Shareholder Comment: Share Price

SHAREHOLDER COMMENT:

  • This day is all selling it is obvious the 504 is at work, how can you keep allowing this?   I have never seen a company perform so well and have such a crappy pps.  You congratulated people who bought in at .02 and you have destroyed more than 90% of their wealth!!! You have a moral obligation to help the people who helped you start this company.  I do not understand why you are doing this.  How can you do this to us, we need your help you owe us an explanation of this immediately, you should take a pay cut to show you are committed to this company.  At least blog about this 504 ridiculous dilution.

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RESPONSE:

The comment above is a verbatim combination of 3 comments from the same individual, received today in three separate e-mails.  This is from one person.  There are others, who e-mail more often, including  a variety of threats of various kinds relating to the SEC and even mail from Tennessee without return address and an ominous tone.  However, there is also correspondence of support from others. 

It is not physically possible for me to reply to all e-mails, especially when they are multiple entries in a single day.  The gist of the above comments however is a fair reflection of the current sentiment and can stand in for many, for the purpose of a response.

First, a reality check:

  • The volume of trading vastly exceeds share issuance.  This is confirmed by means of quarterly transfer agent reports that are verified by an accredited U.S. securities attorney.  Accordingly, it is technically impossible for all the selling to be coming from the single source being complained about.

 

  • There are certain posters who express a special interest in stock promotion / investor awareness.   Throughout our research of suitable programs that would meet the test of regulators, I have invited such persons to put forth their proposal or recommendations for the company, that from their perspective, would be in the best interests of the company.   These invitations have been met either with silence, or an inability of such persons to propose specific parties who would meet the regulatory requirements as to background and method and the business requirements as to cost.  While it is the responsibility of management to make suitable arrangements for its business, of course, it is interesting to note that no alternatives have been put forth that are viable.   Hence, the company continues its research.

 

  • A complicating factor in this research is the fact that the entire environment of micro-cap funding/clearing/trading/regulation is undergoing fundamental change.  What seemed like obvious and standard protocols, are simply not applicable at present.  There is a wide range of opinion as to what is permitted, effective, affordable and acceptable to both the shareholders AND to regulators.

 

  • A further complicating factor is that Winning Brands has already stated that we are seeking a suitable path to SEC registration – and that our work in this regard has accelerated for obvious reasons.  Accordingly, I invite the reader to consider the inherent contradiction of a firm which is in the midst of an application that will call for an end to unregistered financing to be embarking on a stock promotion / investor awareness initiative at that very moment.  It is exactly like driving with one foot on the brake, and the other on the gas.  It is vital for SEC professionals who review such applications to understand the applicant and to have confidence that all intentions are disclosed.  The bull horn of stock promotion by an unregistered entity is inherently inappropriate in the midst of an application to become a registered entity.  This is because the stock promotion that is permitted for registered companies is of a different type than what takes place amongst unregistered companies.  There needs to be a quiet period for the transition.

 

  • There is a need for clarity about the nature of this investment marketplace, and the legitimacy of threats/complaints when the price of a speculative security falls.  Winning Brands is exceptionally clear, consistent and open about what it is trying to accomplish.  It’s a terrific mission – but it’s a risky mission.  The nature and result of our work is reported quarterly in the Adequate Current Information tier of OTC Markets.  The challenges are also spelled out on our website investor page so bluntly that I have taken considerable criticism for its candor.   Yet, at a time like this, I am greatly relieved by that condor.  Winning Brands may not be suitable for most investors, if those investors are not able to sustain losses during the period that the company works toward its goals.  Shares in companies that are at our stage of development are not secure investments.  They are investments made with the intention of large capital gain in the full knowledge that most such companies’ shares decline.  Each individual investor relies, ultimately, on their instinct about the plausibility of success.  Betting on horses and choosing a winner within in this portion of the investment market are similar exercises.  Everyone knows this.  I am simply honest enough to say this, consistently and from the beginning.  There is a double standard by some in recognizing this.

 

Now, for a reminder of what the company is doing presently:

  1. The 4,000 introductory packages are starting to be distributed by Do it Best to their entire membership next Friday, and will continue for 2-3 weeks
  2. The same organization is receiving special  Pre-Market order forms at all store locations before the October formal launch
  3. At that formal launch, we have been given one of very few coveted special live demonstration times for the general audience
  4. Our Club launch preparations are progressing according to plan
  5. Our product turnover is improving in several retailers in Canada due to a combination of factors, including new mutual initiatives
  6. Our test at Lowe’s USA is entirely positive and continues
  7. Our new online listing at Home Depot USA is entirely positive and continues
  8. A New York retailer that has taken delivery of, and paid for, product continues to assure us that we are heading to their shelves
  9. Our Lancaster partnership is re-energized with their restructuring and their account base is receiving new materials/initiatives about 1000+
  10. For reasons already discussed in the CEO Weblog our European activity can finally get underway in earnest next year
  11. Testimonials continue to arrive from all kinds of people and walks of life
  12. Our likelihood of being awarded the GSA listing has become extremely good, although it is important not to consider such a thing “done” until it is formally confirmed

There are many things we are working on behind the scenes that cannot be spelled out in detail for obvious reasons.  The key point is that this company is a going concern.  It has many positive business relationships.  Its terrific product(s) are gaining ground and our stature will rise further with registration at such time that our application can be reviewed and approved by the professionals at the SEC. 

It is clear from the volume over the past few days, that some people seem to agree with me, because they are acquiring our shares with the intention of selling them at a profit at some point in the future.   Many, many shares are being accumulated now by people who view the company’s potential positively.  In the meantime, I continue to work hard, with my colleagues,  to reach our operational goals.

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