Regal Partners Ltd V.RPL

Concerns With Both Parties

[InvestorSuperfan]

FRONTFOUR: I agree with others that their proposals of a reverse stock split and TSX listing mean nothing (and could actually hurt the SP and add costs to shareholders) - job #1 right now is generating cash flow and earnings from RPL's best assets while being open to a very sweet takeover offer should one present itself. I like the sound of a $2.50 per share offer price, but that may be wishful thinking. FrontFour's literature seems to suggest they want to turn the company around re. profitability before they consider selling it, which would likely involve a long, tough slog without much share price appreciation, though I believe they suggest they will leave the option to sell the company near term on the table. CURRENT BOARD: Since they have little / no shares in the company, they may be in even less of a hurry to sell the company. Unless they get positions on the Board of the acquiring entity, they will no longer be collecting a salary from RPL shareholders (along with other goodies they get as part of their compensation package). It may also be hard to land a good CEO if the company is considered to be continually up for sale - one would think any CEO worth his/her salt would want some kind of long-term commitment that the company will continue as an independent going concern. If not, why take the job (unless you are promised a generous golden handshake should the company be sold). IN SUMMARY: It seems to me that FrontFour is a wildcard bet - do RPL shareholders want to pay for two proxy PR campaigns or just one...?....it would be worth it if FrontFour presented themselves as a clearly superior alternative to the current Board. I don't think it's met that test. Though the current Board has not been overly impressive to date, I think the odds are that current RPL shareholders would probably end up better off keeping the current men in place.