Ann: Requisition of Meeting under Section 249D, page-56

Hi Z,

I think people misunderstand what no recourse financing looks like.

As best I understand it FC pledged shares (held on the lenders behalf by BNPNom) against a non resource loan for their portion of the underwriting of the DIA raise. FC believed that was the end of the story and in a few years time the SP would go up, they sell some and repay the loan. Lenders like this makes all sorts of promises but actually just sell the shares on market to replace the funds they have lent. So - 'we' own the shares - ie anyone who bought when they were selling. FC havent really lost on their new shares as they can walk away from the loan (thats what non recourse means) but they lose the shares they pledged (which have already been sold). They killed themselves and everyone else along the process because the SP collapses and their existing holding goes down in value. This was exaggerated by Bergen coming in taking a CN which they covert at the lowest price they can (as soon as it rallies enough they convert at a historical VWAP) and then sell (again making promises they wont etc).

Conclusion - there are no shorts BUT if the SP was to rally significantly through the 7-8c level AND the loan is still alive then the equity lender is in trouble and could need to buy back the shares to return to FC. Doesn't seem very likely now.

I believe that FC were trying to help no got hoodwinked into crappy financing they didnt understand. I also believe that JH was trying to to his best but strayed well outside his area of expertise and most like introduced Ferghana, Equity First (the supposed lender) and maybe even the original Canadian lender that started the problems although that may have just been by association with Ferghana. Either way MB has paid a price, GC has paid a price, RM has paid a price, SA has paid a price, AS has paid a price and now it seems JH & RS are also going to.

Brick - I have reasonable grounds to think that JM also used the toxic lending structure but if shareholders are really going to try to get all the answers then perhaps these are things that might get clarified. I have exercised my only tool which is selling and buying - 6 years of continuous ownship ended.