Sadly, I won't be attending. Nevertheless, I have some questions for annual meeting:
1) CC Bars have been flooded with consistently negative reviews on both BB.com and Amazon – a trend which continues through today. According to the Company’s most recent 10-Q, the dispute with BB was settled in late October of this year, resulting in the resumption of BB production of CC bars. Have these BB produced bars entered the marketplace yet? Do you intend to do anything to raise consumer awareness of the resumption of production of the “original recipe”?
2) Given the Company’s tenuous cash position, how does the relocation to California, given the roughly 30% increase in cost-of-living and the current lease (and prior renovation expense) of the Denver facility serve the company and/or increase shareholder value?
3) The company has borrowed approximately $18MM (plus accrued interest) from its CEO, debt which was recently renegotiated to a consolidated 12% annual interest rate resulting in interest expense of over $2MM/year, and with a conversion rate of approximately $1.11 per share. Recently (and prior to the execution of consolidated debt instrument described above), a major shareholder publicly put forward a plan to purchase enough common stock from the Company to extinguish this debt (provided the proceeds were used for that purpose) at a rate of $1.89 per share. This arrangement would have removed the bulk of the Company’s debt from the books, been less dilutative to the rest of the shareholders, and saved the company some $2MM of cash expense per year. Despite these benefits, the Company's BOD chose to pursue the renegotiation with the CEO. How did this decision benefit the company and/or increase shareholder value?
