The 50 to 1 last year. It was voted down by the share holders so frank couldn't do it. So why do we need a 300 to 1 now when the Chinese deal is so close that would move the share price up or as gravell says that a road announcement is close that will also move the share price up without a 300 to 1 that WILL cause a lot of DILUTION with creating UNLIMITED shares that kwg WILL sell on the open market. Schedule "a" says that the share count in reserve will become "unlimited". Which means that kwg can sell as many more shares as they can thus creating possible dilution. It also says the multiple voting shares are a new class of shares even thou they can convert back and forth to the 1 share. The 300 share classification will also become unlimited in reserve that kwg can then sell at will to hedge funds or whomever. Thus as they are sold the dilution becomes greater and faster if large companies or hedge funds buy in at great amounts. As kwg needs funds you can bet that the new class of 300 shares will be sold avidly thus creating overall dilution. The only possible grace to the share holders would be if the want from hedge funds or large corporations was so great that the price of the 300 share were to increase dramatically. Not likely for a junior with no income or off take agreement or big pocketed partner. More likely to cause large dilution. The Chinese are possibly 5 months away. It might have been better to wait and see what they want and are going to do in the near future as their interest alone might increase the single share worth dramatically with a partnership or off take agreement. The government says a road route announcement is imminent. In one of those instances the multiple share price class might be dramatically reduced to say a 10 to 1 or 20 to 1 instead of a 300 to 1 to make it marginable or high enough for a hedge fund or large corporation to invest in. All this is in SCHEDULE "A" Now this new class of shares can only be put to a vote at an annual general meeting or at a special Meeting where a vote on the subject can be cast. Which really means that it could of been arranged after the timelines the Chinese set, 4 months for the engineering study to be finished and 60 days later the people's bank of china would announce complete funding for the railroad and/or after the government road announcement. After those announcements kwg share price might have risen to the point where a 10 to 1 or 20 to 1 new class of share instead of a 300 to 1 would of been needed safe guarding the position of the small investor a little more. This vote does not have to happen before the agm, it could wait until after the Chinese and/or government road plays out and brought to a special meeting. Kwg just did a private placement so they do not need this immediately. Kwg has a payment to make in September but this could be delayed by all parties as the Chinese are that important to all the players. I have the proxy papers and have read "SCHEDULE "A"
