Ann: Confirmation of Legal Titles , page-18

Money for the license concessions should not have been loaned to Fortitude. It should have been given in exchange for shares.

If Fortitude needed to borrow to keep it's licenses in good standing then it's a fair bet they would not be in a position to pay back the loans until one of the licenses if producing cashflow or unless they issued more shares for capital and diluted our holdings further.

By the time Fortitude is producing cashflow and able to make good the loan it will be worth far more than it is now. So we could use our repayed loan money to buy Fortitude shares then, but probably a lot less than if we'd just payed for the shares now.

CVI has been shafted on this arrangement IMHO. You don't lend money to a company so it can increase it's value before you buy it. The net effect is that the money is gone and inaccessible to Cityview whether it was a loan or a share purchase. It is a commercially ridiculous decision to make if you are genuinely trying to take over a company.