FORM 7 MONTHLY PROGRESS REPORTReport on Business 1. Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact. The Issuer continued to assess potential exploration programs and other project development initiatives for its various mineral properties in Ontario, its intellectual property rights and other business initiatives. FORM 7 – MONTHLY PROGRESS REPORT November 14, 2008 Page 2 2. Provide a general overview and discussion of the activities of management. In February, the board of directors and management assisted with the developments described in Section 1 above. The management and the directors continued to evaluate the Issuer’s existing projects, potential exploration programs and potential acquisitions as well as other business development strategies. Also, during the month of February 2017, following approval by the shareholders at the last annual and special meeting of shareholders held on August 18, 2016, the Issuer amended its authorized capital (i) to change the classification of each of the existing common shares of the Issuer into one convertible subordinate voting share (each a “Subordinate Voting Share”) (the “Reclassification”), and (ii) to create an unlimited number of convertible shares to be designated as multiple voting shares (each a “Multiple Voting Share”). The Reclassification became effective at the opening of markets on Tuesday, February 14, 2017. Three hundred (300) Subordinate Voting Shares are convertible at the option of the shareholders at any time into one (1) Multiple Voting Share. Similarly, each one (1) Multiple Voting Share is convertible at the option of the shareholders at any time into three hundred (300) Subordinate Voting Shares. At all meetings of shareholders, shareholders are entitled to cast one (1) vote for each one (1) Subordinate Voting Share and to cast three hundred (300) votes for each one (1) Multiple Voting Share. Dividend and liquidation rights for each Multiple Voting Share are correspondingly three hundred times the dividend and liquidation rights for each Subordinate Voting Share. The Issuer also announced a proposed private placement consisting of up to 7,500,000 units (each a “Unit”) at a price of $0.021 per Unit for aggregate gross proceeds of up to $157,500, subject to necessary board and regulatory approvals, with each Unit consisting of one Subordinate Voting Share and one full warrant (a “Warrant”), each Warrant entitling the holder to purchase one Subordinate Voting Share for $0.05 until 60 months from the date of issuance of the Warrant. The Issuer applied for and was granted relief from the Canadian Securities Exchange’s minimum price rule of $0.05. The Issuer also decided to postpone and reschedule for April 21, 2017 the previously announced upcoming special meeting of shareholders, originally scheduled to be held on Friday, March 28, 2017 (the “Meeting”). The record date for shareholders entitled to attend and vote at the Meeting remained February 21, 2017. The management worked closely with the board of directors in the preparation of required materials for the Meeting.
https://thecse.com/sites/default/files/CSE_Form_7_-_Monthly_Progress_Report_KWG28Feb17.PDF