Po's and Con"s, page-38

Hello Jawdan. Welcome to the thread. You are correct that the owners of Strandline won't be selling their shares any time soon because, apart from the low interest in the market to buy our shares, 71% of the shares they are receiving will be in escrow for 12 months. This is a significant restriction. It means that the Strandline acquisition will only increase our free float of shares for 12 months by 48 million shares rather than 166 million. Existing GUN shareholders will have ample opportunity to sell out ahead of Strandline GUN holders if they so desire.

However the private placement and SPP shares won't be escrowed so it's feasible that there will be selling from those quarters. If fully placed there are more shares in the capital raising than there are in the acquisition ($3.2 million placement worth vs $2.5 million acquisition).

The reality is that we have to raise a significant portion of this placement money anyway irrespective of the Strandline deal, due to our parlous capital position, so the risks from that quarter are limited to what is raised over and above what we need to keep the company going for 12+ months without Strandline. I estimate we need $1.5 million without Strandline therefore the extra exposure in this placement is to $1.7 million worth of shares at 1.5 cents = 113 million shares.

So the additional free float trading risk that this exercise brings about for the next 12 months is capped at 161 million shares (48 million plus 113 million).

Of course with out any buying depth none of this is getting sold anyway. People in this capital raising are locked in because they won't get a selling chance if we don't generate interest from the market place.