Crown Point Responds to Misleading Comments from Dissident - Seite 2

LAIG's Demand For Warrants − LAIG's demand for warrants is significant because such warrants would have provided LAIG with a right to acquire even more Crown Point common shares at a fixed price of C$0.30 per share for an unspecified period of time. The Strategic Financing does not include warrants.

LAIG's Inflexible Position − LAIG did not present its financing demands as negotiable. Rather, LAIG said in writing that it would "require" these terms. Moreover, contrary to its public claim, LAIG did not mention shareholder approval in any of its correspondence with Crown Point.

LAIG's Coercive Tactics − LAIG tried to place Crown Point at a significant negotiating disadvantage by demanding exclusivity and by refusing to provide certain basic information that Crown Point's Board requested. Neither did LAIG publicly disclose how it coercively demanded that Crown Point acquiesce on exclusivity within one day over Canada's Remembrance Day holiday, threatening a proxy contest if Crown Point refused.

Crown Point's Board and management are fully aware of their fiduciary obligations and have acted and continue to act in the best interests of the Company with respect to LAIG's Inferior Proposal as well as the Strategic Financing.

• Crown Point Acted Responsibly − Contrary to LAIG's assertions, Crown Point acted responsibly in responding to LAIG's Inferior Proposal by requesting more information. The only thing that Crown Point rejected was the demand for exclusivity on one day's notice. This coercive demand would have required Crown Point to terminate or suspend financing discussions with other parties.
  
  
• Finalizing Strategic Financing − When LAIG made this exclusivity demand, Crown Point was finalizing the terms of its Strategic Financing. Had Crown Point acquiesced to LAIG's demand, the timely signing of the Strategic Financing agreement and the eight months of effort that preceded it would have been at risk. It would not have been in the best interests of Crown Point's shareholders for the Board to have jeopardized the Strategic Financing in favour of the coercive terms of LAIG's Inferior Proposal.