if we file arbitration kry would need a minimum of about $200mil (plus the sale of equipment) imo to pay off the noteholders and see arbitration thru to a conclusion

Do the math on the dilution to raise that kind of money. You are in the neighborhood of 1B shares. Ouch. Maybe that was Fung and co. trying to jack up the stock price back in Nov to .50+. A financing at a higher stock price would not cause as much dilution. And a proposed financing to potential investors wouldn't look as bad when it was offered at say .35 or so.