SOURCE: Winning Brands Corporation

September 06, 2007 15:07 ET

Winning Brands Accounts Receivable Credit Facility Increased to $250,000

Response to Growth in Demand for Winning Colours® Multi-Cleaner

BARRIE, ON--(Marketwire - September 6, 2007) - Winning Brands Corporation (PINKSHEETS: WNBD) (www.WinningBrands.ca) announces that the world's largest independently owned accounts receivable financing organization, Bibby Financial Services (http://www.bibbyfinancialservices.com/about_us.aspx) has opened a $250,000 credit facility for the benefit of Winning Brands' production subsidiary Niagara Mist Marketing Ltd and its distribution partners.

The purpose of the accounts receivable financing credit facility is to ensure that Niagara Mist Marketing Ltd will see cashflow from sales of its products to distributors more rapidly. XMG Corporation, master distributor of Winning Colours® Multi-Cleaner has seen wholesale turnover of the new environmental cleaner grow from $2,800 per week when Paint & Decorating sector tests began in 2005 to over $8,000 per week to date in 2007. Winning Brands' CEO Eric Lehner explains the reason for the larger facility at this time: "There are positive leading indicators for accelerating growth measured by re-order activity and new retailer listings. There are additional sectors for Winning Colours® to enter and SKU variations that will deepen market penetration. We should be leveraging the credit worthiness of these receivables through commercial financing, not equity." The $250,000 accounts receivable financing facility will enable the sales organization and production facility to re-invest invoiced proceeds immediately into building larger inventory and promotional activity to support this momentum. The credit facility does not increase indebtedness of the company because all funds advanced are for goods produced and delivered to customers. Under the new arrangement, the company will typically receive funds within 2 days, rather than 30-45 days. Lehner adds, "In the first week since the arrangement became operational on August 28th, we have received $11,129.28 as advances on receivables that we would otherwise have needed to carry ourselves. Now we can immediately put that money to use with fast payments to suppliers and strengthening our work flow. The growth in the value of this company will not only be in the emerging power of its brand portfolio but also the reputation Winning Brands develops as a business partner."

Winning Brands Corporation manufactures Winning Colours® Multi-Cleaner in North America for domestic and commercial use. Winning Brands' full product range includes a variety of environmentally responsible alternative cleaning solutions, including amongst others SMART™ Wet Cleaning Solutions -- a non-toxic alternative to Perchloroethylene used in Dry Cleaning. The indicated sales figures for Winning Colours® Multi-Cleaner do not include sales of the company's additional products.

Certain statements in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Winning Brands Corporation (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; and (iii) competitive factors and developments beyond the Company's control. Winning Colors is a Registered Trademark of Niagara Mist Marketing Ltd and used under licence.

Contact Information

  • Information:
    Winning Brands Corporation
    Office Direct (705) 737-4062
    11 Victoria Street, Suite 220A
    Barrie, Ontario, Canada L4N 6T3
    News@WinningBrands.ca