I agree with you that there could be some very exciting news in the near future that will hopefully put some pressure on the buy side of KWG and cause upward pressure on the share price. 50 cents? I don’t know but it sounds good to me.

If the Board sells “more and more” of the multiple voting (“super”) shares, they will have to reduce the subordinate voting at a rate of 300 subordinate voting shares for every single multiple voting or “super share” that they sell. According to the Management Information Circular (pages 13-14 I recall), the exchange rate between the two classes of shares is fixed at a rate of 300 subordinate shares for every one multiple voting share. Recall that no new shares are being created so there is no dilution to occur as a result of this proposal.

In fact, if “more and more” multiple voting shares are sold, “more and more” subordinate voting shares will have to be purchased (at the rate of 300 subordinate shares for every multiple voting share), thereby creating demand for the subordinate voting shares (the ones that you and I now own) thereby putting upward pressure on the share price. It is indeed simple math!! No new shares are being created making it a zero sum exercise! Sounds like a win for existing shareholders.

For the record, I have been an executive officer of a few publicly traded organizations over several years. Management receiving a proposal from another entity does not trigger a material event and thus does not require management to disclose, make public or issue a news release. Similarly, entering negotiations with another entity in a back and forth manner does not trigger a material event and thus does not require management to disclose, make public or issue a news release. Proposals and negotiations are part of everyday normal course of business and occur on a regular basis.

Management is obliged to disclose, make public or issue a news release when a material event occurs, such as the signing Letter of Intent (LOI), Memorandum of Understanding (MOU) or some other final and/or binding agreement.

In my mind, Frank and team have done an outstanding job on keeping shareholders and other interested parties abreast of our business to the best extent they can and under the current circumstances. To prematurely comment on a mere proposal or ongoing negotiations would be indication to me of an immature, uniformed and unskilled management team that would jeapordize the interests of the business.

My best to all KWG Longs,

Keep Digging