see Eric blog dated Feb 15, 2012
Shareholder Question: Financing
Shareholder Correspondence
by Eric Lehner
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QUESTION
There have been several questions asking for an update on the status of the new financing. It is more time-efficient for me to reply to them as a generalized “What’s the latest?” question.
ANSWER
We have been in discussion with various financing candidates over the past few months about what terms and conditions would be attached to a private placement of a size necessary to permit the cessation of 504 funding. Winning Brands has been just as selective as the candidates. Winning Brands has declined financing proposals in the past that had provisions which were unattractive to the common shareholders and we continue to be interested in the common shareholder perspective to any financing structure. There is no reason to accept an unattractive arrangement. Winning Brands has much to be proud of and is well positioned to benefit from its several years of focused efforts. Winning Brands is certainly far above average in its level of disclosure, validity of its business premise and plausibility of success than many of our “peers” in the entry level public markets.
Through the process of such discussions, it has become clear that finding the right financing partners, with long term thinking, sophisticated and benevolent both, is likely to succeed. It has had more to do with being introduced to the right parties. We have been meeting a higher calibre of candidates recently than ever before. I am confident that our objective will be met.
Naturally, I understand that time is of the essence. On the other hand, a poorly conceived deal or working with the wrong parties will merely create problems. Therefore, the most important consideration of all is the quality of the finished result. Our common shareholders can be confident that good people are working on the situation in a principled manner. The people involved, and I in particular, will only proceed with arrangments that are beneficial for the company’s future; a future that we are excited about.
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Tags: Winning Brands is being introduced to an increasingly appropriate group of financiers whose interests coincide with Winning Brands plans.
