Jarl I see the issue very simply. Mikoh is at the moment a one...

Jarl I see the issue very simply. Mikoh is at the moment a one project company - Thailand. It could be a many project company but until the proof of concept is working in Thailand this will be slow in coming.

Mr Sealy has said that it is critical to get the $5 million in to get the project underway in Thailand and we know from those of us that have attended company meetings that he has been all over the world looking for funding. This must be the best/only deal on the table as I would expect that due diligence was done on la Jolla.

The deal appears complicated but it can be broken down into its fundamental parts easily. La Jolla is funding a $6 million note from Mikoh that will be either converted into Mikoh shares or Kollakorn shares. Mikoh is funding a $5 million back to back convertible note from Kollakorn that will be converted into Kollakorn shares by either Mikoh or La Jolla.

If La Jolla converts to 100% Mikoh shares Mikoh gets an additional 17% of Kollakorn. If La Jolla converts to both then Mikoh gets a small dilution in its interest in Kollakorn to 18% but issues many less Mikoh shares.

What puts this deal apart from other deals is that La Jolla needs to wait and see which is the best investment for them Mikoh or La Jolla this will not be obvious for a while so I don't agree with the scare mongers who say la Jolla will dump shares immediately and in quantity.