Shareholder Question: Production

QUESTION

Will the company be able to handle an opening order from an NA?  Or will you dilute to do that?

ANSWER
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No dilution or investment market financing is required to produce an opening order for an NA of the type that you are referring to.  We have excellent relationships with our production partners and supply chain.  This issue has already been anticipated and addressed.  Paradoxically, the larger the order, the easier it will be.  If, for the sake of an example, approximately 1,500 stores need 2 cases of 30.7 fl. oz.  (36,000 units) and 2 display boxes of 4 fl. oz. bottles (36,000 units) to get started, then our supply chain is already geared up to produce and deliver.  It’s not a problem.  The value of such volume is approximately $250,000, to use a round number.  Winning Brands has adequate arrangements of various kinds to handle such an opening order in the normal course of business.  The next face-to-face customer meeting to discuss possibilities/next steps along these lines is planned for this month.

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