Recently Posted by fahrenheit451:

Lots of opinion and speculation on what exactly this process means/will mean to retail shareholders. IMO it comes down to whether you trust or do not trust that Frank is doing what is best for the future of KWG and it`s shareholders regardless of the proposals. If you judge from history, I for one side on Trust. He could have invoked the 10:1 consolidation that was approved at the last AGM but has not. I will NOT be converting my shares to the "multiple" option unless and until the viability of using this approach is proven. It does however provide me the option to do so in future.

I do have a few issues that would like to be resolved/answered though..

- This was tried before and turned down..what has changed that makes this viable now and requesting a much higher multiple (300 vs 50). Am less influenced by the "margin" issue as I am for the potential of "big boys" wanting in (although requesting a larger consolidation number would have accomplished the same result)

- Why 300:1. Would have preferred wording to the effect "up to 300 :1"

- Why regulatory approval wasn't approved before the vote

- Even if approved by shs, the Board does not have to implement the capitalization. Then why proceed at all until it is agreed to be implemented. What are the circumstances that would delay/stop the implementation

- There is currently no plan by mgmt to issue "mutiple" option shs ... then this exercise is pure hope and wish that interest will follow.

We've tried the standstill approach and hasn't gotten KWG anywhere. Pro-active moves with patent, Chinese, and Fns at least continues to demonstrate Frank's determination to build the viability of KWG in the ROF even without help or even any recognition from all other interested and affected parties. GLTA

Thoughts from Keep Digging:

Following are my thoughts on the issues you raised. I’d love to see commentary, thoughts and opinions from others on the Board:

- This was tried before and turned down..what has changed that makes this viable now and requesting a much higher multiple (300 vs 50). Am less influenced by the "margin" issue as I am for the potential of "big boys" wanting in (although requesting a larger consolidation number would have accomplished the same result)

KD: Frank tried it in the past and it was defeated. He’s trying it again because he is determined, focused and is acting in the best interest of shareholders and KWG. He believes he needs this in order to take KWG to the next level. I also don’t care about buying on margin. I’m going to keep my shares in the form of subordinate/common shares. Why go through the time and (likely some nominal expense) to exchange back and forth to multiple voting shares when they are not intended for me?

Why 300:1. Would have preferred wording to the effect "up to 300 :1"

KD: I think that 300:1 was selected in order to arrive at the $9 Multiple Voting Share price. This must satisfy the internal controls of all the ‘big boys’ that Frank may or may not be talking to.

Why regulatory approval wasn't approved before the vote

KD: If you approach the regulators with your proposal along with shareholder approval, the optics are far better and the process would be more palatable for all involved. As well, in terms of wise use of resources, the regulators wouldn’t appreciate going through the review process of the proposal just to have it subsequently denied by shareholders.

Even if approved by shs, the Board does not have to implement the capitalization. Then why proceed at all until it is agreed to be implemented. What are the circumstances that would delay/stop the implementation

KD: Even if approved, the Board retains the right to allow/deny Frank the ability to do this. It is likely something that was discussed at length in Board meetings and is likely some sort of tool that Frank wants to keep in his arsenal in the event that he needs it. For those that know Frank, he always has a Plan A, Plan B, Plan C and often a Plan D. Check out our Board member listing on page 3 of the Management Information Circular: Cynthia Thomas is a U.S. Financial Advisor to companies in the resource space; Donald Sheldon is a fairly senior securities lawyer. These are well informed people that are helping and advising Frank. I think it’s a tool they want to have available to them and they will know the right time to deploy it.

There is currently no plan by mgmt to issue "mutiple" option shs ... then this exercise is pure hope and wish that interest will follow.

KD: According to the Circular, there is currently no plan to implement the proposed Capital Reorganization. However, I don’t believe that it is one of those “If-you-build-it-they-will-come” type of scenarios. In my opinion, the management of KWG knows something, are preparing for something or some entity has approached them. In my opinion, a management team would not go through the time and expense of such a proposal if it was not worthwhile or had value.

My best to all KWG Longs,

Keep Digging