Vet

Your opinion is that the underwriters, lead by Macquarie, orchestrated a giant fraud to short 70 million in KRY stock in advance of news and then cover with the placement.

First off, the offering was on Toronto and not New York. The pre-market buys/sells were on New York and not Toronto. Upon opening, the share price fell from pre-market New York levels with an equivalent drop in Toronto vis a vis the exchange rate. If you check the Toronto trade records one week prior and post offering you will see the volume of Macquarie trades. They did not short 70 million shares and cover that volume - not even a fractional proportion of that amount. Macquarie were advisers to the original deal. They would have pre-offering commitments to sell a portion of the offering. Underwriters make their margin by buying, essentially at a discount (underwriting fees average 3 cents a share I do believe on this deal) and then sell at a margin. To suggest somehow that Macquarie fraudently shorted such volume and then cover with the offering is frankly absurd. Brokerage houses/underwriters are easy targets but to suggest and communicate in a public forum that Macquarie masterminded such a fraud would, I believe, not give you much protection under the LIBEL AND SLANDER ACT.

The benefit of this offering was multi-faceted. It distributes the 70 million shares over a larger shareholder base and reduces the amount of equity financing from CRRC, albeit an option held by KRY for equity financing.

The ability of KRY's management to put together a deal, such as this, with Chinese backing will see KRY survive and thrive. I can't voice the same opinion for Gold Reserve. At the end of the day, working on the assumption that the deal goes through, KRY will be able to demonstrate that their approach of working with the Venezuelans to reach a mutually beneficial deal was alot better, in the long run, than the decisions made by Gold Reserve to seek arbitration.

Vet - if you are going to be cynical about what takes place in regards to Crystallex perhaps you might want to take a closer look at the choices made at Gold Reserve.

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