Shareholder Questions: Merger and Investor Awareness

QUESTION

Hope all is well.  I was curious about something I have noticed somewhat organic growth this year but it has not translated to a pps increase.  I was wondering if there has ever been a thought about perhaps a merger with another company to perhaps give us the cash necessary to put forth marketing efforts to make it into the big box retailers.  Just a thought I was wondering if you had considered.  I was also curious as to why now you feel an “investor awareness” campaign is appropriate now when it was not in the near past because you wanted to uplist the company.  Please do not rush to answer my questions I know how busy you are.  Have a happy new year.

ANSWER

A merger is a combination of business units as equals.   It is difficult at the moment for Winning Brands to be a negotiating equal prior to having evidence of substantial growth.   Furthermore, for Winning Brands common shareholders to benefit from a merger, the company would require a higher than current market capitalization.  This is because a sale of a substantial part of the business to another party at the current share price level would represent a sacrifice of the current shareholders and only benefit the merging-in and future shareholders.  The WNBD share price has often shown itself capable of moving  up easily (even on low volume) if demand exceeds supply on a particular day.  The company’s need for financing before the company attained self-sufficiency caused the greater supply than demand for its shares over the past few years.  Through a broader range of funding techniques in future, this supply imbalance can be reduced.  This will benefit the existing common shareholders, not merely future shareholders. 

Kamagra will act on get cialis cheap the user in 30 minutes of consumption. Males, particularly with increasing viagra soft tablet age experience repeated and longer lasting erection troubles that is called as erectile dysfunction. More often, people who lose the use of some body parts can recover their super active cialis normal functions with the help of physical therapy. As the PDE- 5 is inhibited the blood flow cheap viagra levitra djpaulkom.tv to the male organ of reproduction. As to multi-faceted Investor Awareness, the egregious aspect of stock promotion is not the creation of awareness, per se, but rather to promote at a time or in a manner that is not justified by the circumstances of the company.  If done in that inappropriate manner, which is unfortunately the usual manner, then the  higher price achieved through the (expensive) promotion inevitably spikes quickly, benefiting the relatively few people involved in the scheme.   Such campaigns are typified with hype and are obvious for what they are.

In Q4, Winning Brands achieved operational milestones in quick succession. These include activation in New York’s leading drug store chain, activation in a 4,000 member hardware buying cooperative, activation by the U.S. government by means of a Schedule Contract, and activation by Walmart USA’s Sam’s Club division for their Road Show program.  These four verified accomplishments followed logically from earlier work and provide a new, higher, platform for the company’s valuation.  Accordingly, in my opinion, these are compelling technical reasons why the “inherent” value of Winning Brands is significantly higher than reflected in the current price per share.   It’s only natural that this deserves to be communicated.  Knowledge of this fact does not create a spike – it establishes a new higher baseline if widely enough known and understood by interested parties.   The SEC and regulators abhor paid promotional programs that are linked to financing issuance for the enrichment of the few participants.  They do not object to a company making its accomplishments known. 

Thank you for taking the time to ask two very pertinent questions, no doubt of general interest to the shareholders.

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