QUESTION
- With the share price about to drop to the dreaded triple zeros soon. (Perhaps today), all of the naysayers/bashers are out. They are saying that the dilution has picked up big time over the past several weeks and that the TA has been gagged. What is your opinion of these statements?
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ANSWER
Over the years, we have had people calling the Transfer Agent claiming to be lawyers, asking for materials – when in fact such identities were determined to be bogus. Others have made what are in effect, daily “nuisance” calls, because they have no legitimate interest. Unrestricted access of the Transfer Agent to persons unknown at this time is not practical, and expensive. Each T/A service event generates a charge – that’s how they stay in business. Therefore, every 90 days, U.S. securities lawyers review our O/S postings by comparing them with figures supplied to them by the Transfer Agent. The results are then filed with OTC Markets (Pink Sheets) as part of our Financial Reports. There has never been a discrepancy in our self-reported O/S over several years of operation, as confirmed by legal verification.
Our instruction to the Transfer Agent is very simple: You may provide our accredited legal counsel with whatever information they require for verification purposes, however all enquiries from the general public should be directed to the company’s business office for response. All enquiries will be responded to.
As to the rate of dilution, it fluctuates. Price per share is not the only factor in the equation. Debt reduction is another. Dilution at the historical rate and current rate is not sustainable, clearly, because the firm must replace capital funding with sales revenue and increase internally generated working capital. Winning Brands has more practical reasons to be able to do this in the coming year than it has had at any time in the past.