On Further Thought -

The Financial Post article shows exactly how a 'retraction' of shares would take place, that a company would retract a portion of the float by arrangement with a schedule 1 bank. What that means is shares can only be retracted by repurchase. In fact a retraction is the repurchase of shares in order that they be cancelled.

Once the shares are bought back, then they can be cancelled. So what Golden Band means by retraction and cancellation is a share buyback and cancellation of the shares dumped by shareholders. This would reduce the float considerably, perhaps by as much as 40%.

What the company means by extiguishment means that as we have proven, the only context under the auspices of a change of control put would be to convert the remaining shares from common to preferred's. That is considered an extiguishment for accounting purposes.

But in order to do so, retract, cancel and extinguish without being obliged to inform anyone, they would require a voluntary surrender of reporting status, which follows upon the voluntary delisting from the NEX and the venture exchange. In order to arrange an asset transfer, they must have a change of control put, which is why they need a pro-forma insolvency.

So this is how it comes together. You cannot retract, cancel and extinguish the same shares all at once. Retraction, cancellation and extiguishment are all very specific legal procedures.

-F6