Ann: Notice of General Meeting/Proxy Form, page-12

“LDA Capital’s financing model is intriguing and, while it does appear well suited to speculative growth companies that need capital but lack institutional support, it’s not without risks.
The way a typical LDA financing arrangement works is as follows: LDA will agree to provide a set amount of equity financing to a company – say a minimum of $10 million and a maximum of $50 million, over a certain period.
The company, at its discretion, can issue periodic capital calls that draw on the funding.When a call is made, a certain number of shares are issued to LDA Capital, which then sells them into the open market over, say, 10 days.
The number of shares issued to LDA is limited by the average turnover of the stock to avoid it being stuck with more shares than the market can absorb.LDA does not pay for the shares upfront, only on settlement.
The price it pays for the shares (that is, the amount of new capital raised) is based on the volume weighted average price only after the call is made, less a discount of about 10 per cent.”