Winning Brands Corporation (WNBD)

[satter]

Eric implied that legally it was not part of the bankruptcy, it was not, and therefore it was operational the whole time, never stopped making deliveries.

If he or you, now what to say it was not petitioned into Bankruptcy like GT Systems Inc was, but was financially distressed, don't let me stop from saying that.

Also the bankrupty was discharged in Nov, 2020, so if the operations are still being affected, two years later, why do you think that is like that?

Was it also then on the verge of bankruptcy? Please share what you know.

Also below in your opinion is he talking about Gesturetek Systems Inc, or GestureTek Health Inc ?

Background to Current Process

Winning Brands is acquiring valuable intellectual property, as well as physical assets, personnel and goodwill of a technology company in North America that was put into trusteeship when a bank withdrew a line of credit in a manner that created a domino effect. A crisis ensued. On behalf of Winning Brands in the capacity of consultant, I intervened to organize bridge financing for that entity while the negotiations began with the trustee for Winning Brands to acquire the items in trusteeship within a new WNBD subsidiary, free and clear of the institutional liens that caused the difficulty. I know for a fact that the trusteeship was unnecessary, and not a reflection of the quality of the company. The trusteeship, in essence, arose as a technical consequence of the fact that the company did not meet the bank’s acid test ratio during a periodic review. Ironically, the “excessive” debt to asset ratio arose from friendly, foundational, shareholder loans that would never jeopardize the company. But to the bank, it was all about the ratio. (https://en.wikipedia.org/wiki/Quick_ratio)

Such decisions are often made in the “ivory towers” of bank headquarters without much flexibility. If a company does not fit new profile criteria, the company becomes a square peg for a round hole. Banks don’t like that. No one in bank management gets kudos for being flexible. They get criticism for not following the rules. In this case, the bank’s action precipitated a sequence of events that was too complex to stop simply.

My intervention gave the company a lifeline that, to my reckoning, could be beneficial for all parties concerned, if the rescued operation could join us as part of our public company team.