Winning Brands Corporation (WNBD)

[hopetocashin]

A 1/6/2014 email correspondence:

In that email I wrote to Eric in part:

I also thought when the idea of some sort of 'compensation' for longs was floated that there was no pre-requisite of additional funding.

Did you already approach the court in the window of opportunity you had, and has it helped stabilize the financing of the company?

His response in its entirety is as follows:

It’s is not about a loan, it is about providing a long term shareholder with free shares to undo the reverse split. The loan is a legal requirement. The company cannot treat individual shareholders preferentially, unless there are circumstances to the individual that meet a special condition. The law permits the company to pay interest in the form of shares for a loan that is repaid. That qualifies as the special condition.



I was merely pointing out to you that I have done what I promised – provided you with an offer of zero cost shares to begin restore your holdings. The gesture represents the promise that I made to long term shareholders to find a way of pulling them out of the reverse split. There is a legal formality that I must observe regarding process in order to respect the regulators and other shareholders.



The court procedure that you referred to by which Winning Brands will receive formal permission to provide creditors with shares is proceeding smoothly. Yes, the company is stabilizing (despite its challenges). As you see, we have survived 2013 with severe frugality and a lower loss that the previous year – a consistent improvement in operating results annually since 2009. For that reason, the (legally required) loan to justify the free shares can now be repaid in 6 weeks rather than over the course of an entire year.

I still cannot figure out when the notion of doing a 'gesture' for the longs became indistinguishable from making a further investment.

I also do not believe that anything I have posted is or should be public knowledge.