So why would Garr trade??
Here's two parts posted on TH. Strange but I read somewhere if we did not use the money or we paid it back, we got our shares back. However I can not locate that anymore. perhaps it has already been deleted from TH. Hummmmmmm convenient.
In regards to the 2,000 multiple voting shares, these have been issued as part of the terms to a secured creditor. Importantly, while these shares carry multiple votes, they do not carry any additional financial advantages in the case of distributions to shareholders, such as cash dividends
RESPONSE:
Because of the previous relationship between the Companies, Minaco expressed interest in the expanding operations of Esprit, and subsequent negotiations resulted in Minaco providing a $600,000 line of credit. Both parties realized the potential of the diversified financial services being brought to market by Esprit.Esprit management felt it prudent to have additional resources available if needed, with particular reference to the Chinese market. Rather than issuing more additional common stock and significantly diluting the equity position of common shareholders, it was felt that the multiple-voting preferred shares provided a superior alternative.As disclosed in the Attorney Letter with Respect to Current Information, filed July 31st, 2007, the Company issued 2,000 preferred shares on April 17th, 2007, carrying 30 million votes per share, although no preference as to Company distributions versus common stock. In other words, for dividend purposes, preferred shares will only receive the equivalent of 2,000 common shares in funds.Esprit management is confident of the trust existing between all parties.In hind-sight, Esprit considers this credit facility very fortuitous, given the wild reversal in the availability of sub-prime capital investments.Again, with a view to maximizing shareholder value, Esprit has provided itself with capital resources to allow it the maneuvering capability to respond to the need for additional capital if circumstances dictate
Famous Quotes:
"Patience is a virtue, so I am told, of course I haven’t any."
"If they make me rich, all is forgiven"
~Me~
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