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Healthy Coffee International, Inc. (Pink Sheets:HCFI) announced that the company has completed a 1 for 10,000 reverse split of its common shares. As a result of the reverse split, the company is issuing 1 common share for each 10,000 shares held on the effective date of June 20, 2008. Upon completion of this reverse split the company now has a total of 362,340 outstanding common shares and total float of 218,807 shares. The terms of the split will require all shareholders to turn in a physical certificate in order to receive their new shares. As a result of this restructuring the company has also been assigned the new trading symbol HCFI.PK (the previous symbol was HCFE.PK).

In response to this announcement the Company’s CEO Rick Aguiluz commented, “We believe that this reverse split will provide immediate important benefits to our shareholders. The movement to a significantly smaller number of traded shares will allow us to better service our shareholders and at the same time signal to the marketplace that we are positioning ourselves as a company worthy of serious consideration as we prepare to move out of our developmental stage and into our marketing and expansion mode. The timing of this restructuring is reflective of the steady progress of our fund-raising efforts, and coincides with finalization and receipt of our first four product formulas, new marketing launches in Japan, Philippines, Colombia, Chile, Sweden, New Zealand, Australia and Romania, and the official pre-launch of our international marketing campaign in June, 2008. We are very excited about the future of our company, and look forward to making additional important announcements in the coming weeks and months.”

Having been around reverse-splits in the past, I am not 100% sure this is a good sign for the company. To give you an example of a stock split:

Take, for example, a company with 100 shares of stock priced at $50 per share. The market capitalization is 100 × $50, or $5000. The company splits its stock 2-for-1. There are now 200 shares of stock and each shareholder holds twice as many shares. The price of each share is adjusted to $25. The market capitalization is 200 × $25 = $5000, the same as before the split.

While there is no further dilution in the stock, anytime micro-cap stocks split, it is usually a sign that they have raised a bunch of money (which just means the dilution already occurred) or that they are trying to make themselves more attractive to a larger pool of investors in an effort to get the stock price higher. It also potentially means the stock valuation prior to the split was not attractive to a large enough group of investors.

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 Healthy Coffee International is adding HEALTHY COFFEE USA, INC. to their family. Healthy Coffee International will use the USA branch to distribute its healthy coffee and wellness products in North America.

The secret behind the coffee is that it combines Reishi and Ginseng for a powerful healthy, energizing coffee that has never before been offered. Research has shown that Ginseng has the ability to decrease stress levels and increase stamina and energy while Reishi is a century old herb filled with powerful anti-oxidants that helps strengthen the immune system and eliminates toxins. The coffee combines three of the most popular beverage groups today, energy drinks, healthy drinks and of course coffee.

Coffee is the biggest commodity in the world just behind oil. Its popularity has skyrocketed over the past decade, and most of us can find a coffee shop on every other street corner. Over 50% of Adults in the United States drink at least one cup of coffee every day. Figures show that in the past year, 40 million people visited Starbucks every week, or 140 Million every month. Energy drinks are the fastest growing sector of the 93 billion dollar beverage industry, and the wellness industry is an over 100 billion dollar industry. Healthy Coffee will be huge if they can capitalize on these markets.

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