Hello All, I spent some time reviewin

Hello All,

I spent some time reviewing Hollund's financial statement, and although I am not particularly thrilled by the degree of leverage, I suspect there may not have been any other way for Hollund to go. However, with revenue and advance orders, much of the debt situation can be eliminated fairly quickly should they decide to go that route. What's more, this first concession can be used as collateral for additional concessions. The loans Hollund lists are all short term in nature, and are accompanied by a clause indicating early repayment may be made.

Now think about this for a moment. Hollund conservatively estimated this first concession at around $40 million dollars. However, they formed a partnership with B&B Madera S.A. to reduce their start-up cost.

The partnership called for B&B Madera S.A. to provide the funding required for the initial project and the Company has paid an aggregate of $157,500 (inclusive of deposits, professional fees, penalties and final concession/work-permit cost) as of the date of this report. Under the terms of the Contract Agreement the Company has acquired a 13.8% share in Bayano Lake Wood Products Corp and a profit share of 9%. The Company will also receive additional revenues from a wood recovery volume based royalty of 0.16 cents per board foot on heavy hardwoods and 0.10 cents per board foot on light hardwoods. The Company shall have an option to purchase an additional 11.2% of the shares of Bayano Lake Products and 8% of the profit share by December 31, 2013.

https://www.otciq.com/otciq/ajax/showFinancia...?id=114617

This agreement indicates Hollund's percentage of the concession will be conservatively worth $5,520,000 with a profit share of 9%. In addition, Hollund will receive .16 cents per board foot on heavy hardwoods and .10 cents per board foot on light hardwoods. Hollund also has an option to purchase an additional 11.2% of Bayano Lake Wood Products shares which will give Hollund 8% more of the profit share if Hollund can come up with money to do so by December 31, 2013 (about two weeks from right now).

I suggest Hollund may have plans to purchase the additional shares of Bayano Lake Wood Products, and the funding may already be in place for them to do so.

Kgem