In response to a few posts -
Relative to the $5,000 Units being offered by the SMKY Asset Fund, they remain available and are now selling much faster as the price of SMKY continues to rise. I see the offer hopefully closing in the next couple weeks, in which case we will have enough financing from this channel to launch WW once a sufficient inventory is built, putting the opening date around September 1. (I had originally looked for WW to launch early August, but the lower price of SMKY stock in June/July made market-buying more attractive than the Units so capital was much slower coming in.)
Our new branding design and web site look awesome and the site will go live during the week of August 15th for on-line ordering of salmon as our introductory product, supported by (low-cost) social network campaigning until we launch WW. I have no idea what will happen when we launch with WW, but we must be ready for the potential of a huge response wave of orders as literally millions of consumers will be viewing our promotional ads on WW and affiliate sites the very day they first appear. The inventory requirement is substantial and we must have enough cash banked to support the first six months of the campaign, which is why financing must be in place to launch. If ANYTHING can and will kill an emerging company with our potential, it’s allowing excitement and impatience to overrule prudence and launch a national campaign under-financed…
To the questions posted about our financing and in particular the impact on SMKY’s capital and trading structure from the forthcoming Preferred Stock offering, there are aspects of our financial marketing strategy that everyone must understand, especially as SMKY continues to climb. I am sure that many, if not most of you in your pursuit of penny stock trading profits, have endured at some time the bitter loss created when a promising company takes in its primary financing and the resulting dilution comes back against the company to level any growth or even kill its stock. Hedge funds and large private equity firms have made billions as they give financing, only to take “their” profit from the stock’s rise and leave early shareholders in the wake of loss. That’s not how SMKY has been structured and that will not happen under my watch as CEO; I didn’t invest my life’s earnings and time thus far only to have it sold out from underneath me by some investor entity not willing to allow SMKY its chance to mature for a few years.
At a time or stage such as this, launch capital for a pre-revenue company is typically at its highest cost and results in substantial dilution for early-stage investors, especially public float shareholders who had bought the stock up in the market, thereby setting a high market cap value upon which the CEO could obtain financing. But, savvy investors don’t buy into inflated market cap values from stock buying shareholders, they offer the desperate CEO financing that can be based upon mere fractions of current trading values and get both restricted and free-trade shares, both of which they are contractually allowed to sell into the market at their will. And, they do.
Our oven lease Fund is financing our interim launch period with crucial cash, for which NO SHARES will be issued for a period of THREE YEARS, affording SMKY its opportunity to grow, to mature as a profitable public company and reach trading ranges respective of its billion dollar brand potential. Yes, SMKY is paying an incredible 20x return to investors buying Units, but SMKY gets the cash NOW and it is my belief that in three years upon conversion of the 20x into SMKY shares, the investor will be receiving shares at a cost value well into triple digits. It’s just like selling stock right now for say $3, $5 or more … we’re saving millions of shares of dilution, and no shares being issued now to come back at us in the near future.
The Preferred Stock offering is structured in the very same manner, but pays considerably less conversion return because it’s “post-revenue” financing; SMKY is generating revenue and not just revenue, sales from national franchise brands like WW and other large affiliates. It’s expansion financing, but still offering to investors a very attractive 3x to 5x conversion return IN THREE YEARS. The rate of return SMKY offers is a function of when the trigger is pulled to begin selling the Preferred offering, which position is determined effectively by how quickly now the Fund’s Unit offering can be sold out. We continue to sell the Units at this faster pace, we control our financing destiny and that means NO shares from financing come into the market for three years.
Let’s do it! My sincerest appreciation for the wonderful support you are all providing. It’s just gonna get more fun…
