Winning Brands Corporation (WNBD)

[scupscup]

BLOGGAGE


Sep
28
Dilution: Shareholder Question
by Eric Lehner
.QUESTION:

“…why did Eric dilute us another MILLION dollars?”
ANSWER:

The question reflects a widespread misunderstanding about the nature of the Form D, such as the one that was recently filed by Winning Brands. The recent filing provides notice that Winning Brands may accept subscriptions of up to $1 Million, in minimum increments of $5,000, however this does not take place in one lump sum at one time. Such a subscription is likely to go to the end of next summer. Thus, the rate of dilution will be greatly reduced if/when the share price is stronger, rather than being financed in its entirety at current prices.

An important reminder: a company can repurchase its shares on the open market when it is in a financial position to do so. Share counts are not a one way street. They can decrease as well.
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