Flyby
There may be some tax advantages in buying flow-through shares @ $0.10 (compared to market price of 0.07). Not sure if the tax break would amount to $0.03/s. At $0.10/s 800,000 shares would put $80k in KWG treasury. Similarly wts at $0.15 would help KWG by 120k
Its my guess that management wants to send out a message to investors that KWG shares are worth more than $0.07 (could be a lot more than $0.15), ...and something is cooking.
That something being cooked may require superior voting power and that's why management is, imo, trying to bulk up its own voting power and voting power in the hands of friendly entities (remember the 50Ms + 50Mwts in the IP transaction, at $0.10 and $0.15?, a potential 100M shares at an average cost of $0.125/s in friendly hands). Presumably, KSU (with ~10%OS, approx 75M shares as of May 2012) could be also considered as friend by management (greed is good her, so we would vote, as a powerful block, to support management's scheme, whatever it may be, since senior staff and directors seem to have enough skin in the company?)
After watching all this for a few times, we should now become experts in pattern recognition.
goldhunter