I posed my thoughts on "Third Time Lucky" with the obvious attempt to get some info as to why I should go along with the Multiple Share Proposal and I was hoping to be enlightened by the Company, or as happened, almost reprimanded for having the effrontery to dare question managements Master Plan re this issue. At any rate, I am very happy to "steal" a post from Canuk on SH and it gives me the kind of info I so desperately wanted when I originally posted. Canuk's post -
'' After reading the negatives post's last night, I had a conversation with Frank and asked him 2 questions.
#1 - As per L.... rant about suing Cliffs for trespassing.
- His reply was that they have been working for 2 years to try and assemble the evidence by Freedom of Information Act applications. It will take more time and they feel that there has been substantial "Tract Covering" by the Ontario gouvernment Ministries involved (Sound Familiar) He also said that taking such legal action must be carefully weighed as it will have many follow-on consequences that could be quite detrimental to the much larger opportunity to consolidate assets as Cliffs management has changed (Very interesting... and goes to my next question)
#2 - Tell me why the share structure is beneficial to me and KWG?
- His reply: For me it allows me to change at my discretion, my shares from say 0.10 Cents to $5.00 (at 50-1) I can now Margin those shares. I can borrow 70% of the value in my account at prime plus 1% to use to purchase stocks or just cash
KWG - Noront has acquired Cliff's camp and we have aspirations for their other ROF assets. Whether for those or other big ticket assets that will be accretive to our business plan, being able to give a mortgage back to the vendor would allow us to make those acquisitions WITHOUT DILUTING THE COMMON SHARES. Having the articles amended to provide us with the ability to issue PREFERRED SHARES means we don't have to "PAY CASH FOR OUR HOUSE, BUT CAN TAKE A MORTGAGE ON IT LIKE EVERYONE ELSE''.
I have been a shareholder of KWG for years. Started buying at .03, when they had 360M outstanding shares. When I sold Freewest and Spider I plowed it all back into KWG and have accumulated millions of shares. I like where Frank is taking us and have complete trust in him. I VOTED YES TO ALL!!!!!! cheers"
This is an excellent post from Canuk and in my mind, just the kind of info we shareholders need to decide whether to vote yes or no to the Multiple Share Plan. All of us should make our own mind up as to what to do and not blindly follow any popular or unpopular poster in this matter. It all goes back to do your own due diligence and then proceed. After all it is your money at play and at the end of the day we all want to get our maximum return on that money. Good luck, rj
