KonaRed Corp. (KRED)

[RkyMtnHiInvstr]

Would I have preferred a PR disclosing their intentions/rationale for filing the Form 15...YES! But is this announcement only a bad thing; I don't think so. Here's a few positive reasons many companies file. Hundreds on the NASDAQ and NYSE did the same thing in 08'-09' to save money. While there are certainly disadvantages, let's look at the positive aspects as well.

1. Significantly lower operating costs and management time commitment for compliance and reporting activities. Sarbanes-Oxley Act compliance is also no longer needed.

Securities laws and the Pink Sheets may require some level of ongoing disclosure to stockholders. Annual stockholder meetings are still required.

2. D&O insurance costs may be decreased.

4. The stock will continue to trade on the Pink Sheets

5. Less public scrutiny and disclosure, making it easier to keep confidential such matters as competitive business information and executive compensation.

5. The company will remain subject to anti-fraud provisions of state and federal securities laws

6. The company will have greater freedom to explore possible extraordinary corporate transactions.

7. Corporate governance requirements can be simplified. For example, it would not be necessary to have a majority of independent directors and the board of directors may be decreased in size.