can keep the momentum going.Ami James Brands, Inc. is a licensing and brand management company with its core business rooted in the tattoo industry. From apparel and fashion, to consolidating the fragmented tattoo industry, artist and entrepreneur Ami James is arguably the most recognizable face in the tattoo world. The company is based in Miami, Florida, the home of the legendary "Miami Ink" tattoo studio, the Love Hate Social Club.Things really kicked off for AJBI on June 1 when the company signed a Letter of Intent with Yellow Cab Productions Inc. to collaborate on a limited edition "Ami James" collection. Yellow Cab Productions is the owner and the exclusive licensor of "Frank's Chop Shop" merchandise, including caps, hats, t-shirts, and accessories. The company is hoping that Yellow Cab can do the same for Ami James that the company was able to do for Frank's Chop Shop. Frank's Chop Shop hats and headwear are sold at all New Era flagship stores in the United States, Canada, Europe, and Asia. Frank's Chop Shop is a New York institution and lifestyle brand that has been described as "Rat Pack nightlife meets urban grunge."Then on June 28, AJBI announced that it had executed a Joint Venture Agreement for a collaborative limited edition Ami James hat collection with Yellow Cab Productions. Under the terms of the agreement, AJBI and YCP will participate in a profit sharing arrangement where both parties share profits at a 50/50 rate net of all costs associated with each unit. The contract encompasses a three season collection over a period of three years with the ability to do multi-season collections. AJBI will also be providing joint marketing and promotional efforts to assist in brand awareness and will provide ongoing retail and online support.The key here with the Joint Venture Agreement is the involvement of New Era Cap Company. New Era Cap Company was founded in the 1920's and is the exclusive manufacturer and marketer of all MLB and NFL on field caps. New Era also maintains agreements with the NHL and NBA among others. Getting New Era behind the new hats from Ami James would be huge for the company. The President of Yellow Cab Productions had this to say.

"In the 10 years that Frank's Chop Shop has been dropping amazing collaborations with iconic brands like Vans, SSUR, and Futura, this collaboration with Ami James presents an unmatched commercial opportunity. The next step will be working with Ami to portray his vision, direction, and designs into a final product that we can be proud to offer to New Era worldwide. We are hoping to finalize Ami's first designs for the 2016 holiday season."

Ami James is also looking at different ways of consolidating the fragmented tattoo industry. The company's first step is developing a certification and accreditation program. There are over 35,000 tattoo studios across the United States. The federal, state, and municipal standards and regulations of tattoo providers are as fragmented as the industry itself. Ami James Brands believes this creates a large market opportunity for an AJBI accreditation program for elite tattoo studios that certifies their competency and strict adherence to best-practice guidelines. According to AJBI, "the tattoo industry generates $1.65 billion annually in the U.S. and the average cost of a tattoo is $150 an hour."Currently trading with a market cap of $11 million, AJBI is an exciting story on the OTC Markets. However, the company needs to improve its financials. In looking at the latest financials, we found zero revenues, a net loss of $17k, $1k in cash, $6k in total assets, and $333k in total liabilities. No doubt the shorts are going to be all over AJBI and its financial position. The company needs to greatly improve its finances in order to justify its lofty market cap. We will be monitoring the latest developments from AJBI. Sign up for our free newsletter and get our latest analysis on AJBI.Disclosure: We have no position in AJBI and have not been compensated for this article.

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