"Somebody correct me if I am wrong, but I believe any shareholder cannot exceed 19.99% holding in a company without making an offer to all shareholders"

You are correct, my friend. They cannot exceed 19.9%.

In my opinion this deal was set up for their benefit. They have the option of exercising the warrants if the price is above the 1.16 figure, when and if they make their move. OR they can opt to gain from the options if another player outbids them just the same as if any one of us had warrants at that strike price.

They also have a separate option to increase their holdings to 19.9% for a full year beginning on May 02. In this case, they would pay market price for the shares. Win win in both cases for them.

Assuming they opt to go to the 19.9 figure at some point after May 02, they have two options. If the SP is below 1.16, they buy the whole 20 mill shares at market from the company. If the SP is above 1.16 (dreaming), They get to pay 1.16 for half of it and market for the rest.

The above does not confer any special rights to them to exceed the 19.9% rule, but there are other alarms going off in my mind.

We suddenly now have someone else coming out of the woods, and admitting they own greater than 10% of the company. The fact is, they have gone public about it, and stated they may buy more strictly for investment purposes, and nobody knew anything about them to this point? And is there any other entity out there doing the same thing as these guys? Certainly a second entity accumulating near 10% would be a signal that the battle was won before it started. Scary to think how easily we could be bulldozed aside at the appropriate moment, but envigorating to know the battle may be starting soon

best regards

K