Ann: Variation of Skyfii 'Earn Out' Share Entitlements, page-6

after reading the new release, the new 22.5m earn-out shares issued now to vendor-shareholders will cancel the remaining 82.5m balance of earn-out shares that was contingent upon SKF hitting certain targets in 2016.

the minority shareholder in me says i would be happy to wait until March 2017 where the likelihood of SKF hitting its targets are slim, and thus escape a 36% dilution (and if SKF hit's it targets, by all means issue the 82.5 earn-out shares).

re the the excuse to facilitate an upcoming placement to so-called investors, the fact that 22.5m new (earn-out) shares are issued now at $0.000, and say the another 22.5m new shares are placed to institutional or sophisticated investors at $0.150, what effectively has happen is a total of 45m new shares have been issued at $0.075.

i would say to management that your current retail shareholders are an important source of funding. it would be much fairer and transparent to just have a rights issue at $0.150 per share so everyone have an option to can participate, and place the non-subscribed shares to outside investors.