Shareholder Suggestions

From time to time I receive suggestions from shareholders. Sometimes they are about products and at other times about the stock.

Common themes occasionally emerge. I am responding here to some recent suggestions received because I believe that these ideas are on other people’s minds too. It’s therefore more efficient to address them openly. This ensures that our shareholders as a whole benefit from the discussion.

The suggestions below are shared in the format of shareholder suggestion first, and my response immediately thereafter..

SHAREHOLDER SUGGESTION

“…a few suggestions to show shareholders you care about them to keep the stock moving forward and morale otherwise it will probably drift back to .0001 range….And I dont want that to happen.  WNBD needs to create news…substantial news to create shareholder value in the form of a PR preferred by blog I guess would work.”  

Company Response

.0001 is the default price for a stock that is perceived as being at the end of the road or having problems that are intractable.  I don’t think that the share price needs to return to .0001 unless the company takes steps that violate the trust of shareholders, such as lying about any facts or trying to manipulate market dynamics.  My most important task is to ensure that our operations generate tangible business progress that justifies our new higher valuation.  I am very cautious about “creating news” to use your phrase.  This behaviour is so common in the OTC environment that news releases rarely have the impact that proponents are looking for.  Substantial news is not created – it emerges from real developments.  I agree completely that news would be helpful, but only if it arises authentically.

SHAREHOLDER SUGGESTION

“Share buyback or retirement – The OS and float are large and if there is block or common shares or preferred that can be retired or bought back that would go a long way…EVEN for you to announce a plan to retire or buyback based on a % of revenue anticipated from sales would be very important…Ive see companies do this and the stock goes up significantly cause it shows your creating shareholder value”

Company Response

Yes, it would be welcomed that I announce a stock repurchase plan by the company or shares being retired.  However, it would not be authentic presently because the surplus funds are not yet available to conduct a share buy-back.  To announce this intention without the means to carry it out is more characteristic of OTC companies that try to manage their public market trades through hype.  Shareholders who cannot trust what I say are left with nothing because they cannot count on anything with certainty.  The most important characteristic of the relationship between shareholders and their company management is trust.

SHAREHOLDER SUGGESTION

“Talk about the other products as well and plans for them…NOT just 1000+ stain remover”

Company Response

Yes, I agree that this is appropriate, as circumstances warrant.  At the moment, we are in a ramp-up phase for 1000+.  It has the lion’s share of attention because that is where the action is for the next few weeks/months.  Also, 1000+ is the product in our portfolio which has the greatest contribution to make in cashflow, proportionately.  I do understand that it may seem desirable to emphasize a broad portfolio in order to project broad corporate potential, however, in order for this to be effective it must be real.  The scale and speed with which 1000+ has a contribution to make to WNBD financial strength is greater than the other products at the moment.  I should not emphasize things which may fail to advance our cause in real terms or with the speed and impact required

SHAREHOLDER SUGGESTION

“Start the filings process immediately to go CURRENT”

Company Response.

This is purely a financial question, and ties into my response to your points 1 and 2.  I agree that it is important.  It will happen.

SHAREHOLDER SUGGESTION

“Partnership or Endorsement with a bigger company, entity or even person to endorse product(s).” 

Company Response

The ultimate endorsement that you speak of is the calibre of retailers who are now associated with us.  They would not jeopardize their reputations with products that cause them problems with consumers. If we can reward these retailers with increased sales, then our association with them will be even more visible, such as participating in their own consumer marketing (like flyers) or being brought in-house to be on the store shelf, rather than being only online.  If you have suggestions of additional companies or persons that you have in mind, I will certainly look into the idea further.

SHAREHOLDER SUGGESTION

“Give some sort of guidance on revenue if substantial”

Company Response

I can assure you that when revenue becomes substantial, shareholders will be alerted to this coming down the pipeline.  I need to ensure that such guidance is real.  Puffed-up expectations are a cliché in the OTC environment because most CEOs use them as a way to stimulate excitement without substance.  My goal is to keep improving the operation and to ensure that shareholders can rely on any announcements that I make.

Summary

I do believe in wisdom of the crowd.  I know that WNBD shareholders, as a whole, have insights across a range of issues in stock market dynamics, business issues and life generally. Penny stock investors are more creative, ambitious and courageous than the average bear. Even if I can’t always implement suggestions made by shareholders about some issues, I respect these qualities and will always listen with interest.

Best regards,
Eric Lehner, CEO