Shareholder Question: O/S
by Eric Lehner
Hi Eric, Why has the quarterly share structure update suddenly turned into the weekly share structure update? Has bridge financing been found, while you continue to be working on a deal for friendly financing? Is this supposed to be some clue for the longs here? Not much news has been released lately and the price per share is beginning to show some signs of life. Please share what you can. Thanks.
The update on June 15th was made in connection with the renewal of our Current Information tier status by Pink Sheets. (Current Information is a disclosure standard that the majority of our peers on Pink Sheets do not meet).The update on June 25th was made to provide evidence that there was no issuance immediately thereafter. The update on July 2nd was to provide the end of Q2 share status for official purposes.
We are utilizing new Purchase Order Financing to supplement existing Accounts Receivable Financing. This helps with cash flow, although does not address the desire to hold larger inventory for faster turnaround of orders into deliveries. That will come with the broader refinancing.
We are still in discussion with prospective participants in a broader refinancing whose goal is to elevate the company’s prospects, by building on its current accomplishments with additional resources to make the most of opportunities that exist with existing accounts, and new sectors, for our product(s). The calibre of these discussion partners is much higher than any parties who were available in the past. With account relationships of the type that we have now acquired, and product reviews being as positive as they are from consumers of these retailers, and R&D/manufacturing/operational competence having been established, Winning Brands is now a suitable candidate for an appropriate investment bank. There are a number that specialize in entrepreneurial enterprises which have cultural and practical qualities that could, under the right circumstances,lead to growth of 10 to 100 times current size of revenue. Many aspiring little companies do not have these qualities. Even in our case, until the return of Walmart took place, and the evidence mounted of U.S. and international interest in the product, we were not yet qualified for an investment banking relationship. We now have many good things going for us. I will not rush the refinancing discussions for the sake of a timeline, because I am only interested in sensible arrangements that are beneficial for current shareholders. It is a pleasure to be discussing options with investment industry experts who have the scope and goodwill to see long term possibilities. Their participation in these discussions is much appreciated and a credit to them and their organizations. It takes no talent at all to merely invest in something that has already acquired all the obvious trappings of success. It takes real skill to find the “up and commers”. That’s also a more useful exercise in society – interest and participation in emerging enterprises. Our society needs as many of these as possible. It has been painfully obvious that many of the “blue chip” organizations over the past couple of decades have had their own problems.
There will always be a few critics who claim that we cannot do what we have set out to accomplish. These are people who have not personally accomplished exactly what we are setting out to do. However, for those who have, there is a standing invitation to play a constructive part. I am easy to reach.