If the demand is substantial as is suggested, then sales should have been decent up to now and should move along quite nicely in the weeks and months to come. The profit margin on selling these CannaCigs is rather high as management has suggested, therefore if demand is great then sales should already have been great which means the company should be making money from sales revenues and so the proceeds from the sales can be used to purchase larger orders. I understand that the business needed to dilute to get the ball rolling and have initial cash for initial orders, however at some point the training wheels need to come off and the company needs to begin using cash proceeds from sales to fund future orders. If this threshold to operate without the need for dilution has not been reached yet then fine, but I think the question on every longs mind right now is, when will it be that time for the company? When will dilution cease and they become a real operating business with cash flow on the balance sheet? I have always been a proponent of proper dilution by a start up in order to fund getting the business on its feet, however shareholders at least need transparency, updates and communication about the plan and status of these goals if dilution is set to continue. Management has been fairly good with keeping us shareholders updated this year. I really like the fact that they update shareholders occasionally on the website via shareholder updates. However, much of the news in recent weeks has been about many positives of things and developments to come, plans and forward looking statements, meanwhile we have watched the outstanding share count move higher and higher over the months. If its management raising additional funds, fine, just inform us, if it is conversions of pref shares then fine, let us know. Additionaly, if management is raising funds for operations, great, but we need some idea of how it is planned to be used and why it is happening, especially after we all already witnessed much dilution over the first half of this year. What happened to all of that capital that was raised? Is all of that money gone already? If so, fine, ok, but we just need an accounting of it and understand where it went and why. Management intends to make this a "real" company and business but what goes a long way in making that happen is shareholder communication and transparency, which means on time filings and financial reports, updates and news, cash flow and at some point deciding to take the training wheels off, halt all dilution from then on and use operating cash flow to fund the business. Whatever happens, I think management and especially Cheryl Shuman have done an outstanding job pulling this company up to its feet and getting it primed for prime time which is more than most pink sheets shareholders can hope for, but I think the second half of this year is RFMK's make or break period wherein it needs to get over that critical threshold of business operations in order to make it the real deal, so to speak. If by Q1 2013 we are still all here talking about plans for upcoming sales, financial reports, filings, OTCBB, marketing, the next line of vapor inhaler, etc, etc, all the while looking at over a 1.5B O/S then in my opinion it will be a very sad state of affairs. Hate to throw cold water over all of this jubilation but its the truth. There is much to be excited about with this story, however all of that still does not necessarily guarantee the promised land for the business in regards to free operating cash flow, sales, revenues and an absolute accounting of the financial status of the company to shareholders in the form of on-time filings.
GLTA
$RFMK!
