Ivernia Inc IVWFF

RE: RE: Griffin Withdrawal

[99921]

Hi Welland:
I am still confused about the process involved with the sale of notes by IVW to Sentient et al but it is my understanding that these notes will not be converted to IVW shares unless IVW defaults on its obligations to make payments due and to eventually repay the principal amounts to retire the notes. As long as IVW remains current with the note obligations the conversion into shares would not take place and no new shares would be issued. The potential conversion price, as I see it, was dictated by the current market price for IVW shares - the lenders were driving a hard bargain because of current economic conditions and because IVW, in particular, badly needs money to work itself out of the hole it is in.

If my understanding is correct, and no one seems to be confirming or correcting it, then Griffin is being misleading in its statements when it seems to be saying that the new shares are as good as issued and the lenders have taken over IVW. While the lenders own a substantial share of the company already things are not as bad as if all of the new 11 cent shares had been issued. If the shares were to be issued immediately then I presume there would be no need for notes - they could just sell the shares for 11 cents instead of taking out loans and immediately converting.

Without knowing what has gone on I am guessing that Griffin, as I have said before, is being entirely opportunistic in its approach to the purchase of IVW. The demands they attached to their offer are very onerous. If my thinking is correct they are trying to stampede IVW shareholders into thinking that IVW has sold out to the note holders and the future for small shareholders is bleak, thus encouraging them to think favorably about Griffin and its15 cent offer.

It appears to me that Griffin's approach here is far from straightforward and borders on the devious. They may have viewed IVW as a company with no access to substantial financing that would keep the company whole while it ships old inventory and works its way back to normal operations. They may have thought that they might have to up their bid to a higher figure but that a number much above 15 cents would still be a good investment for them in the long run. IVW has thrown a roadblock in front of them and it might be that Griffin has determined that they will not get the 50.1 percent of the IVW shares they were after. Rather than just saying in public that they would not be successful and were therefore withdrawing their bid they seem to have chosen to denigrate IVW management by implying that there has been a lot of underhanded dealing by IVW management and its supporters and seemingly indicating that Griffin is not willing to soil its hands by getting involved in all of that.

Again, all of this is shear guesswork on my part and I'm hoping that IVW will soon make some clear public statements that will  settle all of this and allow them to get on with the business of producing lead and selling it.

Cheers!