the way forward, page-5

Hi Silver,

Board changes to MVH I can't really say. I still think Ross, FC, and Navaratnam are a farily strong combination, with all three having the essential contacts in the required places for MVH to have any chance of succeeding.

Have been waiting on what influence/strengths Navaratnam would bring to MVH as I thought his appointment may have got the ball rolling a bit faster with regards to the Appollo JV. Mid 2009, the Chennai site is due for completion and still there is no JV established.

FC has an investor following along with overseas contacts, and Ross seems to have close ties and support with those in the medical field.

Sales have been down and they obviously have some slow payers on their system.

I still think the way Red Paragon deal was strucured was NOT in the best interests of MVH. A convertible note issue (at 8-10% with dilution) to Red Paragon may have raised fewer questions and given the market (and Red Paragon shareholders) time to digest and understand the potential of the relationship.

Also the actions of FC on HNR have given MVH shareholders an insight to how FC plays ball when times are tough. The addition to Ross on the Red Paragon board was a mistake imo (presenting serious trusts issue imo) but I understand why it was so (given FC actions with HNR). Ross is better suited directing MVH then trying to mess around with the FC family business. I hope Ross understands that under the current RP deal, if MVH crash and burns then those 13million shares delivered to Red RP are simply worthless. Ross has the upper hand in that context.

I can see a similar setup occuring with MVH as what has occurred with RP. MVH owns 87% of RP. Without knowing whos in Computer share clearing (11% of MVH), RH and his followers control around 15-20% of MVH.

A back up plan for Ross would be to approach the shareholders that own the other 13% of Red Paragon with the same deal type + perhaps a new MVH issue to some of the associates of that other 13% RP shareholding. That 13% along with Ross and his followers would control 15%+2%+(% associated with another 3B - say 5%) = approx 25% control of MVH (without taking into account computer share clearing P/L)

That 25% MVH ownership could carry substantial voting power in relation to changes in direction to both MVH and RP.

The Cannavos own a few shares and a now few more since the RP purchase but nothing that could swing a vote against the above structure if there was a conflict of interest within MVH imo.

Something to think about Silver. Its a strategy that FC (and VL) would be vary of imo that could see them voted off the RP board AND protect MVH from any HNR style mutiny!

But as I said before, lets see if they can relist first.

Cheers,
The Sparkler