What is the first statement in Schedule "A"?
It reads: "WHEREAS the authorized share capital of the Corporation consists of an unlimited number of shares classified as common shares (the “Common Shares”);"
That is what the existing by-laws state. The authorized share capital is already unlimited. Go read the earliest annual report filed to SEDAR in 1997. The share capital was then unlimited. The corporation has existed since long before SEDAR provided public access to corporate records, but I can assure you, even then, the authorized share capital was unlimited then, as well.
You then reference Exhibit 1 paragraph 3 (3.1), which explicitly states that the effect of creating multiple-vote shares is non-dilutive. It is defined as a non-dilutive event, but in case you missed it, this paragraph makes it plain.
Any dilutive event will be distributed equally to all voting shareholders on a pro rata basis. Period. Full stop.
The creation of multiple voting shares can only increase the buy-side for KWG paper. It cannot hurt existing shareholders. Right now, KWG is trapped in the penny stock corral. Institutional investors are blocked from holding shares by either their own corporate by-laws, or by securities regulations that limit risk assumed by mutual funds. If the door to the penny corral is opened to investors that simply could not have invested before, how could this be a bad thing?
I'd love to hear your answer to that.
Lar
