Letter from Eric about reporting:
Hello Mr. XXXXXXX,
Thank you for your kind thoughts – and for the opportunity of answering your question. The transition from Non-Reporting Issuer to Reporting Issuer has an intermediate step of Non-Reporting Issuer with Voluntary Disclosure. It is possible that this will be our progression. I have been careful not to provide specific dates for these possible transitions because it is in the company’s culture to do what it says it will do. Until there is certainty about that issue, we consider it more honest to leave this in the category of under review.
The relative merits of being a reporting issuer can be discussed at great length because the costs and constraints which follow from reporting status are not necessarily matched by improved access to capital.
My assessment is that Winning Brands must solidify the business foundation on which it is standing with more concrete and statistically projectable revenue sources that would satisfy the more conservative investment dealerships so that if such a transition from one state to another takes place the continuing access to capital is already planned and determined in advance according to the new status.
If in the interim we file voluntary disclosure documents then we also need to ensure that it is something that will be done without inadvertently forfeiting our Non-Reporting status.
Please do rest assured the subject is under active discussion in the company.
Thank you for your interest in Winning Brands Corporation and for being part of the shareholding family.
Eric Lehner, CEO
Winning Brands Corporation
Sent: February 22, 2008 9:16 PM
Subject: Investor Question
Dear Mr. Lehner,
I am an investor in your fine company from Belmont, MA. First and most importantly, congratulations on all of the recent developments as shown through your impressive PRs. I have already seen my portfolio grow significantly since starting a position in December, but to say it was unexpected wouldn't be accurate; I have a lot of faith in Winning Brands and the direction it is headed.
That being said, I do have one major concern. I have read your investor FAQ several times, and I do not quite understand one particular statement, in regards to reporting:
"It is very much in the interests of shareholders that the company benefits from the privileges of Non-Reporting Issuer status while this status is still available to it, rather than depriving the company of the competitive flexibility which this status provides."
I am sure you understand where I am coming from, but it just seems that Winning Brands must be quickly approaching a situation where the benefits of reporting outweigh the disadvantages of your shareholders not knowing the cash flow and financials of the company, especially when the company is having so much success in marketing and sales. It seems that this is where the majority of the criticism lies among those who are still sitting on the sideline. Perhaps it is just a matter of preference, but it seems as though some would rather see red (and presumably the progression to green) than no numbers at all.
Admittedly, I am young and naive, so please be patient with my inquisition and take it as a compliment that your investors are eager to know this information. I know that you cannot give me any definitive answer and trust that you're doing things in the investors' best interest, but any further insight into the process would be greatly appreciated.
Congratulations again and thank you for your time and for the opportunity to share in the successes of your fine company.