Yes I believe that the TSXV really has little choice but to approve this in the best interest of existing shareholders.
Insiders of the company and IBK Capital subscribed for over 47 per cent of the first tranche of convertible debentures, including all of the company's board of directors and senior management team.
Participation by the insiders in the first tranche closing of convertible debentures was considered a related-party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. The company was exempt from the requirements to obtain both formal valuation and minority shareholder approval in connection with such insider participation in reliance on sections 5.5(b) and 5.7(1)(a) of MI 61-101. A material change report was not filed in connection with the participation of the insiders in at least 21 days in advance of the first tranche closing of the convertible debentures, which the company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the closing in an expeditious manner.