Check this out from Stockhouse
I spoke to Patterson now less than 5 days ago, and no mention whatsoever was made of the private placement for over 4 million shares, to retire outstanding debt.
It stinks pure and simple.If he wasn't aware of the event to take place, then he should not be running the company in my opinion.
However, I phoned Pual Gorman at around 3pm Winnipeg time, and he was the most forthwith and upfront person related to the company that I have dealt with yet.
They should clean out Zuefelt's office, for all the good he does, and put this fella Gorman in charge of Corporate Information and Investor Relations. They might as well, he does the job of both anyway.
Given the compromising position management put him in, knowing it would be very hard to defend the indefensible, he did an admirable job, and did not try to put a positive spin to the recent turn of events involving the outstanding share issue.
I respect him for that.
To summarize Peter and Slick:
Paul said, in essence, that what management did was wrong, should not have been handled the way it was handled, and on his insistence, if they ever wanted to attain the respect and credibility of the street and list on an exchange in the forseeable future, they should post a news release on all the major channells of information distribution asap.
From what I can comprehend, and as we are all to aware, the share price today, was negatively affected by the 20%dilution of share issuance, displayed in the market. No matter what can be extrapolated from the release of those shares, nothing positive came of it, and @ one point today, I thought about liquidating my position entirely. I will raise shit at the next shareholders meeting, count on it.
Paul, shooting straight from the hip, answered all the questions put forward to him. Here is a summary of the sequence of exchanges:
1. "Do we have anymore surprises in the way of
share placements coming down the pipe".
"No".
2. "Was Patterson aware of the event"?
"Yes"
3. "What's your take on it"?
"I don't like the way it was handled".
4. "Is Bradshaw still involved with the company"?
"Not in the day to day operations, but
behind the scenes, he is a good closer on securing a deal. Patterson is best at opening the door to get the deals initiated. Barry Wolk was Bradshaws idea".
5. "How is the securement of capital coming"
"Good, there are a few suitors including Merrill Lynch, who we are still looking
at. WSMI is looking for capital in the form of debentures not for equity position in the company. Patterson is leaving for Chicago
tommorrow to talk to some other interested
parties".
6. "Does the agreement with Wolk preclude any
negotiations with other suitors, interested
in injecting capital into WSMI."
"Not at all"
7. "Your summer projections for share price and
revenue were greater than the projections
for the entire 1st year. Are you aware of
this"
"Yes, and those numbers on the projection
. sheets were based on a working model of
Bid.Com's. Our numbers will be
substantially higher. I was almost
embaraseed sending those out. Will mail
you out the revised numbers asap"
(Me)..."do those numbers of 2.50\share by
summers end still stand, and do they
already take into account B. Wolk's 50%
take off the top?"
"Yes, and Yes they do?"
8. "So what your telling me is that the 300%plus, year over year earnings figures
for the next 5yr.s cycle were conservative?'
"Yes they were"
9. "Thats incredible growth, and quite frankly hard to believe.Your also projecting a loss of .01 per share for year one?"
"Yes, but the numbers would now be smaller because of the greater shares outstanding
as of today. The capital costs are able to controlled so astutely, because of the advertising and marketing agreement with Wolk, by which WSMI accummalates no debt for,
due to the terms of that agrement"
(Me) "How long is the agreement in affect for".
(Paul) "I'm not sure off of the top of my
head, but I will find out".
10. " Do they still have what it takes to get this of the ground?"
"Yes, I believe with all the right people
doing all the right things, it will work quite well."
11. "How critical is the cash flow".
"Very...thats why nobody is being paid in
cash, but in lieu of shares at this point.
The marketing and advertising is top notch and in place, and Wolk will do his thing,
and get our company out there for all to
see. With him on side, things should happen
as far as exposure and peoples awareness to
building the brand , surprisingly quick. The software is top notch, and state of the
art interactively. We will in all likliehood be hard to match for interactivability on all our sites."
12. "What is the offical opening day for business on the 3 web-sites?"
" March 15"
13. "As you know Paul, I am quite concerned about the lack of cash available. Did they pay you in shares too, and what is debt position of the company?"
"Yes I received shares as compensation
for my services, and no, the company as of today has no debt, whatsoever."
14. "No debt"?
"None"
15. "And no more surprises in the closet that
will kill any remaining credibility and limited trust shareholders like myself
may have left."
"Today...the way it was handled, shouldn't have happenned. It stunk.I will see that nothing like this occurs again in the future, without the advance notice to the shareholders. I was just as pissed as you guys were, only difference is, it's my job to clean up the mess. My shares were diluted to, which didn't sit
well with me either".
16. " I will hold you to that Paul. And in my opinion, they should fire Brian Zuefelt, give you his office, for all the godamn good he does. If he is there only for names sake since conception, fire him. He is not at all professional in practice or mannerisms, and in fact I requested info from him 3weeks ago, and didn't receive a godamn thin".
"Well, I'll make no excuses for Zuefelt, but I will get more info out to you asap. And who knows, Yes,I would like a seat at the table someday."
(Me)..."yeah so would I"
That about wraps it up guys, can't add much except that I left a message on Patterson's voice mail, asking for him to confirm wether or not we can meet for coffee, in the next couple of weeks while he is in the Winnipeg area on business. You can tell as much from body language in a face to face discussion, as you can from financial numbers in a annual statement...sometimes.
Let's hope the stock recovers some lost ground soon, and that solid, positive info starts coming down the pipe, instead of the crapola we witnessed yesterday.
Please guys, post me your thoughts on any of the above, or any other thing you want to share with me about WSMI. Check with you all later.
Shawshank
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