Shareholder Interest Group (Revolt-ing), page-2

100 points for instigating this.

The way I understand it, the convertible note is a binding document and a shareholder group that controls more than 50% of the company cannot vary those terms without breaching the terms of the note.

What you are trying to achieve requires a bid for the whole company where the bidder ends up with 50% of KBL or the Directors recommend the bid.

So essentially, what is needed is 50% of the company willing to sell their shares into another vehicle for shares to activate the compulsory conversion trigger on the note holders.

Assuming a newly incorporated LTD company was to make an all scrip bid for the shares, it will require funds for an the independent experts report and the legal costs associated with a new ASX listing.

Assuming an existing ASX listed company were to make an all scrip bid then it would only require funds for the independent experts report.

The questions are:

1. Who will make the bid?
2. What terms will everyone accept and how do they compare to being diluted by the bond holders?
3. Will a bidder brave this without knowing that they have at least 50% acceptance?

Questions 2 & 3 can be answered by the shareholders of KBL.

Who has the time to provide a matrix of what the possible outcomes would be if nothing was done and the note holders converted at market price? i.e how many shares would have to be issued at .005/.004/.003 etc and what will the current shareholder end up with?