Ann: Offer to Participate in SXG Share Purchase P, page-14

re: Ann: Offer to Participate in SXG Share Pu... hi rushingOne - I have thought about doing that as well but in the end have decided not to for a couple of reasons. The first is that I think the longer term prospects for the company are pretty good and it makes sense for me to hold on to all I have.

The second reason is trying to ensure against a worst case scenario. It would be nice to sell some 70,000 at 11 cents and pick them back up for 7 cents. Sounds like easy money to me. But take the case of the offer being above the 20.4m allowed. Say there are applications for 40m, how do they cut back? Everybody get half of they wanted? Everybody gets at least $1250 worth? I don't know and it is up to their discretion to decide. Since this offer was targetted at the smaller holders, maybe they decide to only cut the applications for those who are no longer holding (eg those in for just a quick bit of arbitrage)? I wouldn't want to sell out only to get nothing back.

I'm not saying that anything like this will happen because I don't really know. I am just going to increase my holding at what now appears to be a great price. (hope its still a great price in a year's time!)