KWG Longs,

good heart-r recently wrote:

If the new 300 share class is passed as is in circular schedule"A" it means that if 5 big funds want to buy only 10 million dollars worth each that about a BILLION AND A HALF new 1 shares would be created. Now that is DILUTION, BIG TIME !!! It also means the big boys would start to take control of any future voting leaving the small investor ( out to lunch).

Thoughts from Keep Digging:

Under the terms and conditions of the proposed Capital Reorganization as described in KWG’s Notice of Meeting and Management Information Circular, if the proposed Capital Reorganization is approved, and if JUST ONE of the big 5 funds wanted to purchase $10 million worth of Multiple Voting Shares, then $10m/$9 would be 1,111,111 multiple voting shares and it would result in 1,111,111 multiple voting shares x 300 (the ratio of common shares to multiple voting shares) or 333,333,300 common shares being taken out of the common stock (the shares that you and I own) which would significantly reduce the dilution and shares of outstanding of the common share class of shares and in my opinion would result in a significant appreciation in the price of both the Multiple Voting and Common Shares .

As an aside, a purchase of 333,333,336 common shares of KWG with the current shares outstanding would pass the threshold of 20% to trigger a takeover of KWG. Sure hope there are 5 ‘big boys’ that aspire to do this as this would result in a bidding war. The small investor would not be left out to lunch but would insist that lunch was on him or her (for everyone in the restaurant)!

Under the terms and conditions of the proposed Capital Reorganization, no new net shares will be created, no dilution will result and any large purchase of Multiple Voting Shares by one of the big 5 funds or any other entity will result in a corresponding decrease in the common share float (the ones that you and I own) at the rate of 300 common shares for every Multiple Voting Share purchased.

My Best to all KWG Longs,

Keep Digging