Wellstone Filters (NASDAQ:WLSF)
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Wellstone Recaps Progress
DURHAM, N.C., May 12 /PRNewswire-FirstCall/ -- Wellstone Filters (OTC:WLSF)
(BULLETIN BOARD: WLSF) -- Wellstone has experienced many dynamic developments
in the months preceding launch of the Wellstone cigarette.
Wellstone was conceived as a developer of a superior cigarette filter. After
formulation of its patented filter additive, Wellstone refined the use of its
additive in large scale manufacture of cigarette filters. In the fall of 2004,
Wellstone augmented its scientific staff and focus by hiring management and
product development personnel with extensive experience in the cigarette
business.
Wellstone's original concept was to license its patented filter to existing
cigarette companies. After research, and with the input of experienced
cigarette industry executives, it was evident to the Company that merely
licensing the filter to an existing cigarette brand or brands would be
profitable, but management recognized another option: Wellstone could launch
its own "Wellstone Cigarette Line" and thereby capture the added value of the
filter to a cigarette as well as the normal profit associated with the sale of
cigarettes.
Wellstone retained expert cigarette tasters to develop a blend of tobacco for a
potential Wellstone brand. The tobacco tasters uniformly praised the Wellstone
filter for its smooth and flavorful taste. Management's most revealing "test"
of the filter is to invite a professional taste tester to smoke his favorite
cigarette side by side with the Wellstone filter added in place of the original
filter. Without exception, tasters stated the Wellstone filter improved the
taste, made for a less harsh cigarette and a milder smoke.
Wellstone will now target two exploitable market segments of the cigarette
market. The first is the reduced risk conscious smokers who will choose
Wellstone because the taste of the cigarette is as good as or better than any
non risk reduced smoke.
Wellstone believes that in the past, smokers did not flock to previous, less
effective industry efforts at reduced risk cigarettes because these cigarettes
simply did not taste good. These cigarettes did not give the smoker enough of
the pleasures of smoking-in a word, taste. Wellstone redefines this formula.
Wellstone reduces the tar and nicotine levels in a novel way, without
destroying the fundamental reason people smoke: it is pleasurable in taste.
Recent FTC testing of Wellstone Full Flavor cigarettes showed significant
reductions in certain carcinogens and TSNAS-without compromising taste. Expert
test panels concluded that the Wellstone product to be superior in flavor and
taste than controls.
Another possible market segment is for a product which may satisfy a possible
government mandated reduced risk cigarette. Several federal legislative
initiates have foreshadowed a trend in government oversight to bring the
manufacture and sale of cigarettes under control of the Food and Drug
Administration. Part and parcel with this initiate is government mandated
minimums for reduced tar, nicotine and known carcinogen levels. Again,
Wellstone believes it has achieved these reductions as verified in independent
Federal Trade Commission certified laboratory testing.
Management would continue to target the reduced risk smoker, but also now
believes it can compete in the full flavor cigarette market with the Wellstone
cigarette, a full flavored, great tasting smoke, that happens to significantly
reduce tars, nicotine and certain carcinogens.
Management has identified two potential marketing tracks to achieve these
goals.
The first option is to ally the Wellstone cigarette with an existing major
cigarette manufacturer, who will manufacture the Wellstone cigarette and take
the Wellstone cigarette into its line of brands to be sold and distributed by
its existing sales force. This approach has the advantage of quick and
extensive market saturation with an existing sales force that will put the
Wellstone brand into tens of thousands of retail outlets. The primary
disadvantage to this track is the sharing of profits with a major ally.
Wellstone has engaged in significant discussions with existing manufacturers in
this class. No agreements have been reached to date.
The second track is to manufacture the Wellstone brand with a smaller
manufacturer and roll out the product gradually using an internally developed
sales force. This Approach has the advantage of preserving maximum profit for
the Company and retaining full control over the brand. The disadvantage to
this approach is a slower introduction of the product to the marketplace.
Wellstone has engaged in significant discussions with cigarette manufacturers
of this class and believes final agreement can be reached with any number of
manufacturers to pursue this option.
Management believes it has adequate cash on hand to pursue either of these
marketing strategies.
Regarding our website, Lowertar.com, Wellstone is awaiting approval from our
legal experts as to form and content.
In other developments, Wellstone obtained the option to manufacture and sell
the Silverton Brand, and reached agreement with several distributors to market
the Silverton Brand. Management believed it could utilize the extensive
experience of its executives to also compete in the traditional cigarette
market. Management has, however, determined to focus all of its efforts and
resources on the unique Wellstone cigarette, and has released all distributors
from obligations to market to pursue the sale of Silverton cigarettes on behalf
of Wellstone.
Management has all components in place to launch the Wellstone Brand, and is
focused on providing potential partners in either marketing track with
information, prototypes and documents required to implement either plan. This
stage of development is complex and cannot be rushed or compromised. Therefore,
Wellstone will launch its brand under one of the two tracks discussed within
the third quarter of 2005. Management believes it is prudent to develop each
of these tracks fully and to implement the plan that best insures the success
of the Wellstone cigarette.
Wellstone believes that its patented filter formulation removes tars and
certain carcinogens, while providing better taste. However, any claim as to the
benefit of any Wellstone cigarette to be sold will be made within the
parameters prescribed by the Federal Trade Commission. Wellstone emphasizes
that NO cigarette is safe. This corporate communication by Wellstone is not
intended to induce any person to purchase Wellstone tobacco products.
ABOUT THE COMPANY
Wellstone Filters, Inc. has developed and patented filter material that removes
certain carcinogens and other toxins produced when tobacco is smoked without
removing the compounds thought to be associated with the pleasurable effects of
smoking. Wellstone seeks to promote material for cigarette filters that will
enable cigarette manufacturers to provide consumers with an equally enjoyable
cigarette with substantially fewer carcinogens.
For more information, please see http://www.wellstonefilters.com/ or call
Investor relations at 303-620-9194.
In addition, all current shareholders, and interested parties should sign into
our private Corporate Guest Book, http://www.corporateguestbook.com/?WLSF to
receive timely updates and information on any future developments as they
happen.
Note: Except for the historical information contained herein, this new release
contains forward-looking statements that involve substantial risks and
uncertainties. Among the factors that could cause actual results or timelines
to differ materially are risks associated with research and clinical
development, regulatory approvals, supply capabilities and reliance on third-
party manufacturers, product commercialization, competition, litigation, and
the other risk factors listed from time to time in reports filed by Wellstone
with the Securities and Exchange Commission, including but not limited to risks
described under the caption "Important Factors That May Affect Our Business,
Our Results of Operation and Our Stock Price." The forward-looking statements
contained in this news release represent judgments of the management of
Wellstone as of the date of this release. Wellstone and its managers and agents
undertake no obligation to publicly update any forward- looking statements
DATASOURCE: Wellstone Filters, Inc.
CONTACT: Wellstone Filters, Inc.
Investor Relations, +1-303-620-9194
Web site: http://www.corporateguestbook.com/?WLSF
http://www.wellstonefilters.com/
http://www.lowertar.com/