Winning Brands Corporation (WNBD)

[lbdave]

I think your assesment below is somewhat accurate, and is a situation you and others may see as a problem, but it may be great change in operational proceedures that will be a huge benefit in the long run.

Penny co's sell discount stock in exchange for funding...there's many various forms/instruments but the collateral is ALWAYS discounted stock.

Yes WNBD has AR and PO financing...what more financing do they require to supply product to their existing customers? So probably should've used different verbage to say customers are paying for it but clearly their profit margins shrunk last Q now that they're relying on their new PO financing along with the AR financing to keep their existing customers supplied. It's sorta like pay as you go funding because the discount share financing has run out so can't pay for spare inventory anymore hence the decline in profit margin due to the heavy costs of relying on this type of financing to keep supply chain rolling k!

If WNBD is continueing to operate on AR/PO financing without further dilution of common stock being required, I see that as a good thing. As you stated, co's sell discounted stock in return for funding, and I agree.... As you also stated, finding funders who will assist in funding for WNBD with no liquidity won't happen either, and I agree with that as well. So, with your assesment on funding of the company, and Eric's statements in regards to problems finding 504 funders in previous blogs, it brings my point into question. Has WNBD trimmed down their operational budget to a point where they can operate on current revenues? No cash outlay for product, AR/PO used for that, and profit from sales being used for scaled down company operations. Only advertising currently being used seems to be in store awareness to employees addressing the many uses for 1000+. If this is the case, then the repetitive post from individuals regarding "out of cash" and "time running out" would appear to be moot. Now it would certainly slow down the growth process, but if/when sales slowly increase these funds could be used to further awareness.

This is just a point being made by using your own statements in regards to discount funders and AR/PO which you as well as others have described in the past.