Arnold T. Kondrat and Simon F. W. Village - Acquisition of call options
Kondrat and Village will have call options on all of the Debt Shares held by the Creditors, pursuant to which Kondrat and Village will have the right to require the Creditor to sell all of its Debt Shares to Kondrat and Village for a purchase price equal to Cdn$0.16 per share. As well, one of the Creditors will have a put option on its 4,690,000 Debt Shares, pursuant to which such Creditor will have the right to require Kondrat and Village to purchase such shares from the Creditor.
Kondrat currently holds 1,462,900 of the outstanding common shares of the Company. The said 1,462,900 shares, together with the 43,317,330 Debt Shares, total 44,780,230 shares (the "Deemed Holdings"). Village does not currently hold any shares of the Company.
Assuming completion of the Debt Settlements as well as the Financing (and assuming that the Financing is fully subscribed, but not taking into account the exercise of the Warrants), (a) the 43,317,330 Debt Shares will represent 48.45% of the outstanding common shares of the Company, and (b) the Deemed Holdings (i.e. 44,780,230 shares) will represent 50.09% of the outstanding common shares of the Company.
Kondrat and Village acquired the call options for investment purposes and may in the future increase or decrease their ownership of securities of the Company from time to time depending upon the business and prospects of the Company and future market conditions.
Kondrat is a director of the Company. Kondrat's address is Suite 7070, 1 First Canadian Place, 100
For further information: Arnold T. Kondrat, Phone: (416) 366-2221, Fax: (416) 366-7722; or Simon F. W. Village, Phone: +44 (0) 1959 569 237
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