Something I just posted on the other board for your feedback.

goldhunter

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I have been reading the fine prints of the Circular and my general understanding of the proposal is as follows (in layman term)

- Conversion of present common share to multiple voting shares MV) at 50 common shares to 1MV share. The MV shares as x50 voting points over the common shares.

- The common shares become subordinate voting shares (SV).

- both SV and presumably the SV are tradable on the TSX (Venture)

- Once the conversion procedures are completed going through ComputerShare and the Stock Brokerage then the non-converted share (the SV) and the MV share will both appear on the holding of the shareholder, say on TD Waterhouse on-line trading accounts.

- There is some flexibility for management to raise money due to the higher value of the MV (say $4.00 compared to $0.08). Also, $4.00 is better for margin flexibility for some (if one wants to gamble on margin. My opinion: Stay away from margin).

- Essentially, this is a reverse split but with an option to move back-and-forth.

Here comes my current thinking and concerns:

1. Flexibility in raising money: May be true

2. It would not make any difference during a TO battle since it would boil down to the net worth of the company rather than the SP. Especially if there are 2 classes of shares (they should be moving in tandem). However, moving up from $0.08 to $0.40 seems to be easier imagine (psychologically) than from $4.00 to $20 (the same factor of 5).

3. My main concern is the conversion procedures. How fast can this be done, difficult procedures, bureaucracy, etc? Can one do this on-line or by calling the brokers...and how long one must wait before the converted share are ready to be traded. In other words, how quick one can switch back-and-forth (within a few minutes, days)?

Any info/discussion/opinion to shed more light on this?

goldhunter (still not sure about the conversion)