Most all pennies have a gagged T/A for these reasons....
1) The most popular: They want to dump mass amounts of shares
into BS "stories"... Many of these stocks will do this, hence the skeptical nature of the penny investor.
2) Some companies do not want to pay a huge fee (per month) for the handling of the call volume. Many T/As do not have the man power to take on 1000's of calls from penny investors per day, so they charge a lot of $$$... Some penny investors will call the T/A EVERY SINGLE DAY to see if the O/S has changed... Especially with pink stocks, cause we dont have any filings to glance at.
In the case of WNBD, you have to either assume one or the other . The CEO claims its due to expenses (he'd rather invest in advertising, etc) and plans to PROVE the most recent O/S to us next week.
IMO, the main thing to look at is the market cap vs sales growth. Are they using these shares to GROW THE COMPANY, or to pay for fancy PR's that never amount to anything?... You can walk into the Canadian Home Depot's, Canadian Tire, True Value, Ace Hardware, Benjamin Moore, etc and buy their products... It took $$$ to get to this point and IMO, they've done a good job with what they had to work with....
That is my "opinion" based on bits and pieces of the DD puzzle
PS: They would have never needed to issue this much stock if the PPS reflecting the growth. The market cap was ridiculously cheap a few weeks ago and IMO, it is STILL cheap compared to what these new racks could do in Home Depot ALONE... The fact is, this company had very little "market exposure" until December, which is shifting rapidly.
Hopefully, if they need to issue additional shares, they will be able to do so at higher levels, thus increasing advertising and compounding sales through their growing CONSUMABLE retail presence.