QUESTION
Due to our low pps, there is chatter once again (shocker right) that a reverse split is now immenent (as opposed to a buy back). I know you’ve heard this a million times and probably blogged it just as often, but it probably wouldn’t hurt for you to restate your intentions in order to squelch all of the negativity/bashers on the board. I feel it is this negativity is having a major impact on our current pps , currently at 0.0004. For the record, I have been invested in winning brands and a huge supported since 1/08 Thank you for your time.
ANSWER
A reverse split is predicted by critics because that “solution” is standard operating practice amongst firms that face similar circumstances to ours. Winning Brands has demonstrated a desire to be “a cut above” its peers in its relationship to shareholders, its willingness to work hard to achieve a simple and sound business plan and document verifiable operating progress. It has taken too long to reach the breakthroughs that are now starting to materialize on the U.S. side of the business – we all know that. The more insightful observation is that Winning Brands had the perseverance to see it through and is, in my opinion, on the verge of meaningful change. Accredited investors are as smart as anyone else – they see the difference between past struggles and emerging success.
It makes a difference in such discussions that I can point to our track record of honesty, accountability and dedication to the mission. Accredited investors hear it from me so often that it’s like a “broken record” in any given situation when I ask: “What are the options that we can be proud of when it comes to the interests of common shareholders?” As I mentioned before, this serves as an effective filter because that sounds like hard work – and is. So, I end up only having on-going discussions with a smaller, but better, group of interested parties.
There are more possibilities when it comes to financing prospects than just the “standard operating procedure”. Have critics been examining what special offers a company can make to its existing shareholders? Have they been considering what the effect on financing could be with even one major military contract? Have they considered that accredited investors are people too, with individual priorities, and that some accredited investors might have motives or principles which are more elevated? The wealthy are not all sharks. The most “evolved” within this community include some very fine people who are more interested, at this stage in their lives, in making a positive difference for others who are deserving of a helping hand.
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When the day comes that the dilutive financing can be significantly diminished, as it will, our stock will respond very favourably because it takes very little natural buying to move it up. And if the PPS does not move up, then buying shares back is all the easier. It’s a win for the remaining shareholders, either way.
I don’t “blame” the critics for their own broken records of R/S, R/S, R/S because that’s what they see out there in cases like ours. It’s easy in life to predict “typical” behaviour. It would be more interesting to hear some predictions about what unexpected positive alternatives might emerge from the dedicated minds at Winning Brands and its supporters. In due course, Winning Brands will demonstrate, again, that it is easily underestimated.
The journey to competitive success MUST be filled with challenges; that’s the process of natural selection. What Winning Brands is going through right now is nothing more than the process of “survival of the fittest”, in action. What we are going through is exactly what struggle and overcoming obstacles looks like on the way to success. Every time I hear a critic offer the usual doom and gloom predictions, they are merely proving that they have not personally built a new consumer product brand success story. From their perspective, it isn’t going to happen.
You can ask Scup and Dirty, “what did Eric do at the Do it Best Fall Market?”. They will tell you that I did not sit around waiting for people to walk into our booth. I went out there, into the aisle, and literally stopped anyone I could to divert them into our booth so that Scup, David and Daniela could take over with their demonstrations and technical discussion. I remember one man (who did come into the booth) said about me to his wife “Wow, he’s agressive” and his wife responding without skipping a beat “Yeah, and I love it. He’s passionate about the product”. If you are not willing to go “out there in the aisle” in life, then of course most opportunities are going to walk by. It’s as simple as that.
There are plenty of successful people and companies that HAVE overcame obstacles that were considered insurmountable. I find that group more informative than the doomsayers.